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June 9, 2025

Connecticut, Nebraska, Nevada, and Texas Introduce AI Regulation Bills

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The ongoing debate of artificial intelligence’s (AI) role in healthcare continues. While AI can be beneficial when used to alleviate administrative burden, their use in adverse determinations in healthcare remains contentious.

As some members of Congress push for a 10-year ban on state-driven AI regulation, many states continue to pass or propose AI regulation, meaning that keeping track of new and evolving AI regulations at the state and federal level remains an ongoing process.

Connecticut Senate Bill 10 would ban health carriers from using AI or any algorithm for clinical decisions instead of a review by a clinical peer. From its introduction in early January, this bill has been extensively reviewed by various committees and amended, passing the House and Senate with amendments and awaiting action from Governor Lamont.

Nebraska Legislative Bill 77 was signed into law by Governor Pillen on June 4th, ensuring transparency in prior authorization by banning AI as the sole basis for denying, delaying, or modifying health care services. It also requires utilization review (UR) agencies to disclose the use of AI algorithms and prohibits compensation based on the volume of denials.

Nevada Senate Bill 128 would prohibit the use of AI to deny, modify, or reduce care that is included in a prior authorization request, but would allow insurers to us AI as a tool to for automatic approvals. This bill has also seen multiple revisions and committee reviews, but has passed both chambers and has been sent to Governor Lombardo.

Texas Senate Bill 815 would prohibits UR agencies from using AI as the sole basis to deny or delay care to enrollees. However, AI could be used for administrative support or fraud detection purposes. This bill has passed both chambers and has been sent to Governor Abbott.

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