Laws & Statutes › MI › MI-HB-4536
HB-4536
MI · State · USA
MI
USA
● Pending
Proposed Effective Date
2025-06-03
Michigan House Bill No. 4536 — An act to amend 1956 PA 218, entitled "The insurance code of 1956," (MCL 500.100 to 500.8302) by adding section 3406ss
This single-section bill would prohibit health insurers operating in Michigan from using artificial intelligence to deny, modify, or delay insurance claims. The prohibition applies to any insurer that delivers, issues for delivery, or renews a health insurance policy in Michigan. The bill does not define 'artificial intelligence,' does not create a private right of action, and does not specify penalties — enforcement would rely on existing Insurance Code regulatory mechanisms. The bill is notably broad, categorically prohibiting any AI-based claim review that results in an adverse determination, rather than requiring human oversight or imposing conditions on AI use.
Passage Likelihood
Low
Chamber No passage
Committee No action
Majority party Yes
Bipartisan No
Prior session None
Legislative History
2025-06-03 introduced Introduced By Representative Rep. Carrie Rheingans
2025-06-03 committee referral Referred To Committee On Communications And Technology
2025-09-18 committee referral Referred To Committee On Insurance
2026-03-19 committee referral Referred To Committee On Communications And Technology
Mapped Requirements
HC-01 Healthcare AI Decision Restrictions
Official Sources
Full Text ↗
Entry Last Reviewed
2026-03-28
AI generated
Summary

This single-section bill would prohibit health insurers operating in Michigan from using artificial intelligence to deny, modify, or delay insurance claims. The prohibition applies to any insurer that delivers, issues for delivery, or renews a health insurance policy in Michigan. The bill does not define 'artificial intelligence,' does not create a private right of action, and does not specify penalties — enforcement would rely on existing Insurance Code regulatory mechanisms. The bill is notably broad, categorically prohibiting any AI-based claim review that results in an adverse determination, rather than requiring human oversight or imposing conditions on AI use.

Enforcement & Penalties
Enforcement Authority
Enforcement authority is not specified in this bill. The Michigan Department of Insurance and Financial Services (DIFS) has general regulatory authority over insurers under the Insurance Code of 1956 and would likely enforce this provision through existing regulatory mechanisms, including examination and administrative action against licensed insurers.
Penalties
The bill does not specify penalties, damages, or remedies. Enforcement remedies would derive from the existing Insurance Code of 1956 enforcement framework, which includes administrative sanctions, license revocation, and civil penalties available to the Department of Insurance and Financial Services.
Who Is Covered
Compliance Obligations 1 obligation · click obligation ID to open requirement page
HC-01 Healthcare AI Decision Restrictions · HC-01.1 · Deployer · Healthcare
MCL 500.3406ss
Plain Language
Health insurers operating in Michigan are categorically prohibited from using artificial intelligence to deny, modify, or delay any health insurance claim. This goes further than most healthcare AI statutes, which require human oversight of AI-assisted decisions — Michigan's bill prohibits AI-based adverse claim determinations entirely. The term 'artificial intelligence' is not defined in the bill, creating potential ambiguity about whether the prohibition extends to simple algorithmic tools, rules-based automation, or only machine learning systems. Insurers should treat this as a blanket prohibition on using any AI system in the claims review pipeline if the AI output could result in a denial, modification, or delay of a claim.
Statutory Text
Sec. 3406ss. An insurer that delivers, issues for delivery, or renews in this state a health insurance policy shall not deny, modify, or delay a claim based on a review using artificial intelligence.