The Alabama AI Prior Authorization Law (SB 63) prohibits health insurers from relying exclusively on artificial intelligence to make coverage determinations. This 2026 law takes effect on October 1, 2026, and applies directly to how insurers handle prior authorization.
What the Alabama AI Prior Authorization Law Requires
AI-assisted prior authorization decisions must be based on the individual patient’s medical history and clinical circumstances as presented by the treating provider. A human, not an algorithm, must make the final decision to deny or reduce coverage. In practice, AI can assist the process, but it cannot be the last word on a denial.
Annual Certification to the State
Insurers must also certify annually to the Alabama Department of Insurance that their AI does not rely on group datasets in place of individual review, does not discriminate against subscriber groups, and is periodically monitored for accuracy. That certification duty makes AI oversight an ongoing compliance task rather than a one-time checkbox.
For health plans and their technology vendors operating in Alabama, the message is simple. Automation can support coverage reviews, but a person remains responsible for every adverse decision.
Source: Alabama Legislature: SB 63
Report a violation: If you believe a business is violating this law, you can file a complaint with the Alabama Attorney General Consumer Interest Division.
