NC Senate looks to restrict AI in healthcare billing, insurance

NC Senate looks to restrict AI in healthcare billing, insurance

NC Senate looks to restrict AI in healthcare billing, insurance

https://www.wunc.org/politics/2026-05-28/nc-senate-restrict-ai-healthcare-billing-insurance

Publish Date: 2026-05-28 15:47:00

Source Domain: www.wunc.org

  • Sen. Amy Galey is sponsoring a bill (House Bill 565) to regulate the use of AI in healthcare billing and insurance to prevent increased costs and denied claims.
  • Galey’s proposed legislation aims to impose guardrails for both insurance companies and healthcare providers concerning AI-related billing decisions.
  • The bill intends to ban insurers from denying coverage for treatments based solely on AI reviews and would prevent providers from using AI to upcode services without human approval.
  • There are concerns that AI is being programmed to increase billing for expensive services without improving patient outcomes, thereby raising overall healthcare costs.
  • Hospitals and the N.C. Healthcare Association have voiced concerns, suggesting AI can streamline administrative tasks, allowing more time for patient care.
  • The bill is set for its first Senate committee approval next week following a recent committee hearing.