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Bill

HB 1297

RELATING TO PROCUREMENT.

2025 Regular Session Introduced by Kyle Yamashita

HB 1297 mandates healthcare insurers in Arkansas to disclose AI algorithm details, ensuring transparency and accountability in healthcare decisions affecting enrollees.

Carried over to 2026 Regular Session.
#bonds #procurementcode #protests
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Bill Summary · HB 1297

Summary of House Bill 1297: Relating to Procurement

Bill Number: HB 1297
Introduced: January 29, 2025
Status: Senate Conferees Appointed: McKelvey Chair; Kim, Rhoads Co-Chairs; Gabbard, Fevella.
Classification: Bill
Subject: Bonds, Procurement Code, Protests

Purpose and Intent

House Bill 1297 aims to regulate the use of artificial intelligence (AI), algorithms, and other automated technologies within the healthcare insurance sector in Arkansas. The bill seeks to ensure transparency, accountability, and fairness in the application of AI in healthcare decision-making processes, particularly in utilization reviews conducted by healthcare insurers.

Key Provisions

1. Definitions and Scope

  • Artificial Intelligence: Defined as a machine-based system capable of making predictions or decisions based on human-defined objectives.
  • Healthcare Insurer: Includes insurance companies and health maintenance organizations that offer health benefit plans in Arkansas.

2. Disclosure Requirements

  • Starting January 1, 2026, healthcare insurers must disclose the strengths and limitations of AI algorithms used in their processes. This includes:
    • Known biases and performance variability.
    • Populations where the algorithms may be less effective.
    • Details about the algorithm's criteria, data sets used, and outcomes.

3. Privacy and Data Accessibility

  • Insurers must leverage federated data-sharing models to protect enrollee privacy and comply with national interoperability standards.
  • Explicit consent from enrollees is required for using their health data in AI development and validation.

4. Explanation of Algorithm Recommendations

  • Insurers must provide understandable explanations for AI-based recommendations affecting healthcare services, ensuring that enrollees can contest outcomes.

5. Clinician Oversight

  • Decisions regarding care cannot be made solely based on AI results. A licensed healthcare provider must review initial adverse determinations made by AI algorithms.

Impact

Who Would Be Affected?

  • Healthcare Insurers: Required to adapt their practices to comply with new disclosure and oversight requirements.
  • Enrollees: Individuals receiving healthcare services will benefit from increased transparency and the ability to contest decisions made by AI.
  • Healthcare Providers: Must ensure that AI recommendations are reviewed by qualified professionals.

Procedural Aspects

  • The bill has undergone several legislative actions, including amendments and committee reviews. It was reported correctly engrossed on February 27, 2025, and has been referred to various committees for further consideration.
  • The Senate has appointed conferees to discuss the bill further, indicating ongoing legislative interest and potential modifications before final approval.

Conclusion

HB 1297 represents a significant step towards regulating the integration of AI in healthcare insurance, aiming to protect consumer rights and ensure ethical practices in automated decision-making. The bill's implementation will require healthcare insurers to enhance transparency and accountability in their use of technology.

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

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