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Bill

HB 1240

Health Care Providers and Health Insurance Carriers - Use of Artificial Intelligence in Health Care Decision Making

2025 Regular Session Introduced by C.T. Wilson

Bill establishes AI oversight requirements for healthcare providers and insurers to ensure transparency and accountability in treatment and coverage decisions. Status: Withdrawn March 2025.

Withdrawn by Sponsor
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WeVote Research Nonpartisan
Bill Summary · HB 1240

Legislative bill overview

HB 1240 would establish regulatory requirements for health care providers and insurance carriers using artificial intelligence in health care decision-making processes. The bill aims to create transparency, accountability, and oversight standards for AI applications in clinical and coverage decisions.

Why is this important

As AI increasingly influences medical diagnoses, treatment recommendations, and insurance coverage determinations, regulatory frameworks become critical to protect patient safety and ensure equitable access to care. Without standards, algorithmic bias, unexplainable denials, and medical errors could disproportionately harm vulnerable populations while providers and insurers lack clear accountability mechanisms.

Potential points of contention

  • Implementation burden: Healthcare systems may face significant compliance costs and operational disruptions from new AI oversight requirements, potentially affecting smaller providers disproportionately
  • Innovation concerns: Strict regulatory requirements could slow development and adoption of beneficial AI tools or make compliance economically unfeasible for emerging technologies
  • Transparency vs. proprietary interests: Requiring disclosure of AI decision-making logic may conflict with vendors' trade secret protections and competitive interests in the health tech industry
  • Scope and enforceability: Defining what qualifies as "health care decision-making" and who bears responsibility (provider, insurer, vendor) remains unclear and potentially litigious

Compiled from official sources — confirm details with the bill’s official record.

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