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California: Bill on medical treatment and AI signed by Governor
On September 28, 2024, Senate Bill 1120 to amend Section 1367.01 of the Health and Safety Code, and to amend Section 10123.135 of the Insurance Code, relating to health care coverage was signed by the Governor of California into law following its introduction to the California State Senate on February 13, 2024.
The Act requires a healthcare service plan or disability insurer, including a specialized healthcare service plan or specialized health insurer, that uses artificial intelligence (AI), algorithms, or other software tools for the purpose of utilization review or utilization management functions, or that contracts with or otherwise works through an entity that uses that type of tool, to ensure compliance with specified requirements. Such requirements include that the AI, algorithms, or other software tools base determinations on specified information and are fairly and equitably applied.
You can read the Act here and view its legislative history here.
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