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Lawmakers debate bill to require transparency and human review of AI used by health insurers
Summary
House Bill 556 would require health insurance issuers to disclose use of artificial intelligence (AI) tools in utilization review and prohibit AI from being the sole basis for denials, delays, or modifications of medically necessary care. Insurers urged caution, calling the drafting overly broad and potentially harmful to efficient approvals.
Representative Jill Koehnauer opened the hearing on House Bill 556, a bill that would require health insurers using artificial intelligence, algorithms, or software tools in utilization review to meet transparency, nondiscrimination, and human‑review standards.
Proponents included Jean Branscum of the Montana Medical Association, who called the bill a targeted step to protect patients from inappropriate denials or delays driven solely by automated systems. Branscum and Senator Ken Bogner (registered as a proponent) cited national examples where automated processes delayed necessary care, including a case where an algorithm rejected a…
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