Maine · Senate Paper · 132nd Maine Legislature, First Special Session (2025)
LD1301
An Act to Prohibit the Use of Artificial Intelligence in the Denial of Health Insurance Claims

Status ● Failed Effective N/A Passage Likelihood N/A

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

How Is This Bill Enforced

Enforcement Authority
The bill amends Title 24-A (Insurance Code) and is subject to oversight by the Maine Bureau of Insurance. No private right of action is created by this bill. Enforcement would be through the existing regulatory framework governing health insurance carriers under Maine law.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
The bill does not specify monetary penalties, damages, or remedies. Enforcement would operate through the existing Maine Insurance Code regulatory framework, which includes administrative enforcement by the Superintendent of Insurance.

What This Bill Requires

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text
Analysis & Obligations
24-A MRSA § 4304(8)
Use of artificial intelligence in utilization review
Deployer

(8) Use of artificial intelligenceArtificial intelligenceFor purposes of this subsection, "artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.24-A MRSA § 4304(8). Beginning January 1, 2026, the use of artificial intelligenceArtificial intelligenceFor purposes of this subsection, "artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.24-A MRSA § 4304(8) by a carrierCarrierA carrier, or any 3rd party contracted by a carrier, that uses artificial intelligence to make medical review or utilization review determinations relating to the approval, denial, delay, modification or adjustment of coverage for services under a health plan.24-A MRSA § 4304(8), or by any 3rd party contracted by a carrierCarrierA carrier, or any 3rd party contracted by a carrier, that uses artificial intelligence to make medical review or utilization review determinations relating to the approval, denial, delay, modification or adjustment of coverage for services under a health plan.24-A MRSA § 4304(8), to make medical review or utilization review determinations relating to the approval, denial, delay, modification or adjustment of coverage for services under a health plan is governed by this subsection.

(8)(A)(1) 1 Determinations derived from the use of artificial intelligenceArtificial intelligenceFor purposes of this subsection, "artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.24-A MRSA § 4304(8), including algorithms and other software tools, must: (1) Be based upon an enrollee's medical history, as applicable, and individual clinical circumstances as presented by the requesting provider, as well as other relevant clinical information contained in the enrollee's medical record, and not supplant provider decision making;

(8)(A)(2) 2 Not directly or indirectly discriminate against an enrollee on the basis of race, color, religion, national origin, ancestry, age, sex, gender, gender identity, gender expression, sexual orientation, present or predicted disability, expected length of life, degree of medical dependency, quality of life or other health conditions;

(8)(A)(3) 2 Be fairly and equitably applied; and

(8)(A)(4) 3 Be open to inspection, and the use of artificial intelligenceArtificial intelligenceFor purposes of this subsection, "artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.24-A MRSA § 4304(8) must be disclosed in the written policies and procedures to an enrollee.

(8)(A) trailing 4 Use of artificial intelligenceArtificial intelligenceFor purposes of this subsection, "artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.24-A MRSA § 4304(8) pursuant to this paragraph must be governed by policies that establish accountability for performance, use and outcomes that are reviewed and revised for accuracy and reliability. Data under this paragraph may not be used beyond its intended and stated purpose. Data under this paragraph must be protected from risk that may directly or indirectly cause harm to the enrollee.

(8)(B) 5 A denial, delay, modification or adjustment of health care services based on medical necessity must be made by a clinical peer competent to evaluate the specific clinical issues involved in the health care services requested by the enrollee's provider. The clinical peer making the medical review or utilization review determination shall consider the enrollee's provider's recommendation and the enrollee's medical history, as applicable, and individual clinical circumstances.

(8) definition For purposes of this subsection, "artificial intelligenceArtificial intelligenceFor purposes of this subsection, "artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.24-A MRSA § 4304(8)" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.

This section establishes the complete regulatory framework for carrier use of AI in medical and utilization review determinations. It operates on two axes: paragraph A governs how AI-derived determinations must be made (individualized clinical data, non-discrimination, fairness, transparency, data governance), and paragraph B imposes a human clinical peer requirement for any adverse determination based on medical necessity.

Paragraph A's trailing sentences create additional governance requirements — carriers must maintain policies establishing accountability for AI performance, use, and outcomes, must review and revise AI tools for accuracy and reliability, must limit data use to stated purposes, and must protect data from risks of harm. These governance obligations are distinct from the substantive determination requirements in subparagraphs (1)–(4).

Compliance actions 5 items
1
CarriersCarrierA carrier, or any 3rd party contracted by a carrier, that uses artificial intelligence to make medical review or utilization review determinations relating to the approval, denial, delay, modification or adjustment of coverage for services under a health plan.24-A MRSA § 4304(8) (and third parties contracted by carriersCarrierA carrier, or any 3rd party contracted by a carrier, that uses artificial intelligence to make medical review or utilization review determinations relating to the approval, denial, delay, modification or adjustment of coverage for services under a health plan.24-A MRSA § 4304(8)) must ensure that AI-derived medical review or utilization review determinations are based on the enrollee's medical history, individual clinical circumstances as presented by the requesting provider, and other relevant clinical information in the enrollee's medical record. AI determinations must not supplant provider decision making.
HC-01.3
2
CarriersCarrierA carrier, or any 3rd party contracted by a carrier, that uses artificial intelligence to make medical review or utilization review determinations relating to the approval, denial, delay, modification or adjustment of coverage for services under a health plan.24-A MRSA § 4304(8) must ensure that AI-derived utilization review determinations do not directly or indirectly discriminate against an enrollee on the basis of race, color, religion, national origin, ancestry, age, sex, gender, gender identity, gender expression, sexual orientation, present or predicted disability, expected length of life, degree of medical dependency, quality of life, or other health conditions. Determinations must be fairly and equitably applied.
HC-01
3
CarriersCarrierA carrier, or any 3rd party contracted by a carrier, that uses artificial intelligence to make medical review or utilization review determinations relating to the approval, denial, delay, modification or adjustment of coverage for services under a health plan.24-A MRSA § 4304(8) must ensure that AI tools used in utilization review are open to inspection, and must disclose in their written policies and procedures to enrollees that artificial intelligenceArtificial intelligenceFor purposes of this subsection, "artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.24-A MRSA § 4304(8) is used in coverage determinations.
HC-01.6
4
CarriersCarrierA carrier, or any 3rd party contracted by a carrier, that uses artificial intelligence to make medical review or utilization review determinations relating to the approval, denial, delay, modification or adjustment of coverage for services under a health plan.24-A MRSA § 4304(8) must govern their use of AI in utilization review under policies that establish accountability for AI performance, use, and outcomes, and that are reviewed and revised for accuracy and reliability. Data used by AI in utilization review may not be used beyond its intended and stated purpose. Data must be protected from risk that may directly or indirectly cause harm to the enrollee.
HC-01.4
5
CarriersCarrierA carrier, or any 3rd party contracted by a carrier, that uses artificial intelligence to make medical review or utilization review determinations relating to the approval, denial, delay, modification or adjustment of coverage for services under a health plan.24-A MRSA § 4304(8) must ensure that any denial, delay, modification, or adjustment of health care services based on medical necessity is made by a clinical peer competent to evaluate the specific clinical issues involved in the requested health care services. The clinical peer must consider the enrollee's provider's recommendation and the enrollee's medical history and individual clinical circumstances.
HC-01.1

Passage Likelihood

Failed
Status Failed
Final action Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)

Legislative History

2025-03-25 Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES suggested and ordered printed REFERENCE to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES Ordered sent down forthwith for concurrence
2025-03-25 The Bill was REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES.
2025-03-25 In concurrence. ORDERED SENT FORTHWITH.
2025-04-16 Work Session Held: TABLED
2025-05-08 Work Session Held: TABLED
2025-05-15 Work Session Held: TABLED
2025-05-16 Carry Over Requested
2025-05-19 Carry Over Approved
2025-06-25 CARRIED OVER, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
2026-01-14 Work Session Held
2026-01-14 Voted: ONTP
2026-01-20 Reported Out: ONTP
2026-01-27 Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)

Entry Last Reviewed

2026-05-19
AI generated