California Enacts Landmark Law Regulating AI Use in Health Insurance Decisions

California has taken a significant step towards regulating the use of artificial intelligence in health insurance decisions. Governor Gavin Newsom signed Senate Bill 1120, mandating that health insurers using AI for coverage determinations must have those decisions reviewed by qualified healthcare providers, such as physicians. The legislation aims to ensure that coverage decisions are based on medical necessity and equitable for all patients.

This new law is part of a broader movement across the United States, with at least 45 states considering AI-related legislation in 2024. The California law, receiving bipartisan support, may set a precedent for other states looking to regulate the integration of AI tools in health-related decision-making processes.

For further details on the legislation, visit the official announcement from Governor Newsom’s office here. The full text of the bill is available here.