North Carolina legislation · 2025-2026 Session
North Carolina H565: Limit Use of AI Medicaid/Commercial Insurance.
Status: Introduced, June 23, 2026
What the bill says
An act to limit the use of artificial intelligence in healthcare billing and claims submission.
From the amended text:
A BILL TO BE ENTITLED AN ACT TO LIMIT THE USE OF ARTIFICIAL INTELLIGENCE IN HEALTHCARE BILLING AND CLAIMS SUBMISSION. The General Assembly of North Carolina enacts: PART I. PROHIBIT THE USE OF ARTIFICIAL INTELLIGENCE IN UTILIZATION REVIEW SECTION 1.(a) G.S. 58-50-61 reads as rewritten: "§ 58-50-61. Utilization review. (a) Definitions. - The following definitions apply in this section, in G.S. 58-50-62, and in Part 4 of this Article: (1) "Artificial intelligence" has the same meaning as the term is defined in section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law No. 115-232, 132 Stat. 1636 (2018). (1)(1a) "Certificate of coverage" includes a policy of insurance issued to an individual person or a franchise policy issued pursuant to G.S. 58-51-90. (1a)(1b) "Clinical peer" means a health care professional who holds an unrestricted license in a state of the United States, in the same or similar specialty, and routinely provides the health care services subject to utilization review. ... (p) Artificial Intelligence. - An artificial intelligence-based algorithm shall not be used as the sole basis to deny a utilization review determination." SECTION 1.(b) The Department of Health and Human Services, Division of Health Benefits (DHB), shall, as soon as practicable, amend DHB's contracts with prepaid health plans to include a prohibition on the …
Sponsors
- Reeder, Timothy (R, 9) · primary sponsor
- Potts, Larry W. (R, 81) · primary sponsor
- Shepard, Phil (R, 15) · primary sponsor
- Huneycutt, Cody (R, 67) · primary sponsor
- Ager, Eric (D, 114)
- Brown, Gloristine (D, 8)
- Brown, Kanika (D, 71)
- Cairns, Celeste C. (R, 13)
- Campbell, Grant L. (R, 83)
- Cervania, Maria (D, 41)
- Greenfield, Julia (D, 100)
- Harrison, Pricey (D, 61)
Latest actions
- : Re-ref Com On Rules and Operations of the Senate
- : Com Substitute Adopted
- : Reptd Fav Com Substitute
- : Re-ref Com On Judiciary
- : Com Substitute Adopted
- : Reptd Fav Com Substitute
- : Sequential Referral To Judiciary Added After Health Care
- : Re-ref to Health Care. If fav, re-ref to Rules and Operations of the Senate
- : Withdrawn From Com
- : Ref To Com On Rules and Operations of the Senate
Votes
- Check Yes, Save Lives. Second Reading (April 30, 2025): 110 yea, 1 nay, passed
Subjects: DATA & RECORDS SYSTEMS, REVENUE DEPT., ORGAN DONATIONS, HEALTH SERVICES, TRANSPORTATION DEPT., ID SYSTEMS, PUBLIC, INFORMATION TECHNOLOGY
Common questions
- What is H565?
- H565 is a bill in the North Carolina Legislature (2025-2026 Session): Limit Use of AI Medicaid/Commercial Insurance.
- What does H565 do?
- In its own words: An act to limit the use of artificial intelligence in healthcare billing and claims submission.
- What is the status of H565?
- Introduced as of June 23, 2026. Latest action: Re-ref Com On Rules and Operations of the Senate (June 23, 2026).
- Who sponsored H565?
- Reeder, Timothy (R, 9), with 11 co-sponsors.
- Where is the official record for H565?
- On the North Carolina Legislature website: https://www.ncleg.gov/BillLookUp/2025/H565
Source: official North Carolina record. Tracked by Delilah, AI for legislation across all 50 states and Congress.