Physicians Celebrate New Law to Regulate Artificial Intelligence in Healthcare, Medical Claims

May 13, 2025

The Arizona Medical Association and other healthcare advocacy groups applaud Governor Katie Hobbs and the Arizona State Legislature for safeguarding patients from the inappropriate use of Artificial Intelligence.

PHOENIX, Arizona — The Arizona Medical Association celebrates the historic passage of House Bill 2175, which was signed by Governor Katie Hobbs on Monday, May 12. The legislation — introduced by ArMA and sponsored by Representative Julie Willoughby — sets a national precedent for regulating and safeguarding patients from the use of Artificial Intelligence in commercial medical insurance.

HB2175 is among the first legislation of its kind in the U.S. to prohibit medical insurance companies from using AI as the final decision-maker in the review and denial of claims for medical necessity and prior authorization requests. Once in effect, the bill guarantees cases requiring medical judgment are reviewed by licensed medical professionals with the training, experience, and ethical responsibility to make clinical decisions.

The gap between AI’s application and its regulation is wide, meaning its use across all industries, especially healthcare, is going largely unregulated across the nation.

“While AI promises innovation for healthcare, the review and denial of medical claims — some of which represent life-changing treatments and procedures — should be left to physicians who can make nuanced clinical judgments about each patient’s unique healthcare needs,” stated ArMA President Nadeem Kazi, MD. “In healthcare, there are no simple, straightforward cases. Each patient’s medical needs are nuanced and best understood by trained professionals — and they should be treated as such.”

Throughout its journey, HB2175 received nearly unanimous support from the Arizona State Legislature. Elected officials and healthcare advocates agree that Arizona patients deserve healthcare delivered by humans with compassionate medical expertise, not pattern-based computer algorithms designed by insurance companies.

“As a nurse, I was proud to champion HB2175 and put Arizona on the forefront of addressing emerging technology in healthcare,” said Rep. Willoughby. "I’ve seen firsthand how insurance denials can inappropriately interfere with patient care and wreak havoc on our health system. The need for reform to ensure that AI is used in a fair and responsible manner was undeniable; 2175 takes a meaningful step forward to halt the use of AI in medical decision-making.”

In a recent interview with Arizona Horizon, ArMA Board Member and private practice owner Michael Dunn, MD, recounted his experience of dealing with AI-denied medical claims. He explained how denials driven by insurer-created algorithms are often obvious because they don’t follow clinical logic. So, while reportedly aimed at creating new efficiencies, insurers’ implementation of AI in the medical claim denial process is hindering physicians and the patients they serve.

“Physicians and patients already face daunting challenges in navigating medical insurers’ bureaucratic administrative processes,” shared Dr. Dunn. “Taking physicians’ clinical experience out of these processes entirely is a misguided step that inflates healthcare costs, increases frustration for patients and physicians, and worsens patients’ health outcomes.”

ArMA proudly introduced HB2175 earlier this year with overwhelming support from the healthcare community, including Yuma Regional Medical Center, Arizona Chronic Care Together, the Arizona Osteopathic Medical Association, the Arizona Nurses Association, the Health System Alliance, the Arizona Hospital & Healthcare Association, the Arizona Pharmacy Association, and the Arizona Alliance for Community Health Centers.

Once in effect next year, HB2175 will be the first state law to regulate AI’s implementation in healthcare and the second of its kind in the nation.

ADHS Issues Standing Orders for Flu, COVID-19 Vaccine Access

By Admin User • September 18, 2026
Statewide orders keep pharmacists and physicians authorized to vaccinate Arizonans amid uncertainty over the next ACIP meeting. Statewide Orders Cover the 2026-27 Flu & COVID Season The Arizona Department of Health Services has issued statewide standing orders supporting access to the 2026-27 influenza and COVID-19 vaccines approved by the U.S. Food and Drug Administration. Arizonans seeking a flu or COVID-19 vaccine should contact their physician or pharmacy to confirm availability. Why the Orders Were Issued Arizona pharmacists may administer vaccines recommended by the Advisory Committee on Immunization Practices, vaccines recommended by the Centers for Disease Control and Prevention for international travel, or vaccines authorized under a prescription, including a physician-issued public health standing order. With the timing of the next ACIP meeting uncertain, ADHS worked with the Arizona Board of Pharmacy to issue statewide standing orders for the flu and COVID-19 vaccines, which function as a prescription allowing pharmacists and physicians across Arizona to administer them to anyone who wants one. ADHS Medical Advisor Weighs In "Vaccines are one of the most important tools we have to protect our communities. The Influenza and COVID-19 vaccines have been proven safe and effective at preventing severe illness, hospitalization, and death. Vaccines help us limit the spread of disease, reduce pressure on our healthcare system and reduce costs," said Dr. Richard Carmona, ADHS public health medical advisor and the 17th U.S. Surgeon General. "We have issued these standing orders to ensure safe and timely access to the vaccines in alignment with scientific and evidence-based guidance." What Arizonans Should Know The standing orders do not require every pharmacy to offer vaccinations, and they do not guarantee insurance coverage for administration. Coverage and out-of-pocket costs vary by plan, so Arizonans should check with their insurance provider before scheduling an appointment. 

Arizona Asks Supreme Court to Halt Prison Health Care Takeover

By Admin User • September 18, 2026
State attorneys seek an emergency stay after lower courts reject bids to delay receivership of the prison health care system. State Makes a Last-Ditch Appeal Attorneys for the Arizona Department of Corrections, Rehabilitation and Reentry asked the U.S. Supreme Court this week to delay a court-ordered receivership of the state's prison health care system. The request comes after both a federal district court and the 9th U.S. Circuit Court of Appeals declined to pause the takeover. In the recent application, former U.S. Solicitor General Paul Clement, a representative of the department, argued that the state deserves more time to make its case before surrendering control of its operations, including oversight of its employees and health care budget. Roots of the Case The dispute began in 2012 when inmates sued the department, alleging the prison system's inadequate medical, mental health, and dental care amounted to cruel and unusual punishment under the Eighth Amendment. The case went through years of litigation and a failed settlement agreement. In 2023, U.S. District Judge Roslyn Silver ruled that the health care system was "grossly inadequate." The court ordered the prison healthcare system to comply with more than 150 "quality indicators," but according to court-appointed monitors, the department failed to comply with 131 of the measures. In light of this finding, Silver named Annette Chambers-Smith, former director of the Ohio Department of Rehabilitation and Correction, to take over as receiver effective Oct. 19. Arguments on Both Sides Clement argues receivership should be the last resort and that Silver moved to it too quickly. He asserts that the department has made measurable progress, including growing its health care staffing by more than 50%, expanding substance-use treatment access, and adopting a new care model. Corene Kendrick, deputy director of the American Civil Liberties Union National Prison Project, which represents the roughly 25,000 people incarcerated in Arizona prisons, called the department's request a "Hail Mary" and said Silver had given the department years of opportunities to comply before ordering receivership. What Happens Next The Supreme Court has not yet set a deadline for the plaintiffs to respond to the stay request. Separately, the 9th Circuit is now reviewing the merits of the receivership order itself. The department filed its opening brief on Sept. 15, and the plaintiffs' response is due Oct. 15. Information in this article was sourced from the Arizona Mirror .