California has passed a new law that puts limitations on the use of algorithms by insurers to make decisions on coverage and prior authorization in healthcare. The Physicians Make Decisions Act requires AI-generated decisions to be based on a patient’s medical history and clinical situation, approved by a human physician, and fairly applied. The law aims to prevent biased decision-making and ensure transparency in the data used to train algorithms. Additionally, a separate law requires providers to inform patients when AI is used in generating communications. These laws aim to provide guardrails for the use of AI in healthcare to ensure quality medical treatments for patients.
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New State Law Will Restrict Health Insurers’ Use of AI
