Policy Details

HB820 – Health Insurance – Utilization Review - Use of Artificial Intelligence

Date Passed

5/20/2025

Effective Date

10/1/2025

Summary

Regulates carriers’, PBMs’, and private review agents’ use of artificial intelligence, algorithms, or other software tools in utilization review. Requires determinations to account for an enrollee’s medical history and clinical circumstances; bars sole reliance on population‑level datasets; maintains clinician oversight; and sets documentation and appeal safeguards.

Healthcare Implications

Directly constrains automated prior authorization and medical‑necessity tools. Payers must implement guardrails, transparency, and human oversight; providers should expect clearer appeal documentation and be able to request human review. Aligns with national scrutiny of AI in utilization management and protects patients from algorithm‑only denials.

Impact Level

High

Keywords

Clinical Quality & Efficacy

Stakeholders

Providers & Health Systems; Patients & Public; Regulators & Government