IL HB0035

Prohibits health insurance issuers from denying, reducing, or terminating coverage or benefits based solely on AI system or predictive model decisions without meaningful human review

Requires any AI-driven adverse coverage decision to be reviewed by an individual with authority to override the AI system; clinical peers must conduct reviews for adverse determinations under the Managed Care Reform and Patient Rights Act

Grants the Illinois Department of Insurance regulatory oversight authority over health insurers' use of AI systems, including the ability to investigate AI development, implementation, outcomes, and governance practices

Authorizes the Department to adopt rules requiring insurers to disclose AI system usage to consumers, including notice before AI use, explanations after adverse decisions, information about how personal data informs decisions, and appeal instructions

Holds health insurance issuers responsible for ensuring all employees, agents, contractors, and third parties comply with the Act's AI requirements in administering coverage