States Expand Guardrails on AI Use in Health Insurance Decisions

State legislatures are rapidly moving beyond broad artificial intelligence governance to regulate one of AI’s most consequential applications: health insurance coverage determinations. According to a new analysis from Sheppard Mullin’s Healthcare Law Blog, lawmakers are increasingly permitting insurers to use AI to streamline prior authorization and utilization review while drawing a firm line against allowing algorithms to make final medical necessity decisions without meaningful human oversigh