New California law prohibits using AI as basis to deny health insurance claims

https://www.mercurynews.com/2025/01/05/new-california-law-ban-artificial-intelligence-deny-insurance-claims/

Comments

186 points · 8 comments · view on lemmy.world

8 Comments

normalexit@lemmy.world · 23 pts · 1y (3 replies)

I wish the other states could have nice things too

chemical_cutthroat@lemmy.world · 13 pts · 1y (2 replies)

That's kinda the good thing about it. If one state, like CA, can make it cost-prohibitive to do two different ways, then if they want to keep their business in CA, they have to play by the same rules everywhere.

halcyoncmdr@lemmy.world · 2 pts · 1y (1 reply)

In most markets. Insurance is essentially state-by-state though.

ChapulinColorado@lemmy.world · 1 pts · 1y

No, it is not. Not all countries are stupid enough to have so many systems for the same thing. Or be stupid enough to have 3 bids for the provider of the same benefits highly used by many in 1 state (e.g. California’s C-IV, LRS & CalWIN).

paraphrand@lemmy.world · 17 pts · 1y (1 reply)

I bet a work around is having the AI assess things, present recommendations, and then a human “makes the final call” by agreeing with the AI. Of course the human is free to make any decision. But you know how it will go.

Muehe@lemmy.ml · 6 pts · 1y

Apparently that is the case already. HN title has been changed to

Human judgment[!] must remain central to health insurance claims: California law

Top comment explains:

The headline is misleading. The bill allows AI and algorithms to be used, as long as it doesn't supplant a licensed medical professional deciding (K.1.D), or violate civil rights along with a few other things, but it's not outright prohibited as the headline could be interpreted.

Section K.1 of SB 1120

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm...

(old title was some thing like New California law prohibits using AI as basis to deny health insurance claims)

BolshoyToster@sh.itjust.works · 5 pts · 1y

The orphan crushing machine is prohibited from crushing orphans over the age of 7

jagged_circle@feddit.nl · 3 pts · 1y

Now do banks and all other companies too