Prof. Daniel Schwarcz Quoted by USA Today About Use of AI in Health Insurance

Professor Daniel Schwarcz, Fredrikson & Byron Professor of Law and Distinguished University Teaching Professor, was quoted in USA Today about AI use in health insurance. Several states have enacted laws to limit AI-driven claim decisions but insurers have argued these rules create burdens. Prof. Schwarcz said that with legislation approved or pending in at least nine states, it’s unclear how much of an effect the state laws will have, and that states can’t regulate “self-insured” plans, which are used by many employers — only the federal government has that power. He added that there are deeper issues: Most of the state legislation he’s seen would require a human to sign off on any decision proposed by AI but doesn’t specify what that means. The laws don’t offer a clear framework for understanding how much review is enough, and over time humans tend to become a little lazy and simply sign off on any suggestions by a computer, he said.