TAHP Testimony Opposing SB 815 (AI in Health Insurance) Committee Substitute 2-27-25

TAHP supports thoughtful regulation of AI in health care, and while we intended to take a neutral position on the filed bill, we have significant concerns with the proposed substitute and the bill’s expansion far beyond the regulation of AI. The substitute creates new provisions that will interfere with protections against fraudulent or inadvertent upcoding in health care billing—a serious problem in Texas that costs taxpayers, employers, and families.

TAHP strongly agrees that no plan should solely rely on AI to deny prior authorization or utilization review requests. In fact, Texas already has some of the strongest patient-protection laws in the country, requiring a qualified Texas-licensed physician to personally review and make any denial decisions. As the Texas Department of Insurance (TDI) has noted, any use of AI to deny claims would already be a violation of existing laws, and TDI is not aware of any health plans operating outside of those requirements.

Click here to view TAHP’s testimony opposing SB 815’s committee substitute.

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