Arizona Gov. Katie Hobbs recently signed a bill into law that requires a licensed medical professional to have the final say in claims denials and prior authorization decisions.
The new law prohibits insurers from using AI as the final decision-maker in the review and denial of claims for medical necessity and prior authorization requests, according to the Arizona Medical Association, which supported the legislation.
“While AI promises innovation for healthcare, the review and denial of medical claims — some of which represent life-changing treatments and procedures — should be left to physicians who can make nuanced clinical judgments about each patient’s unique healthcare needs,” Arizona Medical Association President Nadeem Kazi, MD, said in a statement. “In healthcare, there are no simple, straightforward cases. Each patient’s medical needs are nuanced and best understood by trained professionals — and they should be treated as such.”
The new law takes effect June 30, 2026.
