A new Arizona law will soon require that a licensed physician review any health insurance denial involving medical necessity, marking a shift in how insurers make care-related decisions. House Bill 2175, sponsored by House Majority Whip Julie Willoughby, was signed into law after receiving strong bipartisan support.

The law, which takes effect July 1, 2026, mandates that any denial of medically necessary care—whether for insurance claims or prior authorizations—must be reviewed by an Arizona-licensed medical director. That review must involve independent medical judgment and cannot rely solely on automated systems or algorithms.

Supporters of the bill say the measure addresses increasing concerns over the use of artificial intelligence and automated tools in determining whether care is covered. The goal, according to lawmakers, is to ensure that decisions affecting patient care are made by qualified medical professionals rather than computer programs.

"This law ensures that a doctor, not a computer, is making medical decisions," said Willoughby. "If care is denied, it should be by someone with the training and ethical duty to put patients first."

The legislation is part of a broader push by lawmakers to improve transparency and accountability in the healthcare system. It reflects ongoing debates nationwide about the role of automation in medicine and how to balance efficiency with patient-centered care.

Under the new rules, insurance companies will have until mid-2026 to adjust their internal review processes to comply with the physician oversight requirement.

While many healthcare advocates have praised the law for emphasizing human oversight, some industry groups have raised questions about potential impacts on administrative costs and processing times.