Committee hears proposal to require disclosure when AI alters health billing codes

Nov 18, 2025

Committee members discussed drafting a concept to require insurers to disclose if automated systems (AI) altered provider-submitted billing codes, after members reported instances of claims being "downcoded" without provider notice and raised concerns about appealability and transparency.

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Representative Aaron Nathanson and committee staff described reports from health care providers that insurers may be using automated tools to alter submitted billing codes — a practice described in the meeting as "downcoding" — without notifying the provider. "I wrote this, but it was changed into something else… The claim was just changed, changed by not a human, changed by an AI program," Nathanson said, arguing the committee should consider drafting a disclosure requirement and an appeals process.

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