Maryland 2025 Regular Session

Maryland House Bill HB1240 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1240
6	6
7	7	HOUSE BILL 1240
8	8	J3, J5, J4 5lr1810
9	9
10	10	By: Delegate Wilson
11	11	Introduced and read first time: February 7, 2025
12	12	Assigned to: Health and Government Operations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Health Care Providers and Health Insurance Carriers – Use of Artificial 2
19	19	Intelligence in Health Care Decision Making 3
20	20
21	21	FOR the purpose of prohibiting health care providers and carriers from using artificial 4
22	22	intelligence if the artificial intelligence has been designed only to reduce costs for a 5
23	23	health care provider or carrier at the expense of reducing the quality of patient care, 6
24	24	delaying care, or denying coverage for patient care; requiring health care providers 7
25	25	and carriers that use artificial intelligence for health care decisions annually to post 8
26	26	certain key data about the decisions on the health care provider’s or carrier’s website 9
27	27	and undergo a certain third–party audit; and generally relating to the use of artificial 10
28	28	intelligence in health care decision making by health care providers and health 11
29	29	insurance carriers. 12
30	30
31	31	BY adding to 13
32	32	Article – Health – General 14
33	33	Section 24–2501 through 24–2505 to be under the new subtitle “Subtitle 25. Artificial 15
34	34	Intelligence” 16
35	35	Annotated Code of Maryland 17
36	36	(2023 Replacement Volume and 2024 Supplement) 18
37	37
38	38	BY adding to 19
39	39	Article – Insurance 20
40	40	Section 15–147 21
41	41	Annotated Code of Maryland 22
42	42	(2017 Replacement Volume and 2024 Supplement) 23
43	43
44	44	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MAR YLAND, 24
45	45	That the Laws of Maryland read as follows: 25
46	46
47	47	Article – Health – General 26
48	48	2 HOUSE BILL 1240
49	49
50	50
51	51	SUBTITLE 25. ARTIFICIAL INTELLIGENCE . 1
52	52
53	53	24–2501. 2
54	54
55	55	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 3
56	56	INDICATED. 4
57	57
58	58	(B) “ARTIFICIAL INTELLIGEN CE” MEANS A MACHINE –BASED SYSTEM THAT: 5
59	59
60	60	(1) CAN, FOR A GIVEN SET OF H UMAN–DEFINED OBJECTIVES , MAKE 6
61	61	PREDICTIONS, RECOMMENDATIONS , OR DECISIONS INFLUEN CING REAL OR VIRTUAL 7
62	62	ENVIRONMENTS ; 8
63	63
64	64	(2) USES MACHINE AND HUMA N–BASED INPUTS TO PERC EIVE REAL 9
65	65	AND VIRTUAL ENVIRONM ENTS AND ABSTRACTS THOSE PERC EPTIONS INTO MODELS 10
66	66	THROUGH ANALYSIS IN AN AUTOMATED MANNER ; AND 11
67	67
68	68	(3) USES MODEL INFERENCE TO FORMULATE OPTIONS FOR 12
69	69	INFORMATION OR ACTIO N. 13
70	70
71	71	(C) (1) “HEALTH CARE PROVIDER ” MEANS: 14
72	72
73	73	(I) A PERSON WHO IS LICENS ED, CERTIFIED, OR OTHERWI SE 15
74	74	AUTHORIZED UNDER THE HEALTH OCCUPATIONS ARTICLE OR § 13–516 OF THE 16
75	75	EDUCATION ARTICLE TO PROVIDE HE ALTH CARE IN THE ORD INARY COURSE OF 17
76	76	BUSINESS OR PRACTICE OF A PROFESSION OR I N AN APPROVED EDUCAT ION OR 18
77	77	TRAINING PROGRAM ; OR 19
78	78
79	79	(II) A FACILITY WHERE HEAL TH CARE IS PROVIDED TO 20
80	80	PATIENTS OR RECIPIEN TS, INCLUDING: 21
81	81
82	82	1. A FACILITY AS DEFINED IN § 10–101 OF THIS ARTICLE; 22
83	83
84	84	2. A HOSPITAL AS DEFINED IN § 19–301 OF THIS 23
85	85	ARTICLE; 24
86	86
87	87	3. A RELATED INSTITUTION AS DEFINED IN § 19–301 OF 25
88	88	THIS ARTICLE; 26
89	89
90	90	4. A HEALTH MAINTENANCE O RGANIZATION AS 27
91	91	DEFINED IN § 19–701 OF THIS ARTICLE; 28
92	92
93	93	5. AN OUTPATIENT CLINIC ; 29 HOUSE BILL 1240 3
94	94
95	95
96	96
97	97	6. A MEDICAL LABORATORY ; 1
98	98
99	99	7. A COMPREHENSIVE CRISIS RESPONSE CENTER ; 2
100	100
101	101	8. A CRISIS STABILIZATION CENTER; AND 3
102	102
103	103	9. A CRISIS TREATMENT CEN TER ESTABLISHED UNDE R 4
104	104	§ 7.5–207 OF THIS ARTICLE. 5
105	105
106	106	(2) “HEALTH CARE PROVIDER ” INCLUDES AN AGENT, AN EMPLOYEE, 6
107	107	AN OFFICER, AND A DIRECTOR OF A FACILI TY DESCRIBED IN PARAGRA PH (1)(II) OF 7
108	108	THIS SUBSECTION AND AN AGENT AND AN EMPLOYEE OF A PERSON DESCRIBED IN 8
109	109	PARAGRAPH (1)(II) OF THIS SUBSECTION . 9
110	110
111	111	24–2502. 10
112	112
113	113	A HEALTH CARE PROVIDER MAY NOT USE ARTIFICIAL INTEL LIGENCE IF THE 11
114	114	ARTIFICIAL INTELLIGE NCE HAS BEEN DESIGNED ONLY TO REDUCE COSTS FOR A 12
115	115	HEALTH CARE PROVIDER AT THE EXPENSE OF REDUCING THE QUALITY OF PATIENT 13
116	116	CARE, DELAYING PATIENT CARE, OR DENYING COVERAGE FOR PATIENT CARE . 14
117	117
118	118	24–2503. 15
119	119
120	120	(A) ON OR BEFORE JULY 1 EACH YEAR, BEGINNING IN 2026, EACH HEALTH 16
121	121	CARE PROVIDER THAT U SES ARTIFICIAL INTEL LIGENCE TO DETERMINE OR 17
122	122	INFLUENCE HEALTH CARE DECISIONS SHALL POST ON THE HEALTH CARE 18
123	123	PROVIDER’S WEBSITE DOCUMENTAT ION DETAILING KEY DATA ABOUT THE 19
124	124	DECISIONS MADE USING ARTIFICIAL INTELLIGE NCE IN THE IMMEDIATELY 20
125	125	PRECEDING YEAR, INCLUDING: 21
126	126
127	127	(1) THRESHOLDS FOR WHEN A DECISION IS REVIEWED BY AN 22
128	128	INDIVIDUAL; 23
129	129
130	130	(2) RATES OF DECISIONS OVERTUR NED AFTER REVIEW BY AN 24
131	131	INDIVIDUAL; 25
132	132
133	133	(3) RATES OF MISDIAGNOSIS ; 26
134	134
135	135	(4) RATES OF MISCALCULATE D DOSAGES OF MEDICIN E; 27
136	136
137	137	(5) THE NUMBER OF I NSTANCES WHEN A SUGGESTED PLAN OF CARE 28
138	138	DISREGARDS A PATIENT’S: 29 4 HOUSE BILL 1240
139	139
140	140
141	141
142	142	(I) PREEXISTING CONDITION ; 1
143	143
144	144	(II) MEDICATIONS THAT HAVE RELATIVE CONTRAINDICAT IONS 2
145	145	OR ABSOLUTE CONTRAIN DICATIONS WITH THE SUGGESTED P LAN; OR 3
146	146
147	147	(III) CARE PREFERENCES DUE TO PERSONAL BELI EFS; AND 4
148	148
149	149	(6) ANY OTHER DATA REQUIRED B Y THE DEPARTMENT . 5
150	150
151	151	(B) DATA POSTED IN ACCORD ANCE WITH SUBSECTION (A) OF THIS SECTION 6
152	152	SHALL BE ARCHIVED AND REMAIN PUBLICLY AVAI LABLE ON THE HEALTH CARE 7
153	153	PROVIDER’S WEBSITE. 8
154	154
155	155	(C) (1) ON OR BEFORE JULY 1 EACH YEAR, BEGINNING IN 2026, EACH 9
156	156	HEALTH CARE PROVIDER THAT USES ARTIFICIAL INTELLIGENCE TO DETE RMINE OR 10
157	157	INFLUENCE HEALTH CARE DECISIONS SHALL UNDERGO A THIRD –PARTY AUDIT TO 11
158	158	EVALUATE WHETHER THE HEALTH CARE DECISIONS MADE BY AN ARTIFICIAL 12
159	159	INTELLIGENCE SYSTEM : 13
160	160
161	161	(I) ALIGN WITH MEDICAL CA RE STANDARDS ; 14
162	162
163	163	(II) MEET ETHICAL STANDARD S; OR 15
164	164
165	165	(III) DELAY CARE EXCESSIVELY. 16
166	166
167	167	(2) AT THE REQUEST OF THE DEPARTMENT , A HEALTH CARE 17
168	168	PROVIDER SHALL SUBMI T TO THE DEPARTMENT PROOF THAT AN AUDIT WAS 18
169	169	COMPLETED IN ACCORDA NCE WITH PARAGRAPH (1) OF THIS SUBSECTION . 19
170	170
171	171	24–2504. 20
172	172
173	173	(A) IF A HEALTH CARE PROV IDER VIOLATES THIS S UBTITLE, THE 21
174	174	DEPARTMENT MAY IMPOSE A PENALTY NOT TO EXCEED $10,000 PER OFFENSE. 22
175	175
176	176	(B) IN DETERMINING THE AM OUNT OF A PENALTY UNDER SUBSECTION (A) 23
177	177	OF THIS SECTION, THE DEPARTMENT SHALL CONS IDER: 24
178	178
179	179	(1) THE TYPE, SEVERITY, AND DURATION OF THE VIOLATION; 25
180	180
181	181	(2) WHETHER THE HEALTH CARE PROVIDER KNEW OR SHO ULD HAVE 26
182	182	KNOWN OF THE VIOLATI ON; 27
183	183	HOUSE BILL 1240 5
184	184
185	185
186	186	(3) THE EXTENT TO WHICH T HE HEALTH CARE PROVIDER HAS A 1
187	187	HISTORY OF VIOLATION S; AND 2
188	188
189	189	(4) WHETHER THE HEALTH CARE PROVIDER CORRECTED T HE 3
190	190	VIOLATION AS SOON AS THE HEALTH CARE PROVIDER KNEW OF THE VIOLATIO N. 4
191	191
192	192	24–2505. 5
193	193
194	194	THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS SUBTI TLE. 6
195	195
196	196	Article – Insurance 7
197	197
198	198	15–147. 8
199	199
200	200	(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 9
201	201	INDICATED. 10
202	202
203	203	(2) “ARTIFICIAL INTELLIGEN CE” MEANS A MACHINE –BASED SYSTEM 11
204	204	THAT: 12
205	205
206	206	(I) CAN, FOR A GIVEN SET OF H UMAN–DEFINED OBJECTIVES , 13
207	207	MAKE PREDICTIONS , RECOMMENDATIONS , OR DECISIONS INFLUEN CING REAL OR 14
208	208	VIRTUAL ENVIRONMENTS ; 15
209	209
210	210	(II) USES MACHINE AND HUMAN –BASED INPUTS TO PERC EIVE 16
211	211	REAL AND VIRTUAL ENV IRONMENTS AND ABSTRA CTS THOSE PERCEPTION S INTO 17
212	212	MODELS THROUGH ANALY SIS IN AN AUTOMATED MANNER; AND 18
213	213
214	214	(III) USES MODEL INFE RENCE TO FORMULATE O PTIONS FOR 19
215	215	INFORMATION OR ACTIO N. 20
216	216
217	217	(3) (I) “CARRIER” MEANS: 21
218	218
219	219	1. AN INSURER AUTHORIZED T O SELL HEALTH 22
220	220	INSURANCE; 23
221	221
222	222	2. A NONPROFIT HEALTH SER VICE PLAN; 24
223	223
224	224	3. A HEALTH MAINTENANCE O RGANIZATION; 25
225	225
226	226	4. A DENTAL PLAN ORGANIZATION ; AND 26
227	227	6 HOUSE BILL 1240
228	228
229	229
230	230	5. ANY OTHER ENTITY PROVIDI NG A PLAN OF HEALTH 1
231	231	INSURANCE, HEALTH BENEFITS , OR HEALTH SERVICES A UTHORIZED UNDER THE 2
232	232	INSURANCE ARTICLE OR THE FEDERAL AFFORDABLE CARE ACT. 3
233	233
234	234	(II) “CARRIER” INCLUDES THE AGENTS , EMPLOYEES, 4
235	235	OFFICERS, AND DIRECTORS OF AN ENTITY DESCRIBED IN SUBPARAGRAPH (I) OF 5
236	236	THIS PARAGRAPH . 6
237	237
238	238	(B) A CARRIER MAY NOT USE ARTIFICI AL INTELLIGENCE IF T HE ARTIFICIAL 7
239	239	INTELLIGENCE HAS BEE N DESIGNED ONLY TO R EDUCE COSTS FOR A CARRIER AT 8
240	240	THE EXPENSE OF REDUC ING THE QUALITY OF P ATIENT CARE, DELAYING PATIENT 9
241	241	CARE, OR DENYING COVERAGE FOR PATIENT CARE . 10
242	242
243	243	(C) (1) ON OR BEFORE JULY 1 EACH YEAR, BEGINNING IN 2026, EACH 11
244	244	CARRIER THAT USES ARTIFICIAL INTELLIGENCE TO DETE RMINE OR INFLUENCE 12
245	245	HEALTH CARE DECISIONS SHALL POST ON THE CARRIER’S WEBSITE 13
246	246	DOCUMENTATION DETAIL ING KEY DATA ABOUT T HE DECISIONS MADE US ING 14
247	247	ARTIFICIAL INTELLIGE NCE IN THE IMMEDIATE LY PRECEDING YEAR , INCLUDING: 15
248	248
249	249	(I) THRESHOLDS FOR WHEN A DECISION IS REVIEWED BY AN 16
250	250	INDIVIDUAL; 17
251	251
252	252	(II) RATES OF DECISIONS OVERTUR NED AFTER REVIEW BY AN 18
253	253	INDIVIDUAL; 19
254	254
255	255	(III) DENIAL RATES; 20
256	256
257	257	(IV) CRITERIA USED FOR APPROVALS O R DENIALS; AND 21
258	258
259	259	(V) ANY OTHER DATA REQUIRED BY THE COMMISSIONER . 22
260	260
261	261	(2) DATA POSTED IN ACCORD ANCE WITH PARAGRAPH (1) OF THIS 23
262	262	SUBSECTION SHALL BE ARCHIVED AND REMAIN PUBLICLY AVAI LABLE ON THE 24
263	263	CARRIER’S WEBSITE. 25
264	264
265	265	(D) (1) ON OR BEFORE JULY 1 EACH YEAR, BEGINNING IN 2026, EACH 26
266	266	CARRIER THAT USES ARTIFICIAL INTELLIGENCE TO DETE RMINE OR INFLUENCE 27
267	267	HEALTH CARE DECISION S SHALL UNDERGO A THIRD –PARTY AUDIT TO EVALU ATE 28
268	268	WHETHER THE HEALTH C ARE DECISIONS MADE B Y AN ARTIFICIAL INTE LLIGENCE 29
269	269	SYSTEM: 30
270	270
271	271	(I) ALIGN WITH MEDICAL CARE ST ANDARDS; 31
272	272	HOUSE BILL 1240 7
273	273
274	274
275	275	(II) MEET ETHICAL STANDARDS ; OR 1
276	276
277	277	(III) DELAY CARE EXCESSIVELY . 2
278	278
279	279	(2) AT THE REQUEST OF THE COMMISSIONER , A CARRIER SHALL 3
280	280	SUBMIT PROOF TO THE COMMISSIONER THAT AN AUDIT WAS CO MPLETED IN 4
281	281	ACCORDANCE WITH PARA GRAPH (1) OF THIS SUBSECTION . 5
282	282
283	283	(E) (1) IF A CARRIER VIOLATES THIS SUBTITLE, THE COMMISSIONER MAY 6
284	284	IMPOSE A PENALTY NOT EXCEEDING $10,000 PER OFFENSE. 7
285	285
286	286	(2) IN DETERMINING THE AM OUNT OF A PENALTY UN DER 8
287	287	PARAGRAPH (1) OF THIS SUBSECTION, THE COMMISSIONER SHALL CONSIDER : 9
288	288
289	289	(I) THE TYPE, SEVERITY, AND DURATION OF THE VIOLATION; 10
290	290
291	291	(II) WHETHER THE CARRIER KNEW OR SHOULD HAVE KNOWN OF 11
292	292	THE VIOLATION; 12
293	293
294	294	(III) THE EXTENT TO WHICH THE CARRIER HAS A HISTORY OF 13
295	295	VIOLATIONS; AND 14
296	296
297	297	(IV) WHETHER THE CARRIER CORRECTED THE VIOLAT ION AS 15
298	298	SOON AS THE CARRIER KNEW OF THE VIOLATIO N. 16
299	299
300	300	(F) THE COMMISSIONER MAY ADOPT REGU LATIONS TO CARRY OUT THIS 17
301	301	SECTION. 18
302	302
303	303	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
304	304	October 1, 2025. 20