SB3027
NO AI IN HEALTH CARE PRICING
TL;DR
Illinois Senator Mike Simmons introduced SB3027, which would ban all Illinois hospitals from using artificial intelligence to set or influence any patient pricing or billing decisions. The bill amends the Fair Patient Billing Act and applies broadly to any AI tool touching hospital revenue cycle operations, from price-setting algorithms to AI-assisted billing software.
How This Might Impact Your Business
Illinois hospitals of all sizes would be barred from using AI anywhere in pricing or billing workflows, including revenue cycle management, chargemaster optimization, claims coding, and patient payment estimation tools.
Vendors selling AI-powered billing, coding, or revenue cycle software (Epic, Optum, Waystar, R1 RCM, and similar) would lose their Illinois hospital customer base for those specific products.
The ban uses the Illinois Human Rights Act definition of AI, which is broad and could sweep in machine learning tools that hospitals may not currently label as 'AI' internally.
No carve-outs appear for administrative efficiency tools, fraud detection, or AI that merely 'influences' (rather than sets) pricing, making the prohibition unusually strict.
Government payers (Medicare, Medicaid, workers' comp) are already excluded from the underlying Fair Patient Billing Act, so the impact centers on commercial insurance and self-pay billing.
No penalty section is specified in the excerpt, but violations would likely be enforced through existing Fair Patient Billing Act mechanisms, including Attorney General action.
Currently at an early stage (re-referred to Assignments), meaning it has not yet cleared committee and faces an uncertain path.
What Should You Do
Inventory every AI or machine learning tool used in your Illinois hospital's revenue cycle, billing, coding, and pricing workflows, and flag which vendors market these features as 'AI.'
Ask your legal and compliance teams to map the Illinois Human Rights Act's AI definition against your current tech stack to understand exposure if this bill advances.
Contact your billing software vendors now to ask whether they can offer non-AI versions or manual override modes for Illinois operations.
Engage the Illinois Health and Hospital Association or your government affairs team to submit witness slips and monitor the bill's next committee assignment.
Brief your CFO and revenue cycle leadership on potential operational and financial impact if AI-driven pricing tools must be turned off in Illinois facilities.
Who It Affects
Sponsors
Status Timeline
introduced
Rule 3-9(a) / Re-referred to Assignments
January 29, 2026