Senate committee hears bill to limit sole use of AI for prior authorization, add stem‑cell consent rules

The Nevada Senate Commerce and Labor Committee on March 28 heard testimony on Senate Bill 128, a bill that would restrict the use of artificial intelligence in insurer prior‑authorization decisions and require clinicians to provide specific informed‑consent information to patients considered for stem‑cell therapies.

The measure’s sponsor, Senator Roberta Lang, said the bill addresses two separate concerns: protecting patients from automated denials of medically necessary care and ensuring patients receive accurate, up‑to‑date information about stem‑cell treatment and donation options. “The rule requires decisions to be reviewed by a physician or other appropriate health care professionals,” Lang said while summarizing federal guidance and state policy options.

Supporters, including labor and nursing representatives, told the committee automated denials are already affecting patients. Kent Ervin of the Nevada Faculty Alliance said he hears frequent complaints about prior‑authorization denials and the difficulty of appeal. Renee Ruiz of National Nurses United told the committee the nurses’ group “very much appreciates” the proposal and supports the bill.

Opponents raised technical concerns about definitions and possible gaps that could allow insurers to continue using algorithms to make adverse determinations. Lisonbee Brazier of the Nevada Justice Association said the association has “a very light opposition to this bill as currently written,” noting that existing statute already requires certain adverse determinations be made by physicians and asking that SB 128’s language be reconciled with NRS 695.015 and related provisions.

The Nevada Division of Insurance testified neutral. Adam Plain said the division’s February bulletin on insurer use of AI (bulletin 24‑001) aligns with the bill’s goals and that the division sees no conflict between that guidance and the measure as drafted.

On the bill’s stem‑cell provisions, National Conference of State Legislatures (NCSL) presenters described state trends requiring patient notification when unapproved regenerative medicine is used and summarized donation routes — peripheral blood stem cell collection, bone marrow donation and umbilical cord donation — that lawmakers may wish to consider when drafting informed‑consent language.

No formal committee vote was taken; the hearing concluded with the sponsor and staff saying they would continue discussions with interested stakeholders about definition and drafting concerns.