Relating to the use of artificial intelligence-based algorithms in utilization review conducted for certain health benefit plans.

This Texas bill requires health insurers and health plans to publicly disclose whether they use artificial intelligence (AI) algorithms to review medical treatments (utilization review). Insurers must ensure these AI tools minimize bias based on race, gender, age, disability, or other protected characteristics and follow evidence-based medical guidelines. They must annually submit their AI systems and training data to the state for review, including proof of compliance. The law directly affects insurers, healthcare providers, and patients by increasing transparency in AI-driven treatment decisions.