17 States Pass AI Restrictions on Prior Authorization and Care Denials in 2025 Session

Seventeen states enacted 27 laws in 2025 regulating artificial intelligence use in healthcare, with multiple states prohibiting health plans from relying solely on AI for prior authorization and coverage denials without physician review. The legislation directly affects how Medicaid managed care organizations can deploy AI tools for utilization management, requiring human clinician oversight of AI-generated decisions. While the tracker covers broader healthcare AI policy, the payor-focused provisions have immediate compliance implications for MCO operations.

Managed Care

This is outside commentary from Manatt Health, not part of Medicaid Monitor's independently scored news coverage.

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