New California law prohibits using AI as basis to deny health insurance claims
Briefly

Last year, about a quarter of all health insurance claims were denied in California, a reality mirrored nationwide that has stoked public anger toward health care companies.
Senate Bill 1120, known as the Physicians Make Decisions Act, ensures that a human's perspective cannot literally be removed from such decisions by prohibiting coverage denials made solely on AI algorithms.
Under the new law, AI tools cannot be used to deny, delay or alter health care services deemed medically necessary by doctors.
Becker noted, 'An algorithm cannot fully understand a patient's unique medical history or needs, and its misuse can lead to devastating consequences.'
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