Bill H.776 aims to regulate the use of artificial intelligence (AI) in health care coverage decisions in Vermont. It introduces a new section, 9423, which outlines specific requirements for health plans that utilize AI, algorithms, or software tools for utilization review. Key provisions include ensuring that AI decisions are based on individual medical histories and clinical circumstances rather than solely on group datasets, maintaining fairness and consistency in application, and allowing for audits by the Department of Financial Regulation. Additionally, health plans must disclose the use of AI in their policies and regularly review the performance and outcomes of these tools to ensure they do not cause harm to insured individuals.

The bill also stipulates that AI cannot deny, delay, or modify coverage determinations; such decisions must be made by licensed human health care providers who can evaluate the clinical issues involved. The act is set to take effect on July 1, 2026.