Technology (Artificial Intelligence)

SF 562 regulates how health insurers use artificial intelligence in reviewing medical treatments. It requires insurers to ensure AI tools used for prior authorization decisions (like whether a treatment is medically necessary) cannot replace doctors' judgment, must base decisions on patient history and clinical circumstances, and must be non-discriminatory. The bill also sets strict timelines: insurers must respond to urgent requests within 48 hours and non-urgent requests within 10 days, with extensions only for complex cases. Additionally, insurers must publicly post annual statistics on approval/denial rates for all treatments requiring prior authorization. This bill directly affects health insurers, healthcare providers, and patients by increasing transparency and accountability in insurance review processes.