California Bans AI-Only Health Insurance Claim Denials

2025-01-06

California has enacted a new law prohibiting health insurance companies from denying claims based solely on artificial intelligence algorithms. The law prioritizes human judgment in coverage decisions, aiming to prevent AI miscalculations from denying patients necessary care. While acknowledging AI's potential benefits in healthcare, the legislation emphasizes the irreplaceable role of human empathy and understanding of individual patient needs. The law's impact extends beyond California, with other states and even Congress considering similar legislation, highlighting growing national concerns about AI's use in insurance.

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