MMA Priority AI Utilization Review Language Heads to Conference Committee

May 14, 2026

Legislation that would explicitly prohibit health insurance companies from using artificial intelligence (AI) in adverse utilization review decisions continues to have life at the Capitol.  

The MMA priority bill, SF 1856 (Maye Quade, DFL – Apple Valley), was contained in  the Commerce Policy Omnibus bill SF 4365 (Klein, DFL – Mendota Heights) that passed off the Senate floor on April 29.  The legislation does not limit the ability of health insurance companies to use AI to process claims and approve care – only that if there is a denial, an actual person must make the decision. 

The House companion, HF 4188 (Koegel, DFL – Spring Lake Park) does not include the MMA-supported language addressing the use of Ai in adverse utilization review decisions. Given the differences between the two proposals, a conference committee has been convened to negotiate a final compromise. If identical language is agreed upon, the legislation will return to both the House and Senate for final passage before being sent to the Governor for signature. 

The proposal comes amid growing national concern regarding the use of AI in prior authorization and utilization review. Recent findings from the American Medical Association (AMA) 2025 Prior Authorization Physician Survey demonstrates that 74% of physicians report that denials have increased over the past five years, while 60% express concern that AI may further increase denial rates and negatively impact patient outcomes.