TX HB4635

Requires insurers and health maintenance organizations (HMOs) to provide written disclosure to claimants when a claim denial is based on a determination made by artificial intelligence

Mandates the disclosure include three specific elements: notification that AI was used in the denial decision, the basis for the AI's determination, and instructions on how to appeal the denial

Defines "artificial intelligence" as an engineered or machine-based system that can infer from inputs how to generate outputs influencing physical or virtual environments

Applies only to claims submitted on or after the effective date

Takes effect September 1, 2025