Senate Bill 63

"This act: (1) establishes minimum standards for the use of artificial intelligence (AI) by health insurers to determine if health care services requested for an insured person should be covered, including that the decision should be based on the insured’s medical history, unique clinical circumstances, and clinical information; (2) requires insurers to annually certify to the Department of Insurance of the State of Alabama that such AI systems do not use group datasets and are applied fairly and indiscriminately to all insureds; (3) requires licensed health care professionals who are competent to evaluate a recommendation made by AI to make the decision to deny, delay, or modify a prior authorization request; (4) requires insurers to prominently disclose that AI is used in coverage decisions, ensures these AI systems are periodically reviewed for accuracy and reliability, and ensures patient data is not used beyond authorized manners; (5) authorizes the department to investigate, and require a response of, insurers reasonably believed to be violating this act; and (6) upon an unsatisfactory response and a hearing thereon, authorizes the department to impose a corrective compliance plan on the insurer, and in the case of frequent violations that indicate a general business practice, impose an administrative fine of up to $5,000 or suspend or revoke the insurer’s certificate of authority.