Synthetic Intelligence & Well being Care: State Outlook and Authorized Replace for 2024

Synthetic Intelligence & Well being Care: State Outlook and Authorized Replace for 2024

Govt Abstract

  • As Congress holds hearings on the rising use of synthetic intelligence (AI) within the well being care sector, states are contemplating and enacting laws to limit the use or implementation of such expertise.
  • Whereas states’ actions are geared toward defending affected person well being and privateness, they threat making a patchwork of laws which can be tough to navigate as AI expertise evolves; furthermore, these actions may inadvertently stifle the adoption of expertise that has actual promise to enhance affected person outcomes.
  • This perception critiques latest federal, state, and authorized exercise on using AI within the broader well being care sector, together with congressional hearings, state laws, and sophistication motion lawsuits.


In November, each the Senate Well being, Schooling, Labor, and Pensions (HELP) Committee and the Home Power and Commerce Subcommittee on Well being held hearings to realize a greater understanding of how synthetic intelligence (AI) could also be used inside the well being care sector, from decreasing doctor paperwork to enhancing prognosis and illness administration.[i] Throughout the HELP listening to, witnesses expressed some key issues round AI software for policymakers to remember when contemplating future laws.

Because the well being care sector’s adoption of AI continues apace, state policymakers have begun proscribing using AI in well being care, citing the significance of defending affected person well being and privateness, which can delay affected person care and stifle future innovation. States are introducing and enacting new legal guidelines that prohibit discrimination and forestall the violation of affected person privateness because of AI adoption, as required below the Well being Insurance coverage Portability and Accountability Act of 1996 (HIPAA), in addition to limiting the scope of AI algorithm use inside medical care.

As well as, authorized precedents might prohibit using AI in well being care, as insurers are dealing with class motion litigation on using AI algorithms. Each UnitedHealth Care (a part of UnitedHealth Group) and Cigna are dealing with courtroom circumstances on insurance coverage claims rejections or denials centered on Al algorithms.

Issues about AI implementation within the well being care sector sometimes middle on affected person privateness, scope of follow, and supply of medical care. Some policymakers see the potential for an overreliance on AI algorithms which will overlook the distinctive wants of particular person sufferers. Though it’s unknown how giant a job AI will play within the U.S. well being care system, the dangers don’t essentially outweigh its advantages. AI may enhance illness surveillance, improve diagnostic and medical instruments, and spur new drug growth. State legal guidelines or authorized precedents proscribing or prohibiting AI use in well being care supply or administration might, within the long-term, delay or stop sufferers from receiving higher medical care or medical remedies.

The perception critiques latest federal, state, and authorized exercise on using AI within the broader well being care sector, together with congressional hearings, state laws, and sophistication motion lawsuits.

Federal Exercise

In September 2023, HELP Rating Member Invoice Cassidy (R-LA) launched a white paper on AI and its potential impacts on well being care, training, and the workforce. Broadly, the paper highlighted the potential for AI to be utilized in quite a lot of methods within the well being care sector, together with decreasing doctor paperwork – significantly round digital information – and known as on Congress to guard affected person info inside and past the present scope of HIPAA. To help drug analysis, growth, and approval, the paper additionally burdened that producers are actively utilizing AI and are more likely to proceed to include new developments into the expertise. Certainly, the paper famous that in 2021 over 100 drug functions submitted to the Meals and Drug Administration included AI parts.

Each Senate HELP and the Home Power and Commerce Subcommittee on Well being hosted hearings this 12 months to higher perceive using AI within the well being care sector. Notably, the HELP Committee highlighted 4 areas of concern associated to AI utilization: computerized insurance coverage denials, growing biosecurity dangers, cyberterrorism, and affected person privateness. Congressional committees of jurisdiction are proactively participating on questions round AI utilization in well being care and are more likely to introduce guardrails to deal with these issues in 2024.

State Exercise

In response to the Nationwide Convention of State Legislatures, not less than 25 states, Puerto Rico, and the District of Columbia have launched AI payments that, most often, require research to assist policymakers below the affect of AI or AI algorithms. Fifteen states and Puerto Rico have adopted resolutions or enacted such laws. But a couple of states are contemplating extra restrictive laws to that may mandate insurance coverage firms and others to publicly disclose algorithms and different technical info, in addition to to defend sufferers from algorithms that would discriminate primarily based on private traits, medical care, and psychological well being care.

Private Traits

In February 2023, California lawmakers thought-about laws that may replace the state’s Well being and Security Code in addition to the State Insurance coverage Code to ban a medical health insurance plan from discriminating on the premise of race, colour, nationwide origin, intercourse, age, or incapacity by AI algorithms. The invoice doesn’t prohibit using medical algorithms that depend on variables to determine, consider, and deal with well being disparities. The New Jersey legislature thought-about the same invoice.

Medical Care

In Could 2023, Georgia enacted a regulation to control using AI in optometric diagnostic care. The regulation prohibits prescribers from utilizing the info or info obtained from an eye fixed evaluation as the only foundation for issuing a prescription. Prescribers should additionally talk to sufferers that the attention evaluation is just not a substitute for the attention examination, the attention evaluation can not generate an preliminary prescription, and the attention evaluation can solely be used if the affected person has had an eye fixed examination prior to now two years. Illinois launched comparable language in a number of totally different payments.[ii]

In April 2023, Maine’s legislature thought-about laws prohibiting using AI expertise in well being care services to realize medical or nursing goals or that restrict and substitute direct care from a registered nurse.

Psychological Well being Care

In February 2023, Massachusetts launched laws that may require licensed psychological well being professionals who intend to make use of AI to first search approval from the related skilled licensing board. The invoice additionally mandates that sufferers give consent to using AI of their remedy. Rhode Island and Texas legislatures launched comparable language.

AI Transparency

In September 2023, Pennsylvania launched laws to deal with using AI in insurance coverage declare processing. The invoice would require insurers to reveal the use or absence of AI algorithms on their web site. The Insurance coverage Division of the Commonwealth can be required to implement a course of to certify that the algorithms should not discriminating towards any protected teams and insurers should submit their information to the division. The penalties for violating the act would come with fines or license suspension.

Authorized Exercise

In March 2023, ProPublica investigated affected person issues that Cigna utilized a decade-old algorithm to disclaim affected person claims with out a licensed medical skilled (physician or nurse) evaluate. State legal guidelines sometimes require medical oversight of declare denials to make sure that sufferers should not denied medically crucial remedy. State regulators are accountable for making certain that insurers are compliant with these processes, together with denials for prior authorization, that are required by the insurance coverage firm to approve a affected person’s remedy, remedy, or remedy.

Following the investigation, two of the most important insurance coverage firms in the USA are dealing with class motion lawsuits over using algorithms to facilitate declare denials.

Cigna Lawsuit

Plaintiffs argued that Cigna used an algorithm, generally known as procedure-to-diagnosis (PXDX), to batch comparable insurance coverage claims for computerized denial. The corporate’s medical administrators are accused of denying a big quantity of claims primarily based on PXDX with out conducting a evaluate of particular person claims as required by relevant state regulation. Moreover, plaintiffs argued that Cigna medical administrators denied with out evaluate 300,000 medical claims, spending 1.2 seconds evaluating every particular person case. Furthermore, the plaintiffs argued that the corporate retaliated towards medical administrators that didn’t routinely deny claims recognized by PXDX.

Following the ProPublica investigation on PXDX, Cigna said that findings of the report are biased and incomplete. Subsequently, in Could 2023, Home Power and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Well being Chair Brett Guthrie (R-KY), and Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA) reached out to the president and chief govt officer of Cigna for extra info and clarification.

The case was filed in August 2023 within the U.S. District Courtroom of Connecticut. In November 2023, the case was dismissed with out prejudice. In September 2023, one other class motion lawsuit on PXDX was introduced earlier than the U.S. District Courtroom of Southern California. In the identical month, a Cigna shareholder sued the corporate over using PXDX. It’s doubtless that further fits on PXDX may seem in different districts courts in 2024.

UnitedHealthcare Lawsuit

Plaintiffs argued that UnitedHealthcare used AI to disclaim Medicare Benefit claims primarily based on an AI mannequin with a 90 % error price. The plaintiffs contend that the insurer denied claims with out medical evaluate, particularly for post-acute care, as solely a tiny fraction of the inhabitants will enchantment a denial with most sufferers both paying out-of-pocket or forgoing the medically crucial care. Furthermore, the plaintiffs accused the insurer of performing in dangerous religion and denying claims that the insurer is required to cowl. In November 2023, a spokesperson for UnitedHealth mentioned in a press release that the platform is just not used to make choices on protection.

The case was filed in November 2023 within the U.S. District Courtroom of Minnesota and stays earlier than the courtroom.


Whereas Congress continues to work to higher perceive the function AI might play within the well being care sector, states are contemplating and enacting laws to limit the use or implementation of AI expertise. Whereas state actions are supposed to guard sufferers, they threat stifling potential advantages of AI functions for affected person care. The enactment of those legal guidelines may additionally create piecemeal laws which can be tough to navigate as AI expertise continues to evolve.

Furthermore, pending litigation over insurance coverage firms’ use of AI algorithms might set new precedent for using this expertise. Policymakers must take into account how finest to encourage using AI to enhance well being care remedies and medicines whereas making certain that the expertise helps quite than hinders affected person care.


[i] Daphne Edmond was an intern on the American Motion Discussion board in the course of the fall 2023 semester who contributed to this perception.

[ii] These payments embrace the College of Illinois Hospital Act, the Hospital Licensing Act, and the Medical Affected person Rights Act.

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