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Bill

HB 697

Health Insurance - Artificial Intelligence, Adverse Decisions, and Grievances - Reporting Requirements

2025 Regular Session Introduced by Gabriel Acevero and 25 co-sponsors

Maryland bill would mandate insurers report data on AI-driven coverage denials and appeals to strengthen regulatory oversight of algorithmic decision-making in health insurance.

Withdrawn by Sponsor
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Bill Summary · HB 697

Legislative bill overview

HB 697 would have required health insurance companies to report data on adverse decisions made using artificial intelligence, including denials and modifications of coverage. The bill aimed to create transparency and accountability mechanisms for AI-driven insurance determinations through mandatory grievance and reporting requirements to state regulators.

Why is this important

As insurers increasingly use AI algorithms to make coverage decisions, there is growing concern about algorithmic bias, accuracy, and appeals processes. Transparency requirements could help identify patterns of discrimination and enable regulators to oversee whether AI systems are making fair decisions that don't disproportionately harm specific populations.

Potential points of contention

  • Industry burden: Insurance companies may argue that detailed AI reporting requirements create administrative costs and competitive disadvantages if proprietary algorithms must be disclosed
  • Regulatory capacity: Questions about whether state insurance regulators have adequate resources and technical expertise to meaningfully analyze complex AI systems and adverse decision data
  • Scope ambiguity: Unclear definitions of what constitutes an "adverse decision" involving AI, potential conflicts between federal and state oversight of insurance practices, and whether reporting would capture all relevant decisions or only flagged cases

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

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