Washington SB 5395 - AI in Health Insurance Prior Authorization

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Effective

Overview

Regulates use of AI in health insurance prior authorization decisions. Requires human review of AI-generated denials.

This is an AI-specific state law.

Who this applies to

This regulation applies to companies that use or deploy AI tools and systems built by other vendors. If your company uses AI-powered products in the areas listed below, this regulation may apply to you.

AI categories covered

  • Healthcare AI
  • Insurance

Specific AI use cases:

  • Insurance prior authorization

What this requires you to do

  • Human oversight required

    Ensure human oversight. A human must be able to review and override AI-driven decisions.

  • Transparency notice required

    Provide transparency notices. Inform affected individuals that AI is being used and how it influences decisions.

  • Record-keeping required

    Maintain records. Keep documentation of your AI systems, decisions made, and compliance activities.

Enforcement and penalties

Enforced by Washington Office of Insurance Commissioner.

Source

Read the full text

https://app.leg.wa.gov/billsummary?BillNumber=5395&Year=2025

Always verify current language and amendments at the official source.

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