Artificial Intelligence - Health Software and Health Insurance Decision Making

SB 987 requires Maryland’s Health Care Commission to maintain a registry for artificial intelligence (AI) health software distributed or operated in the state. It prohibits anyone from distributing or operating unregistered AI health software and bans health insurance carriers from using AI to decide or influence health care decisions (e.g., treatment coverage or diagnoses). The law includes fines up to $10,000 per day for violations, with penalties based on harm caused, investigation costs, and prior offenses. It specifically allows insurers to use AI for non-health-related tasks, such as administrative operations, while defining "AI" as systems that make decisions affecting real-world environments. The bill takes effect October 1, 2025.