Texas 2025 - 89th Regular

Texas House Bill HB4018

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to use of artificial intelligence in utilization review conducted for health benefit plans.

Impact

The passage of HB 4018 could significantly impact how health insurance carriers and utilization review agents leverage AI in decision-making processes. By mandating that AI tools consider detailed individual clinical circumstances and not rely solely on generalized datasets, the bill aims to enhance the accuracy of health care service determinations. Furthermore, it emphasizes the necessity of human oversight in decisions regarding medical necessity, thereby reinforcing the role of healthcare providers in patient care.

Summary

House Bill 4018 introduces regulations concerning the use of artificial intelligence (AI) in the utilization review processes carried out by health benefit plans. The legislation seeks to ensure that AI technologies deployed in these reviews align with established medical practices and do not undermine the roles of human healthcare providers. The bill defines artificial intelligence and sets forth specific requirements that utilization review agents must adhere to when employing AI-based algorithms or tools.

Contention

Despite its aims to improve healthcare efficiency, HB 4018 may face contention from stakeholders concerned about the implications of increased regulation on technological advancement within the healthcare sector. Some proponents argue that imposing strict guidelines on AI usage could inhibit innovation and the adoption of beneficial technologies. Additionally, there may be debates regarding the adequacy of oversight procedures and the transparency of the AI algorithms used in utilization reviews, with questions around whether they address diverse patient needs equitably.

Notable_points

Key provisions of HB 4018 include requirements for algorithms to be reviewed for bias and non-discrimination, as well as mandates for transparent communications with enrollees regarding how AI is used in their healthcare processes. These stipulations reflect broader societal concerns regarding data privacy, algorithmic bias, and the ethical deployment of AI in sensitive areas like healthcare management. The bill is set to take effect on September 1, 2025, allowing time for stakeholders to prepare for the forthcoming regulatory changes.

Texas Constitutional Statutes Affected

Insurance Code

  • Chapter 4201. Utilization Review Agents
    • Section: New Section

Companion Bills

No companion bills found.

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