Original research · LegiScan state bill data plus the bill texts, read by hand · Last updated September 29, 2026
Data through: state bills and their status as of September 29, 2026.
The short answer: If you run a small practice, therapy office or clinic, the biggest change is for mental health. Seven states now bar AI from doing therapy itself (Illinois, Nevada, Maine, Colorado, Rhode Island, Vermont) or from being sold as a therapist (Tennessee). You can still use AI for scheduling, billing and notes in most of them, but you often need written consent to record sessions with it. A few states, including California, Texas and Rhode Island, also make you tell patients when AI writes their messages, helps with their care, or writes up their visit.
Key findings
- 169 health care AI bills in 43 states (2025-26) came up in our keyword screen of LegiScan. We read every one that became law. Four were not really health care AI laws, so we took them out.
- 17 health care AI laws in 14 states were enacted in 2025-26 after that cleanup, counting House and Senate twins once. We added one the screen missed (Texas SB 1188).
- Therapy is where the lines are firmest. Illinois went first in August 2025. Nevada, Maine, Colorado, Rhode Island and Vermont followed with similar rules. Tennessee bans selling AI as a mental health professional.
- Disclosure is the most common rule for other practices. Tell patients when AI writes their messages (California), helps treat them (Texas), or writes their visit notes (Rhode Island).
- Insurer rules help you on claims. At least six states now limit insurers from denying care based only on an algorithm, and Illinois will ban automatic algorithm downcoding in 2028.
AI therapy bans and limits
These hit therapists, counselors, social workers, psychologists and any group practice or clinic offering mental health care. Most follow the Illinois model: a licensed person must do the therapy, and AI stays in the back office.
| State | Law | Starts | What it means for your practice | Penalty or enforcer |
|---|---|---|---|---|
| Illinois | HB 1806 | Aug 1, 2025 | AI can’t provide therapy, make treatment decisions, talk with clients in a therapeutic way, or detect emotions. You may use it for scheduling, billing, notes and similar support. You need written consent before AI records or transcribes a session. | Up to $10,000 per violation |
| Nevada | AB 406 | 2025 | Providers can’t use AI to deliver mental or behavioral health care directly. Admin uses like scheduling, billing and notes are allowed. No one can market an AI as a therapist. | Up to $15,000 per violation |
| Maine | LD 2082 | 2026 (approved Apr 13, 2026) | Same idea as Illinois. You also can’t refuse care to a client who says no to AI. | Licensing board discipline |
| Colorado | HB 1195 | 2026 (signed June 3, 2026) | Same idea as Illinois, plus written consent before AI records a session. One consent can cover later sessions. You can’t refuse care to a client who says no. | Licensing boards |
| Rhode Island | H 7349 / S 2197 | 2026 (signed June 22, 2026) | Same idea as Illinois. | State health agency (EOHHS) and existing penalties |
| Vermont | H 816 (Act 156) | 2026 (signed June 17, 2026) | Using AI in ways the law forbids counts as unprofessional conduct for mental health professionals. | Licensing boards |
| Tennessee | HB 1470 / SB 1580 | July 1, 2026 | No one can advertise an AI system as a qualified mental health professional. | $5,000 per violation (consumer protection law) |
| Utah | HB 452 | May 7, 2025 | Rules for mental health chatbots, not a ban. Sellers must say it’s AI, label ads, and can’t sell or share users’ health information. | Up to $2,500 per violation |
Rules for any medical practice or clinic
| State | Law | Starts | What it means |
|---|---|---|---|
| California | AB 3030 (2024) | In force | If your clinic or office uses generative AI to write messages to patients about their care, add a notice that AI wrote it and tell them how to reach a person. Not needed if a licensed provider read and reviewed the message first. |
| California | AB 489 | 2026 | AI tools and their ads can’t use titles or wording that suggest a licensed health professional is behind them. |
| Rhode Island | H 7538 / S 2570 | June 22, 2026 | If you use AI to write up visit notes, tell the patient and review the notes yourself. |
| Texas | HB 149 (TRAIGA) | Jan 1, 2026 | Health care providers must tell patients when AI is used in their care or treatment, by the first day of service (or as soon as possible in an emergency). |
| Texas | SB 1188 | Sept 1, 2025 | A practitioner may use AI to help with diagnosis or treatment only within the scope of their license, must review AI-made records, and must tell patients. |
Colorado’s broader AI law, SB 26-189, also covers AI that helps make health care decisions, starting January 1, 2027. See the main AI laws guide for what it asks of businesses.
Insurer rules that affect your claims
These don’t tell you what to do. They limit how health insurers use AI on your patients’ claims, which gives you something to point to when a denial looks automated.
| State | Law | Starts | What it does |
|---|---|---|---|
| Alabama | SB 63 | 2026 | A licensed physician or other health professional must make any prior-authorization denial based on medical necessity, not the AI. Fines up to $5,000 for repeat violations. |
| California | SB 1120 (2024) | In force | A licensed clinician, not an algorithm alone, must make medical-necessity denials. |
| Colorado | HB 1139 | 2026 | Rules for AI in insurers’ utilization review. Also no payment for psychotherapy delivered by AI. |
| Georgia | SB 444 | Jan 1, 2027 | Coverage decisions can’t rest only on AI. |
| Iowa | HF 2635 | 2026 | AI can’t be the only basis to deny, delay or downgrade a prior authorization. |
| Maryland | HB 820 | 2025 | Insurers’ AI review tools must base decisions on the patient’s own medical history and records, not only on group data. |
| Illinois | SB 3114 (Transparency in Downcoding Act) | Jan 1, 2028 | Payers can’t use algorithms to automatically downcode your claims. |
What to do if you run a small practice
- List every AI tool you use. Include note-takers (“AI scribes”), chat widgets on your website, patient message helpers and billing tools.
- Therapists and counselors: In Illinois, Nevada, Maine, Colorado, Rhode Island and Vermont, keep AI out of the session itself. Don’t let it talk to clients as a therapist or make treatment calls. Get written consent before an AI tool records or transcribes a session, and don’t turn away a client who says no.
- Doctors, dentists, clinics: Read and sign off on AI-written notes and patient messages. In Texas, tell patients about AI use in their care. In California, add the AI notice to unreviewed AI messages. In Rhode Island, tell patients if AI writes up their visit.
- Your website chatbot: Don’t let it call itself a nurse, therapist or doctor, or use a title that suggests a license.
- Keep a simple record of which tools you use and your consent forms. That’s what a licensing board will ask for.
This page is general information, not legal or medical-billing advice. Check with your licensing board or a health care lawyer in your state.
More on AI laws for small businesses:
Health care AI bills by state, 2025-26
Bills from our keyword screen whose main topic is AI in health care or health insurance, after dropping the four mislabeled laws.
| State | Bills |
|---|---|
| Maryland | 10 |
| New York | 10 |
| Illinois | 8 |
| Minnesota | 8 |
| Rhode Island | 8 |
| California | 7 |
| Hawaii | 7 |
| Texas | 7 |
| Oklahoma | 6 |
| Tennessee | 6 |
| Missouri | 5 |
| Pennsylvania | 5 |
| Vermont | 5 |
| Wisconsin | 5 |
| Connecticut | 4 |
| Massachusetts | 4 |
| Mississippi | 4 |
| New Jersey | 4 |
| South Carolina | 4 |
| Virginia | 4 |
| Florida | 3 |
| Iowa | 3 |
| Indiana | 3 |
| Nevada | 3 |
| Ohio | 3 |
| Alabama | 2 |
| Arkansas | 2 |
| Colorado | 2 |
| Georgia | 2 |
| Kansas | 2 |
| Kentucky | 2 |
| Louisiana | 2 |
| Maine | 2 |
| Michigan | 2 |
| North Carolina | 2 |
| South Dakota | 2 |
| Arizona | 1 |
| Idaho | 1 |
| Montana | 1 |
| New Hampshire | 1 |
| Oregon | 1 |
| Utah | 1 |
| West Virginia | 1 |
Methods and sources
- Bill data: LegiScan’s national database, 2025 and 2026 state sessions, pulled September 29, 2026. Bills were tagged by topic with keywords. 169 state bills had AI in health care as their main topic.
- Checking the laws: We read the text of every bill marked as law. We dropped four: Connecticut SB 10 (its final text has no AI provisions), Illinois HB 3178 (about digital replicas of people, not health care), Nevada AB 325 (AI in emergency management plans) and Texas SB 1964 (AI use by state agencies). We counted House and Senate twins once (Tennessee HB 1470/SB 1580, Rhode Island H 7349/S 2197 and H 7538/S 2570). We added Texas SB 1188, which the screen missed. That leaves 17 laws in 14 states. The bill counts by state include bills we didn’t read one by one, so treat them as approximate.
- Older laws: California AB 3030 and SB 1120 passed in 2024 but are listed because they apply now. They aren’t in the 2025-26 counts.
- Limits: A keyword screen can miss bills. Details can change with amendments and agency rules. This is not legal advice.
- Bill data courtesy of LegiScan (CC BY 4.0). The sorting and summaries are ours.