Arizona Governor Katie Hobbs signs HB2175 into law

PHOENIX (KYMA, KECY) - Arizona Governor Katie Hobbs signed a bill where health insurance companies in the state "can no longer deny medically necessary care without a licensed physician first reviewing the case."

House Bill (HB) 2175, sponsored by State House Majority Whip Julie Willoughby (R-District 13), is said to have passed in both chambers "with strong bipartisan support."

The law is said to require state-licensed medical directors "to personally review any denial involving medical necessity," whether it's for a claim or a prior authorization, and "exercise independent medical judgement" and not use algorithms or automated systems.

"This law ensures that a doctor, not a computer, is making medical decisions," said Willoughby. "If care is denied, it should be by someone with the training and ethical duty to put patients first. That decision must come from a licensed physician, not an anonymous program."

HB2175 was created in response to "growing concerns about insurers using artificial intelligence and algorithm-based tools to automate coverage decisions without physician oversight."

Under this law, denials must be reviewed by medical professionals in the state of Arizona "accountable to Arizona patients and standards," according to a press release.

"Arizona families deserve real oversight when it comes to life-changing medical decisions," Willoughby added. "This law puts patients ahead of profits and restores a layer of accountability that's long overdue."

HB2175 will take effect next July, thus giving insurers more time to comply.