Illinois has enacted significant new legislation aimed at modernizing digital identification and strengthening privacy protections through two key measures: House Bill 4592 for mobile identification cards and the proposed Artificial Intelligence Systems Use in Health Insurance Act. The digital ID initiative follows similar successful implementations in states like West Virginia and Arizona.
House Bill 4592, endorsed by Secretary of State Alexi Giannoulias, enables Illinois residents to carry digital versions of their state identification cards and driver’s licenses on mobile devices. The Secretary of State will issue these mobile credentials containing all standard information found on physical cards, including the holder’s name, photograph, and signature. The digital IDs will be accessible through secure applications that meet American Association of Motor Vehicle Administrators guidelines and ISO/IEC 18013-5 standards for mobile driver licenses, joining the growing network of states participating in AAMVA’s Digital Trust Service.
While offering digital convenience, the legislation requires residents to maintain physical versions of their credentials, particularly for law enforcement interactions. The mobile IDs feature encryption protocols to ensure data shared during transactions is both secure and limited to essential elements. The security framework matches established standards that have proven successful in other jurisdictions and recently received federal support through the FAA Reauthorization Act’s mandate for mobile ID acceptance.
Separately, the Illinois State Legislature has introduced House Bill 5918, known as the AI Act, to establish regulatory oversight of artificial intelligence use in health insurance decisions. The legislation grants the Illinois Department of Insurance authority to implement and administer rules governing insurers’ AI-driven models for coverage determinations, representing one of the first comprehensive state-level approaches to AI regulation in healthcare insurance.
Under the AI Act, insurers must disclose their use of AI systems and conduct meaningful reviews of AI-driven decisions to prevent adverse outcomes such as improper denial or reduction of benefits. The Department can establish requirements for full disclosure regarding how insurers implement AI technology. The legislation also mandates that insurers comply with existing federal and state regulations addressing unfair trade practices and discrimination, creating a framework that balances technological innovation with consumer protection.
Sources: Mahomet Daily, SJO Daily, The National Law Review
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