Minnesota · Senate File · Ninety-Fourth Session
SF3984
Minnesota S.F. No. 3984 — A bill for an act relating to health insurance; prohibiting algorithm or artificial intelligence use during prior authorization request review; amending Minnesota Statutes 2024, section 62A.59, by adding a subdivision

Status ● Introduced Effective Jan 1, 2026 Passage Likelihood L

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

How Is This Bill Enforced

Enforcement Authority
Enforced through existing Minnesota insurance regulatory framework under the jurisdiction of the Commissioner of Commerce. No private right of action is created by this bill. Enforcement is agency-initiated through the Department of Commerce's existing authority over health carriers under Minn. Stat. § 62A.59.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
The bill does not specify penalties or remedies. Enforcement would rely on the existing regulatory framework governing health carriers under Minnesota insurance law, which may include administrative penalties, corrective action orders, or license-related sanctions.

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
Minn. Stat. § 62A.59, subd. 3
Algorithm and artificial intelligence use prohibited
Deployer

subd. 3 1 A health carrier is prohibited from using an algorithm or artificial intelligence program when making a determination to approve or deny a prior authorization request.

effective date This section is effective January 1, 2026, and applies to health plans offered, sold, issued, or renewed on or after that date.

This section adds a new subdivision to Minnesota's existing prior authorization statute, imposing an absolute prohibition on health carriers' use of algorithms or artificial intelligence programs in prior authorization determinations. The prohibition is notable for its breadth — it does not merely require human oversight or prohibit AI as the sole basis for a determination, but rather bars any use of AI or algorithms in the approval or denial process entirely. The provision applies to health plans offered, sold, issued, or renewed on or after January 1, 2026.

The bill does not define "algorithm" or "artificial intelligence program," leaving the scope of the prohibition to be determined by the Department of Commerce through enforcement. This undefined scope could capture a wide range of automated tools, from machine-learning models to simple rule-based decision trees used in claims processing.

Compliance actions 1 item
1
Health carriers must not use any algorithm or artificial intelligence program when making a determination to approve or deny a prior authorization request.
HC-01.1

Passage Likelihood

Low
Status Introduced
Chamber No passage
Committee No action
Majority party Yes
Bipartisan No
Prior session None

Legislative History

2026-02-26 Introduction and first reading
2026-02-26 Referred to Commerce and Consumer Protection
2026-03-02 Author added Boldon

Entry Last Reviewed

2026-05-20
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