In Law360, Health Care Attorneys Examine How States are Regulating Health Insurers’ AI Usage

In The News
August 14, 2025

In a Law360 article, health care attorneys examined the growing concern on the use of artificial intelligence tools by health insurers and their contractors in making coverage decisions based on the medical necessity of services being provided.

The authors discuss the California AI Act as a model for other states and examine emerging state legislation and restrictions on the use of AI as the final arbiter for decisions about medical necessity and prior authorization. The authors also include considerations for payors and contractors given the lack of clarity around the future and growing patchwork of state AI regulation, particularly vendors charged with utilization review and management or third-party administration.

The article was authored by health care partner and practice co-chair Tim McCrystal, health care partners Jennifer Romig and Jamie Darch and health are associates Joanne Hyun and Daniel Hinckley.