California SB 1120 — Physicians Make Decisions Act (AI prior authorization limits)
CA · Cal. Stats. 2024 Ch. 879; Cal. Health & Safety Code § 1367.01
California prohibits health insurers from using AI or algorithms to deny, delay, or modify medical care — only a qualified physician can make a coverage denial. The law applies to all California-regulated health plans, including commercial, Medi-Cal managed care, and Knox-Keene plans.
Technical detail
Cal. Stats. 2024 Ch. 879 (SB 1120) codified at Cal. Health & Safety Code § 1367.01 and Cal. Ins. Code § 10123.135. Requires that any decision to delay, deny, or modify health care services based on medical necessity be made by a licensed physician or licensed clinical professional. Prohibits AI from making the final adverse determination.
Who is protected: California enrollees in commercial and Medi-Cal managed care health plans
Who must comply: Health care service plans (Knox-Keene), disability insurers offering health coverage in California
Key facts
| Jurisdiction | CA |
|---|---|
| Level | State |
| Status | In effect |
| Protection strength | Moderate protection |
| Effective date | 2025-01-01 |
| Enacted | 2024-09-28 |
| Citation | Cal. Stats. 2024 Ch. 879; Cal. Health & Safety Code § 1367.01 |
| Enforced by | California Department of Managed Health Care; California Department of Insurance |
| Private right of action | No — agency enforcement only |
| Penalties | DMHC administrative penalties up to $50,000 per violation under Cal. Health & Safety Code § 1368.04; license actions |
| Topics | healthcare AI · automated decision-making · consumer protection |
| Last verified | 2026-06-17 |
| Official source | California SB 1120 (2024) — Physicians Make Decisions Act ↗ |
More AI rules in CA
- CA AB 2148 no-AI school employees (2026) · Enacted (not yet in effect)
- CA AG Bonta · In effect
- CA Bar GenAI Guidance · In effect
- CA CPPA ADMT Regs · In effect
- CA AB 2655 (deepfake takedown) · Blocked / in litigation
- CPPA Honda ADMT settlement · In effect
Related healthcare AI rules elsewhere
- Missouri AI Therapy Chatbot Ban (SB 1019) · Enacted (not yet in effect)
- PA v. Character.AI (Fake Psychiatrist Chatbot) · Blocked / in litigation
- RI Therapy Chatbot Ban (2026) · In effect
- RI AI Companion Self-Harm Safety (2026) · In effect
- Georgia SB 544 (health insurer AI) · Enacted (not yet in effect)
- Indiana HB 1271 (AI claims downcoding) · In effect
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