The Arizona AI Health Insurance Law (HB 2175) prohibits health insurers from using artificial intelligence to deny claims or prior authorization requests on grounds of medical necessity or any other reason involving medical judgment. It is among the first laws of its kind in the country. Signed May 12, 2025, it has been in effect since July 1, 2026.
What the Arizona AI Health Insurance Law Requires
As of July 1, 2026, a licensed physician acting as medical director must exercise independent medical judgment and personally review any denial. The human review requirement applies to every denial that rests on medical necessity or medical judgment, so an algorithm can never be the final word on those decisions.
What Insurers Can Still Do
Insurers can still use AI for administrative processing, which leaves room for automation in routine paperwork and workflow tasks. The final call on medically based denials, however, must be human. The bill passed both chambers with strong bipartisan support, signaling broad agreement on keeping physicians in charge of coverage decisions.
Source: Arizona State Legislature: HB 2175
Report a violation: If you believe a business is violating this law, you can file a complaint with the Arizona Attorney General Consumer Protection.
