State Penalties
Healthcare AI Regulatory Penalties — All 50 States

Healthcare AI Regulatory Penalties — All 50 States

HIPAA overlays, AI medical decision laws, prior authorization rules, and healthcare fraud penalties across all 50 states.

Color-coded by maximum imprisonment severity

Risk tier:HighMediumLow
StateTierLawCivil FineCriminal FineImprisonmentHIPAA Overlay
AlabamaHighSB 63/HB 515 medical necessity$100,000/act$30,00020 years (Class B Felony)Yes
AlaskaLowSB 133 prior auth$25,000/instanceN/ALicense suspensionYes
ArizonaMediumHB 2175 AI oversight$1,000/violation$10,000 enterprise6 monthsYes — up to $250K/10 yrs
ArkansasLowInsurance mandates$1,000/violationN/AN/AYes
CaliforniaMediumSB 1120 / AB 3030$25,000 (facility)$10,0001 yearYes
ColoradoHighGeneral facility/HIPAA$10,000+$250,00010 yearsYes — up to $250K/10 yrs
ConnecticutLowDPH enforcement$25,000N/AN/AYes
DelawareMediumDHSS/Insurance Commissioner$10,000/instance$10,000 (Class F)Felony termsYes
FloridaHighHIPAA + state licensing$50,000/violation$250,00010 yearsYes — full HIPAA tiers
GeorgiaHighCATCH Act / Facility licensing$5,000 (serious harm min.)$500,000 (kickback)10 yearsYes
HawaiiLowHB 820 AI review$10,000/offenseN/A30 days (petty misd.)Yes — up to $68,928/vio
IdahoHighMedicaid fraud / Anti-kickback$5,000/referral$15,00015 years (insurance fraud)Yes
IllinoisHighHealthcare fraud$50,000 (corp.)$25,000Life (if death results)Yes
IndianaLowIC 16-51-2.5 AI disclosure$1,000/violationN/AN/AYes
IowaLowIowa Code 135C.36$10,000/citation (Class I)N/AProgram exclusionYes
KansasLowSB 405 Healthcare AI$50,000/violationN/AN/AYes
KentuckyHighKRS 223.991$500$250,000 (HIPAA)10 years (HIPAA)Yes
LouisianaHighHB 114 AI diagnosis$10,000/violation$250,00010 yearsYes
MaineLowLD 1301 AI denials$25,000/day (repeat)N/AN/AYes
MarylandHighHB0820 AI healthcare$10,000/offense$250,000 (health data)10 yearsYes
MassachusettsHighRPO reporting$25,000/week$250,00010 yearsYes
MichiganHighPublic Health Code$50,000 (willful neglect)$250,00010 yearsYes — full HIPAA tiers
MinnesotaLowHealth Records Act$7,500/violationCriminal prosecutionLicense revocationYes
MississippiLowHB 1717 Medical Judgment$5,000/violationN/ALicense suspensionYes
MissouriHighHIPAA enforcement$50,000$250,00010 yearsYes — full HIPAA tiers
MontanaHighHCA / Facility violations$50,000N/A20 years (felony)Yes
NebraskaLowLB 77 AI review$1,000 (subsequent)N/AN/AYes
NevadaMediumAB 406 / BBSP$15,000/violation$5,000 (Cat D Felony)4 yearsYes
New HampshireMediumHB 1406 / NHFCA$11,000/claim + 3x damagesClass B Felony7 years (Medicaid fraud)Yes
New JerseyMediumA3973 kickbacks$20,000/violation$50,0005 yearsYes
New MexicoLowMedical Board / False Claims$28,619/claim + 3x damagesN/ALicense revocationYes
New YorkHighHealthcare fraudUp to $2.07M/year (HIPAA)$250,00025 years (1st degree)Yes
North CarolinaHighMedical Board$68,928/violation (HIPAA)$250,00010 yearsYes
North DakotaLowPrior auth reform$500/dayBoard sanctionsN/AYes
OhioMediumORC 3701.244$20,000/violation$750 (health order)90 days (2nd degree misd.)Yes
OklahomaLowSB 1967 / HB 1915$500,000/year (aggregate)$100,000/violationFelony possibleYes
OregonLowOHA / Board of Pharmacy$10,000 (pharmacy)N/AN/AYes
PennsylvaniaMediumFacility licensing / HIPAA$50,000/violation$250,00010 years (HIPAA)Yes
Rhode IslandLowS0013 healthcare AI$50,000/violation (insurer)N/AN/AYes
South CarolinaMediumMedicaid fraud / PMPTreble damages + $2K/claim$10,00010 years (PMP felony)Yes
South DakotaMediumSB 169 AI reviewCease-and-desist$250,000 (HIPAA)10 years (HIPAA)Yes
TennesseeLowSB 1261 AI utilizationPunitive damagesN/AN/AYes
TexasLowSB 1188 / TRAIGA$250,000 (financial gain)N/ALicense revocationYes
UtahLowHB 452 mental health chatbotsAdmin finesN/AN/AYes
VermontMediumGreen Mountain Care Board$10,000 (drug pricing)$1,000/claim10 years (Medicaid fraud)Yes
VirginiaLowSB 754 reproductive data$5,000 (subsequent willful)N/AN/AYes — up to $250K/10 yrs
WashingtonMediumMental health parity$300,000 (admin)N/A364 days (gross misd.)Yes
West VirginiaMediumWV Code §9-7$50,000/violation (HIPAA)$10,00010 years (record destruction)Yes
WisconsinMediumProvider AI restrictions$25,000 (willful)$100,000 (for profit)3.5 yearsYes
WyomingMediumSF0057 Price Transparency$1,000/day$250,000 (HIPAA)10 years (HIPAA)Yes