AZ HB 2175 (AI Insurance Denial — Physician Review)
Arizona HB 2175 — Physician Review Required Before AI-Based Health Insurance Denial
Arizona · Ariz. HB 2175 (57th Leg., 1st R.S. 2025), signed May 12, 2025, eff. July 1, 2026
- Status
- In effect
- Took effect
- July 1, 2026
- Applies to
- Health insurers, managed care organizations, and utilization review entities operating in Arizona
- Enforced by
- Arizona Department of Insurance and Financial Institutions (DIFI)
Arizona HB 2175 requires health insurers and managed-care organizations to have a licensed physician or medical director individually review each case before denying a health insurance claim or prior-authorization request based on medical necessity or experimental status. Insurers may not rely solely on AI algorithms, automated decision-support tools, or algorithmic recommendations to deny coverage. The law directly targets automated prior-authorization systems that issue denials without physician involvement. Signed May 12, 2025, effective July 1, 2026. Arizona is among the first states to specifically prohibit AI-only health insurance denials by statute.
Who is protected: Arizona health insurance policyholders whose claims or prior authorizations are subject to AI-assisted review
Legal detail
AZ HB 2175 (57th Leg., 1st R.S., signed May 12, 2025, eff. July 1, 2026). Amends Arizona insurance law to require: (1) before a health insurer or managed care organization may deny a claim or prior authorization request on the basis of medical necessity, experimental treatment, or similar clinical grounds, a licensed physician or medical director must individually review the specific case; (2) insurers may not use AI-generated recommendations, algorithmic outputs, or automated clinical decision-support tools as the sole basis for a denial. The prohibition applies to prior authorization, utilization review, and claims-level denials. Does not prevent AI tools from assisting review if a licensed physician makes the final determination. Companion to California SB 1120 (Physicians Make Decisions Act, eff. Jan. 1, 2025) and Georgia SB 444 (AI insurance denial ban, 2026).
Key facts
| Jurisdiction | Arizona |
|---|---|
| Level | State |
| Strength | Moderate |
| Enacted | May 12, 2025 |
| Citation | Ariz. HB 2175 (57th Leg., 1st R.S. 2025), signed May 12, 2025, eff. July 1, 2026 |
| Topics | insurance AI · healthcare AI · automated decision-making · consumer protection |
| News report | New Arizona law prevents AI from making health insurance denials — AZFamily |
More AI rules in Arizona
- AZ Ct. App. — AI fake citations sanctionable regardless of intent · In effect
- Arizona HB 2311 AI chatbot safety for minors — vetoed 2026 · Vetoed
- Arizona HB 2592 AI state agencies — vetoed 2026 · Vetoed
- Arizona HB 2133 deepfake sexual content — vetoed 2026 · Vetoed
- Arizona HB 2678 — AI-generated CSAM criminalized · In effect
- Arizona 3-year data center tax exemption pause · In effect
Related insurance AI rules elsewhere
- NYDFS CL 7 (2024) — Insurance AI Anti-Discrimination · In effect
- NAIC AI Evaluation Tool Pilot (12 states, 2026) · Proposed / pending
- TX TDI Bulletin B-0003-26 (AI in insurance) · In effect
- Illinois SB 3114 — Transparency in Downcoding Act · Enacted (not yet in effect)
- PA AG — GEICO AI Underwriting Settlement · In effect
- Nebraska LB 77 (no AI-only prior-auth denials) · In effect
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