AI use in health insurance

California has enacted a law that prohibits the use of AI in health insurance decisions. SB 1120 (2024 | CA) prohibits health insurers from making determinations based solely by AI. State health insurers were denying coverage about 25% of the time before this law was enacted. This bill grants state regulators the discretion to fine insurance companies and determine the amounts owed for violations, such as missed deadlines or improper use of AI.

Governing | California Law Blocks Health Insurers From Denying Claims Through AI