Source: AIS Health

California has enacted a new law imposing significant restrictions on the use of artificial intelligence by healthcare payers. This legislation seeks to prevent unfair practices, such as discriminatory denials of coverage based on AI-driven algorithms, which may inadvertently reflect biases or operate without adequate transparency.

The law requires healthcare payers to disclose how AI systems are used in decision-making, ensure algorithms are regularly audited for fairness, and provide human review of automated decisions when requested by patients. It aims to protect vulnerable populations and uphold ethical standards in healthcare administration.

The article notes that other states are monitoring California’s approach and may adopt similar legislation. This law represents a broader trend toward increased AI regulation in sensitive sectors, balancing innovation with consumer protection. Legal experts view it as a pivotal step in shaping AI governance within healthcare.