Sen. Arthur Orr, R-Decatur (top) listens to Sen. Larry Stutts, R-Tuscumbia on the floor of the Alabama Senate on Jan. 14, 2026 at the Alabama Statehouse in Montgomery, Alabama. The Senate Health Care Committee approved Orr's bill Wednesday, which would regulate the usage of AI in determining health care coverage. (Brian Lyman/Alabama Reflector)
An Alabama Senate committee Wednesday approved a bill that would regulate the use of artificial intelligence (AI) in determining health care coverage.
SB 63, sponsored by Sen. Arthur Orr, R-Decatur, does not ban the use of AI when health insurers determine what is and is not covered by health insurance plans. It requires a health care professional to make the final decision when coverage is denied.
“If it’s approved, then there won’t be another evaluation of what the decision was,” said Sen. Tim Melson, R-Florence, chair of the Senate Health Care committee, who carried the bill in Orr’s absence.
GET THE MORNING HEADLINES.
The bill also requires health insurers to “make prominent written disclosure” if AI was used to determine coverage. Insurers must do this for sponsors of group plans and for enrollees of individual plans, according to the bill.
If an insurer does not re-evaluate coverage after AI denies a reduction of coverage or disclose the use of AI to enrollees multiple times, the bill requires the Alabama Department of Insurance to take disciplinary action against insurers.
Jennifer Bowen, public information officer for the department, said in a statement Wednesday afternoon that the department does not have a position on the bill.
“Insurance companies often use AI in their processes. The Department believes it’s important that AI be used in a fair manner, that personal privacy is protected and that a human is involved, especially in the case of denials,” Bowen said in a statement.
Sophie Martin, director of corporate communications and community relations for Blue Cross Blue Shield of Alabama, the state’s largest insurer, said in a statement Wednesday afternoon that BCBS does not use AI to determine health coverage.
“While we do evaluate emerging technologies to improve administrative efficiency, we remain committed at this time to ensuring that determinations affecting our members’ care are made through a thorough, human‑led review process,” Martin said in a statement.
The bill moves to the full Senate.
This story was updated Wednesday at 3:56 p.m. to include a statement from Blue Cross Blue Shield of Alabama.
From Alabama Reflector Post Url: Visit
Author: Anna Barrett