Senate Bill No. 1822 aims to regulate the use of artificial intelligence-based algorithms in the utilization review processes of health benefit plans in Texas. The bill introduces a new section, 4201.156, to the Insurance Code, which mandates that health insurance issuers and health maintenance organizations disclose whether they utilize such algorithms in their review processes. This disclosure must be made publicly available on their websites and provided in writing to insured individuals and healthcare providers. Additionally, the bill requires that any algorithms used must minimize bias based on various demographic factors and comply with evidence-based clinical guidelines.

Furthermore, the bill stipulates that issuers or their utilization review agents must submit an annual artificial intelligence compliance statement to the relevant department. This statement should detail the function and scope of the algorithms, provide a logic or decision tree, describe the training data sets used, and attest to compliance with the established guidelines. The commissioner has the authority to request further documentation or conduct inspections if there are concerns about compliance. Notably, any information submitted under this section is deemed confidential and not subject to public disclosure. The provisions of this act are set to take effect on September 1, 2025.

Statutes affected:
Introduced: ()
Senate Committee Report: ()
Engrossed: ()