Insurance subcommittee advances bill to bar AI-only denials, department seeks to codify guidance
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
The House Insurance Subcommittee moved HB1406 forward after adopting an amendment that clarifies carriers must document AI use and that final adverse determinations be made by humans; the New Hampshire Insurance Department said the change largely codifies its existing AI bulletin.
The House Insurance Subcommittee advanced HB1406 on a subcommittee vote after adopting amendment 2026-O986H, which would make explicit that insurers using artificial intelligence must maintain records, oversee third-party AI, and ensure any final adverse determination is issued by a person, not an algorithm.
The amendment grew out of work between the bill sponsor and Michelle Heaton of the New Hampshire Insurance Department, who told the panel the department already enforces an AI bulletin and is incorporating many of those principles into rulemaking. "Any final adverse determinations need to be made by humans," Heaton said, arguing the amendment simply codifies existing expectations while preserving regulatory flexibility as NAIC guidance evolves.
Supporters said the change helps particularize NAIC and department guidance for health care prior-authorization contexts — emphasizing recordkeeping, clarification that adverse determinations include payment reductions or downcoding, and the department's oversight when carriers outsource AI. A committee member noted litigation risk and urged caution in adopting unenforceable language; Heaton responded the amendment aligns with the department's enforcement tools under the utilization-review statute and would not prohibit the use of AI, only require oversight and documentation.
Representatives of insurers including Anthem and Cigna told the committee they were not currently denying claims solely on AI output and that humans remain on the other side of decisions. "We are currently not denying claims using AI," Sabrina Dunlap, director of government relations for Anthem, said. Carriers urged that statutory language not conflict with already-regulated processes and cautioned against unintentionally expanding external-review procedures.
The subcommittee adopted the amendment after discussion and later moved the bill forward for further action; clerks recorded roll-call votes as part of the day's work and the item was placed on the committee's calendar for follow-up.
What happens next The subcommittee advanced HB1406 as amended; the bill will proceed to the next committee stage. The Insurance Department and stakeholders signaled they will continue to refine language and coordinate with NAIC guidance and ongoing rulemaking.