New Arizona Law Forces Doctors to Review All Health Insurance Denials

In a landmark move to protect Arizona families, Governor Katie Hobbs has signed into law a bill requiring health insurance companies to have a licensed physician review any denial of medically necessary care. This measure, spearheaded by House Majority Whip Julie Willoughby, aims to ensure that medical decisions are made by qualified professionals rather than relying solely on artificial intelligence or automated systems.

Under the new law, HB2175, any denial involving medical necessity—whether for a claim or a prior authorization—must be reviewed by an Arizona-licensed medical director who will use their independent medical judgment to make the final decision. This decision-making process, which goes into effect on July 1, 2026, is designed to replace the previous system where algorithms and automated systems determined the approval or denial of care, often without human oversight.

“This law ensures that a doctor, not a computer, is making medical decisions,” said Willoughby, who sponsored the bill. “If care is denied, it should be by someone with the training and ethical duty to put patients first. That decision must come from a licensed physician, not an anonymous program.”

The push for this legislation comes in response to growing concerns that insurers were increasingly using algorithm-based tools and artificial intelligence to automate coverage decisions. Many patients found themselves in situations where critical medical treatments were denied by systems that lacked the nuance and empathy of human oversight. This new law ensures that any decision about the medical necessity of care is made by a medical professional who is fully accountable to Arizona’s patients and regulatory standards.

This legislation advances the goals set out in the House Republican Majority Plan to ensure better oversight and greater accountability in the health insurance industry. By raising the standard for how care decisions are made, HB2175 seeks to protect individuals’ rights, reduce the likelihood of wrongful denials, and increase transparency in the healthcare system.

The law also reflects the priority placed on patients over profits, with Willoughby emphasizing that this reform restores a necessary layer of accountability that was previously missing. “Arizona families deserve real oversight when it comes to life-changing medical decisions,” she added. “This law puts patients ahead of profits and restores a layer of accountability that’s long overdue.”

As the new law gives insurers time to comply, it marks a significant step forward in protecting the rights of patients. By mandating that licensed physicians make decisions regarding medical care, HB2175 promises to offer better patient outcomes and greater confidence in the healthcare system.

Julie Willoughby represents Legislative District 13, which covers Chandler, Gilbert, and Sun Lakes, has long been an advocate for patient rights and accountability in healthcare. She also serves as the House Majority Whip and continues to work toward ensuring that Arizona families have the resources and protections they need when it comes to healthcare decisions.