House Bill 1240, introduced in Maryland on February 12, 2025, aims to regulate the use of artificial intelligence (AI) in health care decision-making by insurance carriers. The bill seeks to ensure that AI technologies do not compromise the quality of patient care in favor of cost-cutting measures.

Key provisions of the bill include a prohibition on carriers using AI solely to reduce costs at the expense of patient care quality, delays, or coverage denials. Additionally, starting in 2026, carriers that utilize AI must publish annual reports on their websites detailing critical data about AI-driven health care decisions. This data will include thresholds for human review of decisions, rates of overturned decisions, denial rates, and criteria for approvals or denials. The bill mandates that this information remains publicly accessible.

Moreover, the legislation requires carriers to undergo annual third-party audits to assess whether AI decisions align with established medical care standards. This provision aims to enhance transparency and accountability in the use of AI technologies in health care.

The introduction of House Bill 1240 has sparked discussions among stakeholders, including health care providers, insurance companies, and patient advocacy groups. Proponents argue that the bill is essential for protecting patient rights and ensuring that AI tools enhance rather than hinder care quality. Critics, however, express concerns about the potential burden of compliance on smaller carriers and the implications for innovation in health care technology.

The bill's implications are significant, as it addresses growing concerns about the ethical use of AI in health care, a sector increasingly reliant on technology. If passed, House Bill 1240 could set a precedent for similar regulations in other states, influencing how AI is integrated into health care systems nationwide. The next steps for the bill include committee reviews and potential amendments before it can be voted on by the full legislature.