AI Healthcare Regulations in Illinois (2025–2026)

Illinois has no single enacted AI-in-healthcare law as of mid-2026. Six bills in the 104th General Assembly target AI use by providers, insurers, and nurses. The highest near-term compliance risk involves AI in prior authorization, claims pricing, and clinical decision support. Verify all bill statuses at ILGA.gov before acting on this information.

Quick Answer: Where Illinois AI Healthcare Law Stands Today

Illinois has not enacted a comprehensive AI-in-healthcare statute. Instead, a cluster of active bills in the 104th General Assembly, existing state laws that reach some AI conduct, and federal frameworks fill the current regulatory space.

Active bills targeting healthcare AI (104th GA):

• SB 3027: Would restrict or prohibit AI in health care pricing by insurers and health plans. Committee deadline April 24, 2026.
• SB 3702 / HB 4804: Would regulate AI use by registered nurses. SB 3702 has a committee deadline; HB 4804 was re-referred to Rules.
• SB 3364: Would extend the Illinois Human Rights Act (775 ILCS 5) to AI-driven decisions. Committee deadline April 24, 2026.
• SB 2203: Broad automated decision tools bill. Re-referred to Assignments and procedurally stalled.
• HB 4735: Would require transparency in AI-assisted claim downcoding. Re-referred to Rules.

Existing law already in force:

• Illinois Biometric Information Privacy Act (BIPA, 740 ILCS 14): Applies to any AI system processing patient biometric data.
• Illinois Human Rights Act (775 ILCS 5): Existing anti-discrimination authority regulators could apply to algorithmic bias.
• Illinois Personal Information Protection Act (815 ILCS 530): Breach notification obligations cover AI-related data incidents.

Federal overlay still governs most clinical AI: FDA Software as a Medical Device (SaMD) guidance, HHS Office for Civil Rights guidance on civil rights and AI (2024), and CMS prior authorization rules apply to Illinois providers regardless of state bill outcomes.

Risk flag: Health plans and insurers using AI for prior authorization or claims pricing, and hospitals deploying clinical decision support tools, face the highest near-term legislative scrutiny. Verify current bill status at ILGA.gov before making compliance decisions.

Illinois Bills That Directly Regulate AI in Healthcare

SB 3027: No AI in Health Care Pricing

SB 3027 (104th GA) targets AI use in health care pricing decisions. The bill's title suggests a prohibition, but consult the official text at ILGA.gov to determine if it imposes a ban, a disclosure rule, or a human-review mandate. Covered entities appear to include health insurers, managed care organizations, and PBMs operating in Illinois. The Rule 2-10 Committee Deadline was established as April 24, 2026 (OpenStates IL 104th, SB3027). Bills that do not clear committee by this deadline typically do not advance.

SB 3702: Registered Nurse Use of AI

SB 3702 (104th GA) would establish rules governing how registered nurses may use AI tools in clinical practice. The bill implicates the Illinois Nurse Practice Act (225 ILCS 65), which defines scope of practice and delegates enforcement to the Illinois Department of Financial and Professional Regulation (IDFPR). The bill would likely define permissible AI assistance and require human oversight of AI-generated clinical recommendations. The committee deadline is April 24, 2026 (OpenStates IL 104th, SB3702).

HB 4804: House Companion to SB 3702

HB 4804 (104th GA) carries the same title as SB 3702 and addresses registered nurse use of AI. Consult ILGA.gov to compare the enrolled text and determine if the bills are identical. Procedurally, HB 4804 was re-referred to the Rules Committee under Rule 19(a) (OpenStates IL 104th, HB4804). Re-referral to Rules is a significant procedural setback, and bills sent there rarely advance in the same session without special action.

SB 3364: Human Rights-AI-Violations

SB 3364 (104th GA) would amend the Illinois Human Rights Act (775 ILCS 5) to address AI-driven discrimination. If enacted, it would explicitly prohibit discriminatory AI outputs in healthcare settings. The bill would extend IHRA protections to decisions made or influenced by AI systems, covering protected classes already enumerated in 775 ILCS 5. Complaints would be handled by the Illinois Department of Human Rights. The committee deadline is April 24, 2026 (OpenStates IL 104th, SB3364).

SB 2203: Automated Decision Tools

SB 2203 (104th GA) targets automated decision tools across industries. Its applicability to healthcare depends on the definition of "automated decision tool" in the bill text and whether healthcare entities are explicitly included. Consult ILGA.gov for the definition section. The bill would likely require impact assessments and notice to affected individuals. It was re-referred to the Assignments Committee under Rule 3-9(a) (OpenStates IL 104th, SB2203), a significant procedural obstacle.

HB 4735: Transparency in Downcoding Act

HB 4735 (104th GA) would impose transparency requirements related to AI-assisted claim downcoding, the practice of reducing a submitted billing code to a lower-reimbursement code. Covered entities appear to be health insurers. Consult ILGA.gov for the bill's operative text. The bill was re-referred to the Rules Committee under Rule 19(a) (OpenStates IL 104th, HB4735), a procedural setback.

HB 5649 (103rd GA): DFPR-AI-Mental Health Service

HB 5649 from the 103rd General Assembly would have regulated AI use in mental health service delivery under IDFPR oversight. It was re-referred to the Rules Committee and did not advance (OpenStates IL 103rd, HB5649, last action December 14, 2024). The bill's failure indicates unresolved legislative interest in regulating AI in mental health.

Illinois Legislative Procedure: What These Procedural Terms Mean

Existing Illinois Law That Already Touches Healthcare AI

Illinois Biometric Information Privacy Act (BIPA, 740 ILCS 14)

BIPA is the most significant existing law for healthcare AI. Any AI system that processes a patient's biometric identifier, including facial geometry, voice prints, or fingerprints, triggers BIPA obligations. Covered entities must have a written public policy for data retention and destruction, obtain written informed consent before collection, and are prohibited from selling or profiting from biometric data (740 ILCS 14/15). Liquidated damages under 740 ILCS 14/20 are $1,000 per negligent violation and $5,000 per intentional or reckless violation. Consult with legal counsel regarding recent case law, as Illinois courts are active in BIPA litigation.

Illinois Human Rights Act (775 ILCS 5)

The IHRA prohibits discriminatory practices in public accommodations, including healthcare services. Regulators and plaintiffs could apply existing IHRA authority to algorithmic bias in patient triage, coverage decisions, or clinical decision support tools even before SB 3364 passes. The Illinois Department of Human Rights (IDHR) handles complaints under 775 ILCS 5/7.

Illinois Personal Information Protection Act (815 ILCS 530)

PIPA requires notification to affected Illinois residents when a data breach compromises personal information. If an AI system is involved in a breach, PIPA breach notification obligations apply. For healthcare entities, PIPA obligations run parallel to federal HIPAA breach notification rules.

Illinois Artificial Intelligence Video Interview Act (820 ILCS 42)

This law applies to AI-analyzed video interviews in hiring, not to clinical AI. It demonstrates Illinois's established posture of requiring disclosure and consent when AI analyzes human characteristics, a logic visible in pending healthcare AI bills.

IDFPR and IDPH Existing Authority

IDFPR regulates licensed healthcare professionals under 20 ILCS 2105 and enforces the Illinois Nurse Practice Act (225 ILCS 65). AI use that falls outside a licensee's scope of practice could trigger disciplinary action under existing authority. Consult idfpr.illinois.gov for any guidance or advisory opinions on AI use by licensed professionals.

IDPH holds facility licensing and public health oversight. AI systems embedded in licensed facilities fall within IDPH's existing regulatory reach to the extent they affect patient safety or facility operations.

Federal Overlay

FDA's Software as a Medical Device (SaMD) guidance governs AI tools that meet the definition of a medical device. The HHS Office for Civil Rights issued guidance in 2024 on how Section 1557 of the ACA applies to algorithmic discrimination. CMS prior authorization rules impose process requirements on health plans that use automated tools to deny coverage. These federal frameworks apply in Illinois regardless of state bill outcomes.

What Changed Recently: 2025–2026 Illinois AI Healthcare Legislative Activity

While the 103rd General Assembly produced little AI-specific healthcare legislation, the 104th GA introduced a wave of AI healthcare bills in late 2025 and early 2026.

The April 24, 2026 Rule 2-10 Committee Deadline is the most significant near-term milestone. SB 3027, SB 3702, and SB 3364 all face this deadline. As of April 2026, all three bills were pending. Verify current status at ILGA.gov.

HB 4804 and HB 4735 were both re-referred to the House Rules Committee, making same-session advancement unlikely. SB 2203 was re-referred to Senate Assignments, also a significant procedural obstacle.

For national context, similar AI-in-insurance laws in other states, such as Colorado's SB 205 (2024), have influenced the Illinois debate.

The Illinois General Assembly typically adjourns in late May. Confirm the 2026 adjournment date at ILGA.gov. Any bill that does not pass both chambers before adjournment must be reintroduced in the next session.

Compliance Comparison: Key AI Healthcare Bill Requirements at a Glance

Enforcement gap note: No single Illinois agency holds explicit authority to enforce AI-specific rules in healthcare. IDFPR can act on scope-of-practice violations, IDHR on IHRA violations, and the Attorney General on BIPA claims, but no dedicated AI-in-healthcare enforcement body exists pending new legislation.

What Illinois Healthcare Providers and Health Plans Should Do Now

Conduct an AI inventory. Catalog every AI or automated decision tool used in clinical care, billing, prior authorization, utilization management, and HR. Map each tool against the pending bill scopes.

Run a BIPA audit. If any AI system processes patient biometric data, verify that a written public policy is in place, that written informed consent was obtained before collection, and that a retention and destruction schedule exists (740 ILCS 14/15). BIPA litigation risk is current.

Assess prior authorization and claims pricing AI. Document every human review step in AI-assisted prior authorization and pricing decisions. If SB 3027 passes, this documentation will be evidence of compliance with either a human-review or disclosure requirement.

Prepare nursing AI policies. Nursing leadership and legal counsel should review SB 3702 / HB 4804 at ILGA.gov. Begin drafting AI-use policies for nursing staff that define permissible AI assistance and require human oversight documentation, consistent with the Illinois Nurse Practice Act (225 ILCS 65).

Run a disparate impact analysis on clinical AI tools. Any AI tool used in patient triage, diagnosis support, or coverage decisions could face scrutiny under the existing IHRA (775 ILCS 5) and, if SB 3364 passes, an explicit AI anti-discrimination standard. Analyze outputs by IHRA-protected classes and document any remediation steps.

Monitor ILGA.gov after April 24. The April 24, 2026 committee deadline is the critical gate. Check bill status for SB 3027, SB 3702, and SB 3364 after that date.

Engage with industry associations. Consult the Illinois Hospital Association and Illinois State Medical Society for member guidance and legislative updates.

Document AI governance. Evidence of a good-faith AI governance program, including written policies, vendor due diligence, bias testing, and human oversight documentation, is critical in responding to any regulatory inquiry or litigation.

Next Steps and Who to Contact in Illinois

Bill Tracking

Illinois General Assembly: ILGA.gov. Search by bill number (SB 3027, SB 3702, SB 3364, SB 2203, HB 4804, HB 4735) for real-time status and enrolled text. Use the witness slip system at ILGA.gov to submit public comment on pending bills.

State Agency Contacts

IDFPR (Illinois Department of Financial and Professional Regulation): Regulates licensed healthcare professionals under 20 ILCS 2105. Contact for scope-of-practice questions involving AI. Web: idfpr.illinois.gov.

Illinois Department of Public Health (IDPH): Facility licensing and public health oversight. Contact for questions about AI in licensed clinical settings. Web: dph.illinois.gov.

Illinois Department of Human Rights (IDHR): Handles inquiries or complaints about AI-related discrimination under the Illinois Human Rights Act. Web: ilga.gov/agency.asp?ActID=2603.