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Oklahoma Legislature· SB 1967Second Reading referred to Technology and Telecommunications

An act relating to the Hospital and Medical Services 7 Utilization Review Act, the official text

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1                           STATE OF OKLAHOMA

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2                  2nd Session of the 60th Legislature (2026)

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3 SENATE BILL 1967                By: Mann
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6                               AS INTRODUCED

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7   An Act relating to the Hospital and Medical Services

7   Utilization Review Act; amending 36 O.S. 2021,

8   Section 6552, which relates to definitions; defining

8   terms; requiring certain utilization review

9   organization or insurer that uses certain artificial

9   intelligence tool to adhere to certain requirements;

10  prohibiting certain tool to deny, delay, or modify

10  certain services; requiring certain determinations to

11  be made by certain licensed professional; requiring

11  certain health benefit plan to notify certain

12  enrollees about use of certain tools; requiring

12  health benefit plan to submit certain tools to the

13  Insurance Commissioner; requiring Commissioner to

13  implement certain processes; requiring certain

14  clinical peer reviewer to document certain

14  utilization review; providing for certain fines and

15  fees; requiring Commissioner to promulgate rules and

15  regulations; providing for codification; and

16  providing an effective date.

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19 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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20  SECTION 1.      AMENDATORY  36 O.S. 2021, Section 6552, is

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21 amended to read as follows:
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22  Section 6552. As used in the Hospital and Medical Services

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23 Utilization Review Act:
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    Req. No. 2293                                              Page 1
1   1. "Utilization review" means a system for prospectively,

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2 concurrently and retrospectively reviewing the appropriate and
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3 efficient allocation of hospital resources and medical services
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4 given or proposed to be given to a patient or group of patients. It
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5 does not include an insurer's normal claim review process to
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6 determine compliance with the specific terms and conditions of the
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7 insurance policy
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8   "Artificial intelligence" means a computer system, program, or

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9 set of algorithms capable of performing tasks on producing outposts
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10 that imitate intelligent human behaviors;
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11  2. "Private review agent" means a person or entity who performs

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12 utilization review on behalf of:
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13  a. an employer in this state, or

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14  b. a third party that provides or administers hospital

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15                 and medical benefits to citizens of this state,

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16                 including, but not limited to:

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17                 (1) a health maintenance organization issued a

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18                  license pursuant to Section 2501 et seq. of Title

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19                  63 of the Oklahoma Statutes, unless the health

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20                  maintenance organization is federally regulated

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21                  and licensed and has on file with the Insurance

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22                  Commissioner a plan of utilization review carried

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23                  out by health care professionals and providing

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    Req. No. 2293                                  Page 2
1                      for complaint and appellate procedures for

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2                      claims, or

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3                  (2) a health insurer, not-for-profit hospital service

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4                      or medical plan, health insurance service

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5                      organization, or preferred provider organization

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6                      or other entity offering health insurance

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7                      policies, contracts or benefits in this state

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8   "Artificial intelligence tool" means a tool that uses an

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9 artificial intelligence or algorithm for the purpose of utilization
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10 review based in whole or in part on medical necessity;
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11  3. "Utilization review plan" means a description of utilization

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12 review procedures;
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13  4. "Commissioner" means the Insurance Commissioner;

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14  5. 4. "Certificate" means a certificate of registration granted

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15 by the Insurance Commissioner to a private review agent; and
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16  6. 5. "Health care provider" means any person, firm,

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17 corporation or other legal entity that is licensed, certified, or
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18 otherwise authorized by the laws of this state to provide health
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19 care services, procedures or supplies in the ordinary course of
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20 business or practice of a profession;
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21  6. "Private review agent" means a person or entity that

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22 performs utilization review on behalf of:
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23  a. an employer in this state, or

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    Req. No. 2293                                          Page 3
1   b. a third party that provides or administers hospital

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2                  and medical benefits to citizens of this state,

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3                  including, but not limited to:

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4                  (1) a health maintenance organization issued a

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5                  license pursuant to Section 6901 et seq. of this

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6                  title, unless the health maintenance organization

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7                  is federally regulated and licensed and has on

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8                  file with the Insurance Commissioner a plan of

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9                  utilization review carried out by health care

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10                 professionals and providing for complaint and

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11                 appellate procedures for claims, or

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12                 (2) a health insurer, not-for-profit hospital service

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13                 or medical plan, health insurance service

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14                 organization, or preferred provider organization

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15                 or other entity offering health insurance

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16                 policies, contracts or benefits in this state;

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17  7. "Utilization review" means a system for prospectively,

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18 concurrently, and retrospectively reviewing the allocation of
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19 hospital resources and medical services given or proposed to be
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20 given to a patient or group of patients. It does not include an
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21 insurer's normal claim review process to determine compliance with
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22 the specific terms and conditions of the insurance policy;
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23  8. "Utilization review plan" means a description of utilization

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24 review procedures; and
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    Req. No. 2293                                              Page 4
1   9. "Utilization review organization" means the same as defined

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2 in Section 6475.3 of this title.
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3   SECTION 2.         NEW LAW  A new section of law to be codified

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4 in the Oklahoma Statutes as Section 6567 of Title 36, unless there
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5 is created a duplication in numbering, reads as follows:
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6   A. A utilization review organization, disability insurer, or

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7 specialized health insurer that uses an artificial intelligence tool
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8 or contracts with or otherwise works through an entity that uses an
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9 artificial intelligence tool shall ensure that the artificial
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10 intelligence tool:
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11  1. Bases its determination on the following information, as

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12 applicable:
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13  a. an enrollee's medical or other clinical history,

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14  b. individual clinical circumstances as presented by the

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15                 requesting provider, and

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16  c. other relevant clinical information contained in the

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17                 enrollee's medical or other clinical record;

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18  2. Does not base its determination solely on a group dataset;

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19  3. Does not supplant health care provider decision-making;

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20  4. Does not discriminate against enrollees in violation of

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21 state and federal law;
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22  5. Does not use patient data beyond its intended and stated

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23 purpose consistent with the federal Health Insurance Portability and
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24 Accountability Act of 1996, P.L. No. 104-191, as applicable;
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    Req. No. 2293                                                Page 5
1   6. Does not cause harm to the enrollee;

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2   7. Is applied in accordance with any applicable regulations and

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3 guidance issued by the federal Department of Health and Human
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4 Services;
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5   8. Is open to inspection for audit or compliance review by the

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6 Insurance Commissioner;
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7   9. Contains disclosures pertaining to the use and oversight of

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8 the artificial intelligence tool in the written policies and
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9 procedures; and
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10  10. Requires performance use and outcomes to be periodically

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11 reviewed and revised to maximize accuracy and reliability.
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12  B. The artificial intelligence tool shall not deny, delay, or

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13 modify health care services based, in whole or in part, on medical
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14 necessity. A determination of medical necessity shall be made only
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15 by a licensed physician or a licensed health care professional
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16 competent to evaluate the specific clinical issues involved in the
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17 health care services requested by the provider, by reviewing and
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18 considering the requesting provider's recommendation, the enrollee's
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19 medical or other clinical history, and individual circumstances.
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20  C. Any health benefit plan in this state shall notify enrollees

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21 and insureds about the use or lack of use of artificial intelligence
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22 tools in the utilization review process on the accessible Internet
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23 website of such health benefit plan.
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    Req. No. 2293                                              Page 6
1   D. A clinical peer reviewer who participates in a utilization

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2 review process for a health benefit plan that initially uses
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3 artificial intelligence tools for a utilization review shall open
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4 and document the utilization review of the individual clinical
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5 records or data prior to issuing an adverse determination.
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6   E. A violation of this act by a health benefit plan or clinical

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7 peer reviewer shall be subject to one or more of the following
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8 penalties, not to exceed in aggregate Five Hundred Thousand Dollars
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9 ($500,000.00) for a health benefit plan or One Hundred Thousand
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10 Dollars ($100,000.00) for a clinical peer reviewer, in a calendar
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11 year:
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12  1. Suspension or revocation of a license;

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13  2. Refusal, for a period not to exceed one (1) year, to issue a

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14 new license; or
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15  3. A fine not more than Ten Thousand Dollars ($10,000.00) for

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16 each willful violation.
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17  F. Penalties pursuant to this act shall be in addition to any

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18 other remedies or penalties that may be imposed under any other
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19 applicable state or federal law.
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20  G. This act shall apply to utilization review or utilization

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21 management functions that prospectively, concurrently,
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22 retrospectively review requests for covered health care services.
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23  H. The Commissioner may promulgate rules and regulations

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24 pursuant to the provisions of this act.
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    Req. No. 2293                                             Page 7
1   SECTION 3. This act shall become effective November 1, 2026.

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    Req. No. 2293                             Page 8
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