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Bill

HB 795

Health Insurance - Artificial Intelligence - Grievance Process and Reporting (AI Health Insurance Accountability Act of 2026)

2026 Regular Session Introduced by Matthew Schindler and 2 co-sponsors

Requires Maryland health insurers to disclose AI use in coverage decisions and establish grievance processes to challenge algorithm-based claim denials with state reporting.

Hearing 2/19 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 795

Legislative bill overview

HB 795 requires health insurers to disclose when artificial intelligence is used in coverage decisions and establishes a formal grievance process for patients challenging AI-determined claim denials. The bill mandates reporting requirements to state regulators on AI usage patterns and outcomes, creating accountability mechanisms for algorithmic decision-making in health insurance.

Why is this important

Health insurers increasingly use AI algorithms to approve or deny coverage and claims, but patients often don't know if a machine made their denial decision. This bill addresses a growing gap where people cannot effectively challenge decisions they don't understand, potentially affecting thousands of Marylanders' access to care and medical costs. Transparency requirements also help regulators detect discriminatory or error-prone AI systems before they harm large populations.

Potential points of contention

  • Industry compliance costs: Insurers may argue that disclosure requirements and separate AI grievance procedures impose significant administrative and technology costs that could increase premiums
  • Trade secret protection: Health insurers typically keep their algorithm designs confidential as competitive advantages; mandatory reporting could reveal proprietary methods to competitors
  • Grievance process burden: Establishing specialized AI grievance procedures distinct from existing appeals may create procedural complexity and longer resolution times if not carefully designed
  • Scope ambiguity: The bill's exact definition of what constitutes "AI involvement" in coverage decisions could create disputes over reporting requirements and enforcement

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

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