North Carolina senators consider new restrictions on artificial intelligence in insurance and medical billing

North Carolina senators consider new restrictions on artificial intelligence in insurance and medical billing

North Carolina senators consider new restrictions on artificial intelligence in insurance and medical billing

https://www.route-fifty.com/artificial-intelligence/2026/05/north-carolina-senators-consider-new-restrictions-artificial-intelligence-insurance-and-medical-billing/413691/

Publish Date: 2026-05-21 11:00:00

Source Domain: www.route-fifty.com

  • Senator Amy Galey proposed a committee substitute to House Bill 565 aimed at regulating the use of artificial intelligence (AI) in medical research, treatments, and hospital billing.
  • Galey highlighted that AI in medical settings could contribute to increased healthcare costs by potentially selecting the most lucrative billing codes for diagnoses.
  • The bill would prohibit health insurers from denying claims based solely on AI and require human oversight for AI decisions.
  • Opponents like Sen. Gale Adcock argued that the bill was one-sided and did not address the enforcement of existing rules against upcoding.
  • Sen. Natalie Murdock expressed the need for further input from the healthcare community to ensure the legislation is workable.
  • Blair Borsuk from the North Carolina Healthcare Association emphasized the complexity of AI in coding and billing and the need for appropriate regulation.
  • A second committee hearing on the bill was canceled.