TX SB1411

Prohibits health benefit plan issuers, physicians, and health care providers from using clinical AI-based algorithms to discriminate based on race, color, national origin, gender, age, vaccination status, or disability in decision-making

Requires health benefit plan issuers to publicly disclose on their website and provide written notice to enrollees, physicians, and providers about whether they use AI algorithms in utilization review processes

Mandates that issuers submit AI algorithms and training data sets to the Texas Department of Insurance for certification that they minimize discrimination risk and follow evidence-based clinical guidelines

Requires a specialist to review an individual's clinical records and document the utilization review before any adverse determination is made when AI algorithms are used in initial reviews

Establishes enforcement penalties for physicians and health care providers who violate the AI discrimination provisions, including fines up to $5,000 per violation ($10,000 for intentional violations), license suspension or revocation, with a $50,000 annual cap on fines

Takes effect September 1, 2025, with new requirements applying to health benefit plans delivered or renewed on or after January 1, 2026