AMA and Lawmakers Target AI-Driven Prior Authorization Denials by Health Plans
The American Medical Association and members of Congress are pushing back against health insurers' use of artificial intelligence to deny prior authorization requests and coverage determinations. The scrutiny follows an HHS Office of Inspector General report documenting denial patterns by Medicare Advantage plans. Lawmakers are considering legislation to increase transparency and oversight of AI-driven utilization management tools. The controversy affects all payer types, including Medicaid managed care organizations that increasingly rely on automated systems for prior authorization and care management decisions.
Medicaid MCOs using AI-powered utilization management face heightened regulatory and legislative scrutiny that could result in new transparency requirements, appeal process changes, or restrictions on automated denials.
Managed Care
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