North Carolina state legislators debated new restrictions on how artificial intelligence can be used in insurance underwriting and medical billing decisions. Lawmakers said automated systems that deny claims or set premiums without human oversight pose risks to patients and policyholders.
Proposed legislation would require insurers and health care providers to disclose when AI tools influence coverage or billing outcomes. Patients would gain the right to request human review of adverse decisions. Supporters said the measures protect against algorithmic bias and opaque decision-making.
Insurance industry groups argued that AI improves efficiency and can identify fraud, warning that excessive regulation could increase costs. Health care administrators said many billing systems already incorporate automated coding assistance that reduces errors. Consumer advocates cited cases where AI-driven denials delayed necessary treatment.
Similar bills are under consideration in other states as AI adoption accelerates across regulated industries. North Carolina’s General Assembly has held committee hearings but has not scheduled a floor vote. Legal experts said federal preemption questions could arise if state rules conflict with existing Medicare and Medicaid regulations.
Health policy advocates testified that algorithmic denials of insurance claims have increased as companies deploy machine learning tools. The North Carolina bill would require documentation of AI involvement in any adverse benefit determination and mandate appeals to licensed human reviewers.
Created by Ayen Stabel.
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Sources:
https://dailycuratednews.substack.com/p/news-headlines-may-22-2026