States considering laws to regulate AI in healthcare

Several states are looking to regulate the use of artificial intelligence (AI) in healthcare as concerns grow about its accuracy and fairness. Critics argue that AI can introduce bias in medical decisions, which could negatively affect patient care. AI is increasingly used by health insurance companies to quickly process medical claims. This technology can analyze patient history and other data to determine if claims are valid. The processing may be automated, but some claims still require a human review, according to experts. The adoption of AI can lead to significant savings for insurance companies, potentially reducing administrative costs substantially. However, there are challenges. For instance, many AI systems operate like "black boxes," meaning their decision-making processes are not always clear. This lack of transparency can make it difficult for human evaluators to understand or justify claim decisions. Concerns about AI's impact on claims processing are rising, especially as denials of claims increase. A survey found that nearly 30% of doctors reported more claim denials in the past year. Major insurers, including UnitedHealth and Cigna, face lawsuits claiming they used algorithms to unjustly deny critical care. Experts warn that while AI can improve efficiency, it may also lead to important claims being wrongly denied, affecting vulnerable groups. There is ongoing legislative action in several states aiming to impose stricter controls on how AI is used in healthcare, with proposals like one in Texas that seeks to prevent AI from being used to deny claims.