Minnesota House Bans AI from Denying Insurance Prior Authorization
The Minnesota House passed legislation Saturday that prohibits health insurance companies from using artificial intelligence to deny prior authorization requests. The measure, included in HF 4188, now moves to the state Senate.
Rep. Alex Falconer (DFL - Eden Prairie) authored the provision. "There is already so much about our health insurance system that doesn't work for Minnesotans, the last thing we should be doing is removing the human element entirely," Falconer said. "Medical decisions should be made by medical providers, not profit-driven AI algorithms."
Why This Matters for Insurers
For-profit insurers have deployed AI systems to issue denials at a documented 90% error rate, according to the legislation's supporters. The systems routinely contradict medical providers' recommendations, delaying or blocking medication and ending hospital stays prematurely.
The high error rate persists partly because most people don't appeal denials-whether due to lack of awareness, resources, or time. Insurers have effectively relied on this pattern to sustain questionable decisions.
What the Bill Allows and Prohibits
The legislation draws a specific line: AI cannot be used to deny prior authorization. Health plans may still use AI to approve requests.
This distinction preserves automation for routine approvals while requiring human review for any denial. Medical professionals, rather than algorithms, will make the final call on contested cases.
For more on AI for Insurance and AI for Healthcare, see related resources.
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