Committee passes bill requiring human review when AI recommends coverage denials

House Bill 1139 requires entities using AI in health-care claims processes to take into account a patient’s individualized medical records rather than relying solely on aggregated data, mandates disclosure of AI use and human oversight procedures to appropriate state agencies, and prohibits insurers from paying for psychotherapy services provided solely by an AI system.

Sponsor Senator Cutter and mental-health providers testified that clinical decision-making requires nuanced human judgment and that the bill is intended to prevent algorithmic denials that would leave patients without recourse. Andrew Rose of Boulder Emotional Wellness and Blair Skinner of MANCO described clinical risks if AI systems are allowed to operate without human review.

The committee adopted no amendments and sent the bill to the Committee of the Whole with a favorable recommendation.