Arizona Bans Automated Insurance Denials, Requires Review

Arizona has enacted a bipartisan law banning health insurers from using automated computer systems to deny medical claims, instead requiring that a licensed physician personally review and use independent medical judgment before denying claims. The law, which takes effect in July 2026, follows similar measures in California and aims to ensure that patient care decisions are made by qualified professionals rather than algorithms. This legislative move comes amid growing concerns about healthcare access, as a recent Congressional budget bill threatens significant cuts to Medicaid, Medicare, and SNAP, worrying advocates about the impact on vulnerable populations in Arizona. Consumer Reports notes that nearly one in five in-network insurance claims are denied but can often be appealed, urging patients to seek assistance if necessary. The new law is seen as a step toward reinforcing healthcare accountability and protecting patients. The debate reflects ongoing tensions between cost-saving strategies and patient rights in the U.S. healthcare system.