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Oregon HB 4054 requires insurers to notify providers and offer appeals when using AI to downcode reimbursement claims

Original title: Requires certain health insurers offering a health benefit plan in this state that provide utilization review or have utilization review provided on their behalf to notify a health care provider each time the insurer uses artificial intelligence or other automated technology to automatically downcode a claim for reimbursement submitted by the provider.

Last action · March 6, 2026: In committee upon adjournment.

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Health insurers offering health benefit plans in Oregon that use artificial intelligence or automated technology to automatically downcode reimbursement claims must notify the submitting health care provider in writing within two business days. The notice must disclose the AI use, state the reason for downcoding, cite specific policy or bill coding language, and describe the available appeals process. Insurers must also provide providers with an opportunity for a timely appeal before a medical consultant or peer review committee.

Why it matters

Health care providers treating patients under state-regulated health benefit plans gain formal notification requirements and an explicit right to appeal when automated systems reduce their reimbursement amounts.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

health care providers

Health care providers submitting reimbursement claims receive mandatory written disclosures when AI is used to downcode claims and gain access to an established appeals process.

Directly affected

health insurers

Insurers offering health benefit plans and utilizing automated technology must issue timely written notices, cite specific policy language, and maintain an appeal mechanism for downcoded claims.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What must an insurer do when they use AI to downcode a claim?
The insurer must give the provider written notice within two business days after payment is made, disclose the AI use, provide the specific reason for downcoding, cite the applicable policy or bill coding language, and describe the appeals process and time limits.
What options do health care providers have if their claim is downcoded using artificial intelligence?
Insurers must make available an opportunity for a timely appeal before an appropriate medical consultant or peer review committee, consistent with the process for requesting additional payment under ORS 743B.453.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

4 actions
  1. Mar 6, 2026House
    In committee upon adjournment.
  2. Feb 6, 2026House
    Public Hearing held.
  3. Feb 2, 2026House
    Referred to Information Management and Technology.
  4. Feb 2, 2026House
    First reading. Referred to Speaker's desk.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Regulation of Automated AI Claim Adjustments

The measure integrates specific procedural protections and written disclosure mandates directly addressing the deployment of automated algorithms and artificial intelligence in claim reimbursement decisions.

Connected Entities

Nancy Nathanson, United States Food and Drug Administration, Joint Legislative Committee on Information Management and Technology and 1 more
PersonNancy Nathanson“Representative requesting the bill”Map →
OrganizationUnited States Food and Drug Administration“Federal agency determining drug equivalence and interchangeable biological produ”Map →
OrganizationJoint Legislative Committee on Information Management and Technology“Committee requesting the measure”Map →
OrganizationDepartment of Consumer and Business Services“State department receiving annual summaries of utilization review policies”Map →

Sources

Open source document

olis.oregonlegislature.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 60)
  • Controversy35
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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