Correctional Services - Diminution of a Term of Confinement
House Bill 697 would require Maryland health insurance carriers to file quarterly reports with the Maryland Insurance Commissioner on their use of artificial intelligence and automated decision-making systems. The reports would have to describe when and why these systems are used, who trains them, what data and methods are used, what guidance they rely on, and what bias-testing and mitigation steps are taken. The bill is aimed at increasing transparency around how insurers use AI in coverage and claims-related decisions.
The bill also expands existing quarterly reporting requirements for carriers under Maryland’s health insurance grievance and adverse decision laws. Carriers would need to report more detailed information about claims, grievances, adverse decisions, reconsiderations, emergency and non-emergency cases, and call-center performance. Several of these disclosures would be broken down by ZIP code, race, ethnicity, gender, and age, and the bill adds new reporting on the monetary value of grievance decisions and adverse decisions. The measure takes effect October 1, 2025.
HB0697 would amend the Insurance Article by adding a new section on AI and automated decision-making reporting and by revising § 15-10A-06 to broaden carrier reporting obligations. It would not directly regulate whether insurers may use AI, but it would impose new disclosure duties on carriers and give the Insurance Commissioner more data to monitor insurer practices, grievance outcomes, and potential bias or inequities in decision-making. The bill would also require the Commissioner to compile an annual summary report for the Governor and General Assembly.
The bill appears generally supportive of stronger oversight and transparency in health insurance, especially around the use of artificial intelligence in decisions affecting members. The sponsor list suggests broad interest among delegates, and the bill’s framing indicates a policy focus on accountability, fairness, and data collection rather than prohibition. No committee transcript or vote record was provided, so there is no recorded floor or committee debate to indicate formal opposition or support beyond the bill’s introduction.
The main points of contention likely involve the scope and burden of the new reporting requirements. Carriers may object to the administrative and compliance costs of quarterly AI disclosures, expanded grievance reporting, and detailed demographic breakdowns, while supporters are likely to argue that these disclosures are necessary to detect bias, understand adverse decisions, and improve consumer protections. Another possible point of debate is the inclusion of race, ethnicity, gender, and age data, which may raise privacy, data-quality, and implementation concerns even as it is intended to identify disparities.