STATE OF NEW YORK ________________________________________________________________________ 9149 IN ASSEMBLY February 8, 2024 ___________ Introduced by M. of A. HUNTER -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to the use of artificial intelligence for utilization review The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new section 338 to 2 read as follows: 3 § 338. Notification regarding the use of artificial intelligence for 4 utilization review. (a) As used in this section, the following terms 5 shall have the following meanings: 6 (1) "Adverse determination" shall have the same meaning as such term 7 is defined in section four thousand nine hundred of the public health 8 law. 9 (2) "Artificial intelligence-based algorithm" means any artificial 10 system that performs tasks under varying and unpredictable circumstances 11 without significant human oversight or that can learn from experience 12 and improve performance when exposed to data sets. 13 (3) "Clinical peer reviewer" shall have the same meaning as such term 14 is defined in section four thousand nine hundred of the public health 15 law. 16 (4) "Utilization review" shall have the same meaning as such term is 17 defined in section forty-nine hundred of the public health law. 18 (b) The superintendent shall require all insurers authorized to write 19 accident and health insurance in this state, corporations organized 20 pursuant to article forty-three of this chapter, and a health mainte- 21 nance organization certified pursuant to article forty-four of the 22 public health law to notify insureds and enrollees about the use or lack 23 of use of artificial intelligence-based algorithms in the utilization 24 review process on the accessible Internet website of such insurer 25 authorized to write accident and health insurance in this state, corpo- 26 ration organized pursuant to article forty-three of this chapter, or 27 health maintenance organization certified pursuant to article forty-four 28 of the public health law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14269-01-4
A. 9149 2 1 (c) Every insurer authorized to write accident and health insurance in 2 this state, corporation organized pursuant to article forty-three of 3 this chapter, and health maintenance organization certified pursuant to 4 article forty-four of the public health law shall submit the artificial 5 intelligence-based algorithms and training data sets that are being used 6 or will be used in the utilization review process to the department. The 7 department shall implement a process that allows the department to 8 certify that these artificial intelligence-based algorithms and training 9 data sets have minimized the risk of bias based on the covered person's 10 race, color, religious creed, ancestry, age, sex, gender, national 11 origin, handicap or disability and adhere to evidence-based clinical 12 guidelines. 13 (d) A clinical peer reviewer who participates in a utilization review 14 process for an insurer authorized to write accident and health insurance 15 in this state, a corporation organized pursuant to article forty-three 16 of this chapter, and a health maintenance organization certified pursu- 17 ant to article forty-four of the public health law that initially uses 18 artificial intelligence-based algorithms for a utilization review shall 19 open and document the utilization review of the individual clinical 20 records or data prior to issuing an adverse determination. 21 (e) (1) A violation of the provisions of this section shall be subject 22 to one or more of the following penalties at the discretion of the 23 superintendent, in consultation with the commissioner of health and the 24 commissioner of education as applicable: 25 (i) Where a violation is made by an insurer authorized to write acci- 26 dent and health insurance in this state, a corporation organized pursu- 27 ant to article forty-three of this chapter, or a health maintenance 28 organization certified pursuant to article forty-four of the public 29 health law: 30 (A) Suspension or revocation of license; 31 (B) Refusal, for a period not to exceed one year, to issue a new 32 license; 33 (C) A fine of not more than $5,000 for each violation of this section; 34 or 35 (D) A fine of not more than $10,000 for each willful violation of this 36 section. 37 Fines imposed pursuant to the provisions of this subparagraph on a 38 single insurer authorized to write accident and health insurance in this 39 state, a corporation organized pursuant to article forty-three of this 40 chapter, or a health maintenance organization certified pursuant to 41 article forty-four of the public health law shall not exceed five 42 hundred thousand dollars in aggregate during a calendar year. 43 (ii) Where a violation is made by a clinical peer reviewer: 44 (A) Suspension or revocation of license; 45 (B) Refusal, for a period not to exceed one year, to issue a new 46 license; 47 (C) A fine of not more than $5,000 for each violation of this section; 48 or 49 (D) A fine of not more than $10,000 for each willful violation of this 50 section. 51 Fines imposed pursuant to the provisions of this subparagraph on a 52 single clinical peer reviewer shall not exceed one hundred thousand 53 dollars in aggregate during a calendar year. 54 (2) Penalties pursuant to the provisions of this subsection shall be 55 in addition to any other remedies or penalties that may be imposed under 56 any other applicable law.
A. 9149 3 1 (f) The superintendent shall promulgate all rules and regulations 2 necessary for the implementation of this section. 3 § 2. This act shall take effect on the sixtieth day after it shall 4 have become a law. Effective immediately, the addition, amendment and/or 5 repeal of any rule or regulation necessary for the implementation of 6 this act on its effective date are authorized to be made and completed 7 on or before such effective date.