CA’s AI in Healthcare Legislation, NJ’s Health Insurer Oversight Bill & More

AI in Healthcare Bills Awaiting Gov’s Action in CA

California could soon establish new guardrails for the use of artificial intelligence in healthcare with a pair of bills awaiting action by Gov. Gavin Newsom (D). One of the measures (SB 1120) would set requirements for the use of AI by insurers for utilization review or utilization management. The other (AB 3030) would require healthcare providers to disclose when they use generative AI in patient communications.

Although there were broad AI bills passed in Colorado (SB 205) and Utah (SB 149) with implications for healthcare providers, only a handful of the bills introduced this year focused on AI in healthcare specifically, which was somewhat of a surprise to Randi Seigel, a partner at Manatt Health.

“We actually expected more laws like this to be introduced this year and think it’s likely we will see a few other states introduce similar bills next year,” she said.

She added: “However, it may be another few years before we see mass adoption of these types of laws as many states will still be studying how they want to legislate AI through their task forces and councils that were created under this years’ laws.” (PLURIBUS NEWS, LEXISNEXIS STATE NET)

NJ Lawmakers Consider Tougher Oversight of Health Insurer Claims

The New Jersey Assembly’s Financial Institutions and Insurance Committee heard testimony on pending legislation (AB 3858) that would strengthen oversight of claims denied by health insurers. The measure would require insurers to submit a variety of information, including the number of claims they receive, the number they deny, the number appealed, the number approved and denied during the prior authorization process, and the procedures for which claims are most frequently denied. It would also require insurers that are unable to justify at least 20% of their denied claims to reimburse customers 100% of what they were charged for the services that were denied coverage. (NEW JERSEY MONITOR)

MD Drug Affordability Board Sets Upper Payment Limit

After working for over a year on how to implement payment limits for the drugs state and local governments buy, Maryland’s Prescription Drug Affordability Board approved an upper payment limit plan. The plan still has to be approved by the General Assembly’s Legislative Policy Committee, which has 45 days to do so. (WYPR)

—By SNCJ Correspondent BRIAN JOSEPH

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