AR HB1297

Healthcare insurers must disclose AI algorithm details starting January 1, 2026, including algorithm criteria, training datasets, known biases, and performance limitations through publicly accessible "applied model cards" to the Insurance Commissioner, network providers, enrollees, and on their website

AI-based algorithms cannot be the sole basis for denying, delaying, or modifying healthcare services; all adverse determinations must be reviewed and signed by a licensed physician with relevant experience who has examined the individual's clinical records

Insurers must conduct biannual quality assurance testing of AI systems, submit results to the Insurance Commissioner at least semiannually, and publish results on a public website within 30 days

Noncompliance penalties include civil money penalties up to $25,000 per violation plus $10,000 per week of ongoing noncompliance, suspension of enrollment activities, and compensation to harmed providers or enrollees

Aggrieved parties may bring civil action for declaratory or injunctive relief after providing 90 days written notice to correct violations, with prevailing parties eligible for attorney's fees and costs