Maine · Senate Paper · 132nd Maine Legislature, First Regular Session (2025)
LD955
An Act to Ensure Human Oversight in Medical Insurance Payment Decisions

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

WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
Department of Professional and Financial Regulation, Bureau of Insurance is the primary regulatory authority, with rulemaking and reporting oversight. Enrollees and providers have a right to appeal determinations through existing statutory appeal processes under 24-A MRSA § 4303, subsection 4. No private right of action is created by this bill.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
No specific damages, penalties, or remedies are specified in this bill. Enforcement is through Bureau of Insurance regulatory authority and rulemaking. Enrollees and providers may appeal adverse determinations under existing appeal procedures.

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 § 2436(2-D)
Prohibition on AI-sole claim denials
Deployer

(2-D) 1 For a claim submitted by a health care provider or health care facility with respect to a carrierCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) as defined in section 4301‑A, subsection 3 on or after January 1, 2026, a carrierCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) may not deny a claim based solely on the use of artificial intelligenceArtificial intelligence"Artificial intelligence" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8). For the purposes of this subsection, "artificial intelligenceArtificial intelligence"Artificial intelligence" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8)" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.

This section prohibits health insurance carriers from denying claims submitted by health care providers or facilities based solely on artificial intelligence, effective January 1, 2026. The prohibition is absolute — if a claim is submitted on or after the effective date, the carrier may not use AI as the sole basis for denial. The section provides its own inline definition of artificial intelligence as a computerized system capable of making decisions or recommendations based on algorithms and data analysis. Notably, this section addresses claim payment denials specifically, while Section 2 (§ 4304(8)) addresses the broader utilization review and coverage determination context.

Compliance actions 1 item
1
CarriersCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) may not deny a claim submitted by a health care provider or health care facility based solely on the use of artificial intelligenceArtificial intelligence"Artificial intelligence" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8).
HC-01.1
24-A MRSA § 4304(8)
AI restrictions in utilization review and physician review requirement
Deployer

(8) sentence 1 2 Beginning January 1, 2026, a carrierCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) may not make medical review or utilization review determinations relating to the approval, denial or adjustment of coverage for services under a health plan based solely on the use of artificial intelligenceArtificial intelligence"Artificial intelligence" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8).

(8) sentences 2–3 3 Before a carrierCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) denies benefits or reduces payment for services using artificial intelligenceArtificial intelligence"Artificial intelligence" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8), the carrierCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) shall conduct a utilization review done by a physician who is licensed in this State, including a review of the medical necessity of the services, the professional judgment of the enrollee's provider and the impact of any denial of benefits or reduction in payment on the enrollee's health outcomes. An enrollee or provider has the right to appeal any determination under this subsection in accordance with section 4303, subsection 4.

(8) sentence 4 For the purposes of this subsection, "artificial intelligenceArtificial intelligence"Artificial intelligence" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8)" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.

This section is the core operative provision of the bill. It prohibits carriers from making medical review or utilization review determinations — including approvals, denials, and adjustments of coverage — based solely on artificial intelligence, effective January 1, 2026. Beyond the prohibition, it imposes an affirmative obligation: before a carrier denies benefits or reduces payment using AI, a Maine-licensed physician must conduct a utilization review that includes assessment of medical necessity, the enrollee's provider's professional judgment, and the impact of any denial or reduction on the enrollee's health outcomes. The section also preserves enrollees' and providers' right to appeal any determination under existing appeal procedures at § 4303(4).

Compliance actions 2 items
2
CarriersCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) may not make medical review or utilization review determinations relating to the approval, denial, or adjustment of coverage for services under a health plan based solely on artificial intelligenceArtificial intelligence"Artificial intelligence" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8).
HC-01.1
3
CarriersCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) must, before denying benefits or reducing payment for services using AI, conduct a utilization review by a Maine-licensed physician that includes review of the medical necessity of the services, the professional judgment of the enrollee's provider, and the impact of any denial or reduction on the enrollee's health outcomes. Enrollees and providers have the right to appeal any such determination.
HC-01.1
24-A MRSA § 4304(9)
Rulemaking authority

(9) The bureau shall adopt rules to implement the provisions of subsection 8 related to the use of artificial intelligenceArtificial intelligence"Artificial intelligence" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) by a carrierCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8). Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

This section directs the Bureau of Insurance to adopt rules implementing the AI utilization review restrictions in subsection 8. The rules are classified as routine technical rules under Maine's Administrative Procedure Act, meaning they do not require legislative approval. This is a rulemaking authorization that does not impose a direct compliance obligation on carriers.

24-A MRSA § 4304(10)
Quarterly and annual reporting on AI use
Deployer

(10) 4 Beginning April 15, 2026 and quarterly thereafter, a carrierCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) shall report to the bureau on the number of denials of coverage under subsection 8, the outcome of the review conducted by a licensed physician in accordance with subsection 8 and the number of appeals of a determination under subsection 8 and the outcome of those appeals. Beginning February 1, 2027 and annually thereafter, the bureau shall submit a report summarizing the quarterly reports from carriersCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) to the joint standing committee of the Legislature having jurisdiction over health insurance matters.

This section imposes a quarterly reporting obligation on carriers and an annual reporting obligation on the Bureau of Insurance. Beginning April 15, 2026, carriers must report to the Bureau on the number of AI-related coverage denials, outcomes of physician reviews, and the number and outcomes of appeals. Beginning February 1, 2027, the Bureau must submit an annual summary of these quarterly reports to the legislative committee with jurisdiction over health insurance. The reporting requirement creates a structured ongoing compliance obligation for carriers and a transparency mechanism for the legislature.

Compliance actions 1 item
4
CarriersCarrier"Carrier" as defined in section 4301‑A, subsection 3.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) must report quarterly to the Bureau of Insurance, beginning April 15, 2026, on the number of AI-related coverage denials, the outcome of physician reviews, and the number and outcome of appeals of AI-related determinations.
R-03.1
Sec. 5 (uncodified)
Rulemaking deadline

No later than November 1, 2025, the Department of Professional and Financial Regulation, Bureau of Insurance shall adopt rules relating to the use of artificial intelligenceArtificial intelligence"Artificial intelligence" means a computerized system capable of making decisions or recommendations based on algorithms and data analysis.24-A MRSA § 2436(2-D); 24-A MRSA § 4304(8) as required by the Maine Revised Statutes, Title 24-A, section 4304, subsection 9.

This uncodified section sets a deadline of November 1, 2025 for the Bureau of Insurance to adopt the rules required by § 4304(9). This imposes a government-facing deadline rather than a carrier obligation.

Passage Likelihood

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

Legislative History

2025-03-06 Received by the Secretary of the Senate on March 6, 2025 and REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES pursuant to Joint Rule 308.2
2025-03-21 CARRIED OVER, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.
2025-04-16 Work Session Held: TABLED
2025-05-08 Work Session Held
2025-05-08 Voted: ONTP
2025-05-14 Reported Out: ONTP
2025-05-20 Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)

Entry Last Reviewed

2026-05-19
AI generated