- States are increasingly restricting AI-driven denials. Several states are moving to ensure AI cannot be the final authority on medical-necessity denials. Examples cited include Arizona’s bar on AI as the final decision-maker for denials and Iowa’s restrictions on AI as the sole mechanism to delay, downgrade or deny care.
- Transparency and timing requirements are becoming common. New laws are also targeting process discipline, such as Utah’s requirement to publicly post prior authorization metrics and disclose when AI is used, and Alaska’s deadlines for notifying patients of decisions (72 hours for routine requests and 24 hours for expedited requests).
- The regulatory landscape is fragmenting, raising multistate compliance risk. With states taking different approaches and some bills failing in certain jurisdictions, insurers and managed care organizations face a growing “constellation” of rules that may require updated workflows, documentation practices and governance to reduce enforcement and litigation exposure.
Media Mention
States Take Aim at Prior Authorization in Volley of New Laws
Health Payer Specialist
August 18, 2026Estimated Read Time: 1 min
Key Takeaways
Joel Dankwa was quoted in the Health Payer Specialist article “States Take Aim at Prior Authorization in Volley of New Laws” about a wave of new state laws tightening rules around health insurers’ use of prior authorization, with lawmakers citing delays in medically necessary care and growing concern that insurers are using automation and artificial intelligence to accelerate denials without adequate human oversight. The article reports that about a dozen states enacted prior authorization legislation in the first half of 2026, including measures aimed at limiting AI as a final decision-maker, increasing transparency and speeding up decision timelines. The patchwork of state approaches is expected to create compliance challenges for payers operating across multiple jurisdictions.
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