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FLORIDA - Florida legislators are moving forward with a proposal that would restrict insurance companies from relying exclusively on artificial intelligence to determine whether a claim should be denied.
The measure, known as House Bill 527 and sponsored by Rep. Hillary Cassel, would require a qualified human reviewer to examine each claim decision and formally approve any denial.
The bill also directs insurers to document how AI tools were used during the evaluation process.
Cassel told lawmakers the proposal aims to address concerns about automation in the insurance market and ensure accountability when claims are rejected.
She said the bill establishes a safeguard by preventing algorithm-driven systems from acting as the final decision makers.
During committee review, lawmakers adopted an amendment expanding the bill to include workers compensation claims and health maintenance organizations.
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The change drew mixed reactions from stakeholders, who noted that employers are the policyholders in workers compensation cases and raised concerns about how added requirements could affect processing times and costs.
Cassel referenced national discussions about automated claims practices, including litigation alleging high error rates in AI-assisted denials.
She also noted public attention surrounding the 2024 fatal shooting of UnitedHealthcare CEO Brian Thompson.
According to investigators, the suspect, Luigi Mangione, allegedly acted in part over frustrations tied to insurance claim denials.
Mangione has pleaded not guilty, and the case remains ongoing.
HB 527 now heads to its final committee stop before it can be considered on the House floor.
A companion bill, SB 202, is sponsored in the Senate by Sen. Jennifer Bradley and contains similar provisions requiring human involvement in insurance claim decisions.