California Enacts Oversight on AI in Health Insurance Decisions

Health insurers in California must now have physicians or other qualified health-care providers review coverage decisions made by artificial intelligence tools under legislation signed into law Saturday.

The bill (SB 1120) approved by Gov. Gavin Newsom (D) requires health insurers that use AI software in the utilization review process to develop written policies to ensure that coverage decisions are based on the medical necessity of treatments and are equitably applied to patients. The legislation, which received bipartisan support, has the potential to set a precedent across states when it comes to regulating insurers’ use of AI tools to ...