Colorado Enacts Landmark Protections on AI Use in Health Care

Colorado Enacts Landmark Protections on AI Use in Health Care

HB26-1139 Requires Human Oversight for Coverage Decisions, Bans AI-Provided Psychotherapy Billing

DENVER, CO — Governor Polis today signed House Bill 26-1139 into law, establishing Colorado as a

national leader in regulating the use of artificial intelligence in health care. The legislation, sponsored by

Representatives Junie Joseph and Sheila Lieder and Senators Lisa Cutter and Lindsey Daugherty, sets clear

guardrails for how AI may be used in insurance coverage decisions and mental health services.

Under the new law, health insurers, pharmacy benefit managers, managed care entities and other payers that use

AI in utilization review must ensure their systems base coverage determinations on individual patient medical

history and clinical circumstances. Any denial of coverage based must be reviewed by a licensed clinician or

physician before taking effect.

The law also addresses AI in mental health care. It prohibits billing public or private insurers for psychotherapy

services delivered directly by an AI system.