A new law in this state bans automated insurance claim denials

Arizona's new law mandates licensed physicians, not computers, to review health insurance claims, aiming to prioritize patient care over profits by 2026.

Arizona State Capitol building in Phoenix. (dszc via Getty Images)

It also required a similar review of "a direct denial of a prior authorization of a service" that a provider asked for and "involves medical necessity."

"This law ensures that a doctor, not a computer, is making medical decisions," Willoughby said in a statement. "If care is denied, it should be by someone with the training and ethical duty to put patients first. That decision must come from a licensed physician, not an anonymous program."

The law will go into effect in July 2026, so insurers will have time to be ready for the changes, if any.

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Now-Arizona Gov. Katie Hobbs spoke at a press conference calling for abortion rights outside the Evo A. DeConcini U.S. Courthouse on Oct. 7, 2022 in Tucson, Arizona. (Mario Tama/Getty Images)

Fox News Digital reached out to Hobbs’ office for comment. Similar legislation was signed into law in California last year, which was dubbed the "Physicians Make Decisions Act." 

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The lawmaker in the Golden State was specifically concerned about the rise of artificial intelligence.

"Artificial intelligence has immense potential to enhance health care delivery, but it should never replace the expertise and judgment of physicians," Democratic state Sen. Josh Becker said in a December statement. "An algorithm cannot fully understand a patient’s unique medical history or needs, and its misuse can lead to devastating consequences."

Cameron Arcand is a politics writer at Fox News Digital in Washington D.C. Story tips can be sent to Cameron.Arcand@Fox.com and on Twitter: @cameron_arcand 

https://www.foxnews.com/politics/arizona-bans-automated-insurance-claim-denials