Applies to a health care service plan or disability insurer, including specialized health care service plan or specialized health insurer, that uses AI for utilization review.
Including use of an algorithm or other software tool used for utilization review.
Or that contracts with or otherwise works through an entity that uses that type of tool.
Artificial intelligence, including an algorithm, or other software tool, used for the purpose of utilization review or utilization management functions is to be compliant.
Plan must ensure compliance with specified requirements, including that the AI, algorithm, or other software tool bases its determination on specified information.
Must also ensure that the AI used is fairly and equitably applied, as specified.
Imposes a State-mandated local program because willful violation would be a crime.
Legislative History
On Feb. 13, 2024, bill introduced in Senate; on May 23, 2024, bill passed in Senate.
On May 24, 2024, bill introduced in Assembly; on Aug. 30, 2024, bill passed Assembly.
On Aug. 31, 2024, bill amendments concurred; on Sep. 11, bill delivered to governor.
Effectiveness
No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
Sep. 28, 2024 CAL LEG Governor Approved
On Sep. 28, 2024, CAL LEG reported governor approved SB-1120, assigned Ch. 879.
Regulators
CAL LEG
Entity Types
Ins
Reference
Ch 879, 9/28/2024; Bill, SB1120, 9/11/2024; Citation: CAL INS 2-2-1-1-10123.135; CAL LEG 2-2.2-5-1367.01;
