[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6307055,"mediaKeyId","2435479-88f792cad97f1256c1880284fada94eb","parentId",2435479,"title","Senate panel debates bill to limit use of AI in insurer coverage denials; sponsors, providers and plans disagree on scope","audioSeconds",2520,"startMs",4765000,"endMs",7285000,"viewUrl","/Search/View?dp=1&key=2435479-88f792cad97f1256c1880284fada94eb&start=4765&end=7285","thumbnailUrl","https://assets.pipeline.soar.com/2435479-88f792cad97f1256c1880284fada94eb/thumbnail_4765000.jpg","articleUrl","/articles/6307055/Texas/Senate-panel-debates-bill-to-limit-use-of-AI-in-insurer-coverage-denials-sponsors-providers-and-plans-disagree-on-scope","mediaUrl","https://secure.pipeline.soar.com/6307055-eab212757cd3eb0822841b0ad3265e01/orig.mp4?Expires=1770448411&Signature=RZYLdfgrh-82ncSntqDblp40BgcYkcAxic4w2PbR22matscn7tpJV8dxKVoog~kUq1P8GMBTDXCQvuT7-SaXpDpg1zK5O~Nfa0ymJbPXsTp~9cmg0jYpnC~z9fGqgykZZMIbtVHuT~N62uiMJdRQlK92fM5OSy2VWEHsMj-NvtbRGfKLW6EPNxE6wk5uKI3RtoxtxBdlmE6LyY03Ex3uOJcJb9cNwnxfb8eIEoof3COqnVwVEHnogQXAf7Zefrcpc1kzKGXPldr0N0MvdJb988SqsnPZKuqI5zpVMphw-dzohhyM548EwyPB30PbXZgn-wJohVt8PRDDE6gRiNp-Lg__&Key-Pair-Id=KUT5TJCACFTXG","author","Texas State Legislature","date","2025-02-27T00:00:00Z","article","A heated debate unfolded in the Senate Business & Commerce Committee over Senate Bill 815, a substitute that would prohibit insurers from using artificial intelligence algorithms as the sole basis to deny, delay or modify health-care services and would require disclosure when an insurer uses AI in claims decisions.

Senator Charles Schwartner, the bill's sponsor, opened the discussion by saying: \"Insurers are deploying artificial intelligence that's focused on their bottom line, in my opinion, over patients' well-being.\" The substitute expands the statutory definition of \"adverse determination\" to include downcoding and requires a human reviewer for medical necessity decisions.

Why it matters: The substitute targets the role of algorithmic tools in utilization review, prior authorization and claims processing. Providers, patient advocates and physicians argued the measure is needed because modern AI can accelerate denials and downcoding in ways that reduce access to care; health-plan representatives countered that existing law already requires licensed clinicians to review denials and that conflating claims-payment disputes with coverage denials would impede fraud detection and routine claims adjudication.

Key testimony
- For patients and physicians: Dr. Zeke Silva of the Texas Medical Association said the bill protects medical decision-making and patient safety: \"We've had laws as mentioned protecting patients from these particular, actions for many, many decades.\" Catherine McClain of the Texas Coalition for Patients said transparency about AI use is essential because reports suggest AI is increasingly used to delay or deny claims.

- For plans and insurers: Jamie Dudensing, CEO of the Texas Association of Health Plans, said the association was neutral on the introduced bill but opposed the committee substitute because it \"changes the definition of adverse determination\" and would move billing disputes (for example, coding disagreements and downcoding) into a coverage appeals framework. Dudensing told the committee that \"state law requires Texas licensed health care professionals to review claims denials\" and asserted that outlawing certain automated tools would hamper fraud, waste and abuse detection.

Policy tradeoffs and fiscal concerns: Committee members debated whether the substitute would force a fundamental rewrite of existing Medicaid managed care organization (MCO) contracts or the state's approach to adjudicating billing disputes. Senator Schwartner and supporters said the measure protects patients from automated, large-scale denials; committee members with Medicaid oversight responsibilities warned the fiscal implications could be sizable and requested more time to evaluate whether the substitute would require rebidding or renegotiation of MCO contracts.

Committee action: After several hours of testimony and cross-examination, the panel closed public testimony on SB 815 and left the bill pending for further review and drafting.","mediaType","Video","parentTitle","Senate Committee on Business and Commerce (Part II) February 27, 2025","oneSentenceSummary","A Senate committee debated a substitute to Senate Bill 815 that would bar insurers from using AI as the sole basis to deny, delay or modify covered health-care services and would require disclosure when AI is used.","taxTitle","Senate, Legislative, Texas","taxId",16215,"location","Texas","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6307060,"Senate panel examines measure to publish taxpayer-funded nonprofit contracts; authors seek refinements",1893,2782000,4675000,"/Search/View?dp=1&key=2435479-88f792cad97f1256c1880284fada94eb&start=2782&end=4675","https://assets.pipeline.soar.com/2435479-88f792cad97f1256c1880284fada94eb/thumbnail_2782000.jpg","/articles/6307060/Texas/Senate-panel-examines-measure-to-publish-taxpayer-funded-nonprofit-contracts-authors-seek-refinements","https://secure.pipeline.soar.com/6307060-f003b9fbbf4e25df51d9af818fbe9963/orig.mp4?Expires=1770448411&Signature=F3K5fTEUKwIcl41dIGSbSRcf3mMpVEVQTld51NiFnLvg1xvX8D06GfRCzCAeBlOycPhiIamwyhPVLUYU2qJZMnBRb6QlcfkrkqJCO1XNSkWmM0HRqavPeoXCUGpqeIARHEZl-qsKE3kHEU6cx38tvDPUeX104ud2mFxwfGxq4VpHqspQtx1EL7zXvhWsGlXu5GjyIqKzO2aDqCj0u9rqyMFFmSVkwTM3vh1WXFJ~JXvBIjR-jFHFXfTZDC9sGjKw2nntyBVVt5DFz2pU25VCZFlyHDbKLEZDGQGR0~8HDU3kIMIpdQmN4GEZI3ITLh-NBUO0QasVbxwSgl2GVl8cTA__&Key-Pair-Id=KUT5TJCACFTXG","The Senate Business & Commerce Committee considered Senate Bill 504, a bill that would expand public reporting requirements when political subdivisions contract with nonprofit corporations. The author told the committee the bill aims to give taxpayers \"line of sight\" into how public dollars are used when governments contract with nonprofits.

Why it matters: The bill would require greater public disclosure about nonprofit recipients of government funds, the bill author said, to ensure taxpayer dollars are spent as intended. Witnesses who supported the bill urged stronger transparency; others warned that the proposed thresholds and the required disclosures could have unintended consequences for hospital districts, universities and charities that partner with government.

Key points from testimony
- Purpose and scope: Author Senator Kolkhorst said the bill is intended to prevent taxpayer funds from becoming opaque when funneled through nonprofit contractors and that the committee substitute exempts nonprofits that operate critical infrastructure such as electrical co-ops, ERCOT and water utilities.

- Thresholds and privacy concerns: Several faith-based and charitable organizations, including Jennifer Allman of the Texas Catholic Conference and John Litzler of the Baptist General Convention, supported transparency but urged raising the income/salary threshold and limiting disclosure to positions paid with government funds. Allman recommended raising the median threshold to around $100,000 to avoid exposing low-paying mission-driven roles.

- Hospital and academic concerns: Maureen Milligan of Teaching Hospitals of Texas said public hospital districts routinely operate in open board meetings and file public records; she warned the bill as drafted could make hospital contractors less competitive and create a \"chilling\" effect on hiring and retention if operational budgets and individual salaries had to be published.

- Existing reporting and statutes: Witnesses noted nonprofits already file IRS Form 990 and that local-government disclosure statutes (disclosure of interested parties at certain contract thresholds) exist; some speakers suggested aligning any new reporting with existing federal and state filings to avoid duplication.

Process and next steps: The committee accepted public testimony, heard a mix of supportive and cautionary comments, and left the bill pending for further drafting; the author asked to work with stakeholders on thresholds, carve-outs and the mechanics of public disclosure.","Senate Bill 504 would increase disclosure of taxpayer dollars sent to nonprofits working with political subdivisions. Sponsors and opponents at the hearing generally supported transparency but debated thresholds, scope and potential competitive harms for hospitals and other entities.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6307065,"Senate committee hears wide-ranging testimony on Senate Bill 6 aimed at large loads and grid planning",2098,672000,2770000,"/Search/View?dp=1&key=2435479-88f792cad97f1256c1880284fada94eb&start=672&end=2770","https://assets.pipeline.soar.com/2435479-88f792cad97f1256c1880284fada94eb/thumbnail_672000.jpg","/articles/6307065/Texas/Senate-committee-hears-wide-ranging-testimony-on-Senate-Bill-6-aimed-at-large-loads-and-grid-planning","https://secure.pipeline.soar.com/6307065-ba8ee42ebdbc3d7288d166f4571da12a/orig.mp4?Expires=1770448411&Signature=AzOfUlfnnjt-ebyHkB46nRgZplR0tmzqbd9R-C67~9T978Xe7eGwoFAk8eoalH-DeP2tbfg3ooA-a4yJszA7hmvbNoZ9USGKM-hAdZG1Xc3MUPqM9Tr6l3sbstvecDYOw-C-jujuVfSwMDa0XDt2O9w5oDThKhW9df3kx2RbLULaq10f~2B7ujHifYCi3JYkQSky-Qhqt3yc0wHmI1eRgCOjyf4v005Q0IP3aLdYG7Sn37CROQqUapGQn9MeOUJoSrVc2wVZAAQi4dx7xuYAHnFcbQ~u0AOtmJgHOGA65r3DoHjViX5f~xO7U1Voeyst7juFdDPM8U1etd60KjMhdQ__&Key-Pair-Id=KUT5TJCACFTXG","The Senate Business & Commerce Committee heard several hours of testimony on Senate Bill 6, a measure that would change how very large electricity customers are treated in interconnection, cost allocation and emergency operations.

The bill attracted developers of large data centers, trade groups and utilities, who described a shared interest in clearing ERCOT's interconnection queue and ensuring reliable service while asking for clearer definitions and protections for industry investment. \"First off, I'd like to commend the committee for prioritizing this very nuanced and important topic to ensure greater liability,\" said Lee Bratcher, representing the Texas Blockchain Council.

Why it matters: SB 6 seeks to speed planning and to give ERCOT and the Public Utility Commission clearer tools to identify and remove \"phantom\" requests in the interconnection queue, set a minimum transmission charge for some new large loads, and permit control or shedding of large loads during Emergency Energy Alert (EEA) events. Proponents say the changes will improve visibility into real load growth; critics and some industry witnesses warned about operational risks and investment uncertainty if details are not clarified.

Key points from testimony
- Transmission charge: Several witnesses, including Warren Lascher of the Texas Oil and Gas Association and Katie Coleman of the Texas Association of Manufacturers, asked for a clear, reasonably low floor and for carve-outs for legacy cogeneration. Lascher said the bill \"provides a recommendation for 75 megawatts but allows the commission to set a lower level,\" and requested that 75 MW be treated as a floor rather than a ceiling. Coleman told the committee the proposed minimum transmission rate mixes wholesale and retail concepts and suggested folding the issue into the 4CP study in the bill's section 6.

- Disconnect devices and operational safety: Data center developers and operators, including Michael McNamara of Lansium (developer for the \"Stargate\" Abilene project) and Sarah Axelrod of Crusoe, asked for language that reflects collaborative site planning rather than an abrupt \"kill switch.\" McNamara said a sudden disconnect for a very large load \"could actually cause its own grid reliability issues\" and said the Abilene project plans on-site resources including a 350-megawatt natural-gas backup and a planned 1,000-MW battery with four hours of duration.

- Distinguishing load types and queue clarity: Multiple witnesses urged better ways to separate legitimate new loads from speculative or \"phantom\" entries that clog planning queues. McNamara and Gideon Powell (Cholla Inc.) urged fees or requirements and improved reporting so ERCOT and planners can see which projects are likely to materialize.

- Planning methodology (4CP): Former ERCOT and industry veterans pressed the committee to consider whether the 4CP (four coincident peak) methodology needs revision. Pat Wood and others discussed longer time windows (hours or days rather than 15-minute peaks) and urged legislative clarity to avoid years of stakeholder delay.

Legislative process and next steps: Committee members said staff and members are drafting substitute language. Senator Sarah King asked witnesses to provide specific statutory language edits by the following Monday for staff review.

Voices heard: Proponents included data center builders and operators (Lansium, Crusoe, Switch, Kings Branch Data) and business/electric industry groups (Association of Electric Companies of Texas, Texas Energy Buyers Alliance). Opponents or cautious speakers included observers who argued subsidies and prior interventions have not solved reliability issues and urged market-based solutions. Bill opponents did not register a formal motion but raised policy objections during public comment.

Taper: The committee closed public testimony on SB 6 and left the bill pending for further drafting and stakeholder negotiation.","Witnesses representing data centers, industry groups and utilities told the Senate Business & Commerce Committee they broadly support Senate Bill 6\u00009\u00009but asked for clarifications on minimum transmission charges, disconnect devices and how ERCOT will distinguish \"phantom\" from real loads.","actionData","errors"]

Article not found

Senate panel debates bill to limit use of AI in insurer coverage denials; sponsors, providers and plans disagree on scope

Senate panel examines measure to publish taxpayer-funded nonprofit contracts; authors seek refinements

Senate committee hears wide-ranging testimony on Senate Bill 6 aimed at large loads and grid planning