PHOENIX, Ariz. — A new law in Arizona will soon prohibit health insurance companies from using automated systems to deny claims, aiming to ensure that only licensed doctors make decisions about medical care.
The legislation, House Bill 2175, was introduced by Republican House Majority Whip Rep. Julie Willoughby and signed into law by Democratic Governor Katie Hobbs. It will take effect in July 2026.
Under the new law, only physicians licensed in Arizona will be allowed to review and deny insurance claims. These reviews must be conducted individually, and doctors must use their own medical judgment when deciding if a claim or a request for pre-authorization should be rejected.
“This law ensures that a doctor, not a computer, is making medical decisions,” Willoughby said. “If care is denied, it should be by someone with the training and ethical duty to put patients first.”
The law comes after growing criticism of major insurance companies, including Cigna and UnitedHealthcare, for allegedly using computer algorithms to reject claims without proper human review. Investigations by outlets such as ProPublica and FOX Business have highlighted concerns about these automated processes.
Willoughby said the law brings more accountability to the system. “Arizona families deserve real oversight when it comes to life-changing medical decisions,” she said. “This law puts patients ahead of profits.”
The bill passed the Arizona Legislature with near-unanimous support.
Arizona is not the first state to act on this issue. Last year, California passed a similar measure, called the “Physicians Make Decisions Act.” That law was introduced out of concern over the increasing role of artificial intelligence in health care.
“Artificial intelligence has immense potential to enhance health care delivery, but it should never replace the expertise and judgment of physicians,” California State Senator Josh Becker said in a statement at the time. “An algorithm cannot fully understand a patient’s unique medical history or needs.”
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