States Work to Regulate Health Insurers’ Use of AI to Deny Care

(Bloomberg Law) -- Lawmakers in California are working to join other states regulating health insurers’ use of artificial intelligence tools in coverage decisions.

At least 40 states have introduced or passed legislation on AI regulation in 2024, with a half-dozen measures related specifically to the health-care industry, according to the National Conference of State Legislatures. A common focus of the health-specific bills has been greater oversight on insurers’ use of AI tools to expedite coverage decisions.

The effort comes as top insurers Humana Inc., Cigna Corp., and UnitedHealth Group Inc. are facing class actions from consumers and their estates for allegedly utilizing AI technology to improperly deny coverage.

California legislation passed with overwhelming bipartisan support by the Senate and set to go before a state Assembly hearing July 2 would require any health insurer in the state to have a licensed physician supervise the use of AI tools in the utilization review process.

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