In 2024, California Governor Gavin Newsom enacted over 1,300 bills while vetoing almost 190, continuing a trend of legislative activity that notably impacts the health care industry. With the emphasis on ensuring compliance ahead of the laws coming into effect on January 1, 2025, a significant focus has been placed on the integration of artificial intelligence (AI) in health care practices.
Key provisions enacted through Assembly Bill 3030 (AB-3030) aim to regulate AI usage in patient communications. This legislation mandates that any AI-generated communication involving clinical information must include a disclaimer. It should state that the information was produced using generative AI and provide guidance on how patients can reach a human health care provider. The requirement of the disclaimer applies to both written and oral communications across various health facilities, clinics, and physician's offices. However, licensed health care professionals do not need to include the disclaimer if they review the AI-generated communication prior to its distribution.
Another significant advancement in the legislative focus on AI is found in Senate Bill 1120 (SB-1120), which addresses AI's role in the process of prior authorisations within health care service plans and disability insurers. The bill compels these organisations to ensure that any AI-enabled tools used for assessments of medical necessity comply with defined procedural requirements. Specifically, the law prohibits final medical necessity determinations from being made solely by AI systems, reserving such authority for qualified health care professionals who must consider providers' recommendations and individual patient clinical histories.
Additionally, other health care-related bills include Assembly Bill 2107 (AB-2107), which updates regulations surrounding the remote review of clinical laboratory tests, and Assembly Bill 2297 (AB-2297), which expands eligibility for charity care among emergency physicians and alters previous stipulations concerning the calculation of eligibility.
New legislation, such as SB-1061, addresses the sensitive issue of consumer medical debt, restricting health care providers from reporting medical debt information to credit agencies. Hospitals are now required to notify both insured individuals and providers when payments are sent directly to the insured, with specific reporting obligations introduced related to outstanding debts.
The renewed focus on maternity and psychiatric care facilities is exemplified by SB-1300, which extends the public notice period required before the closure of such units from 90 to 120 days. This law mandates a public hearing to gather community feedback on the potential impacts before any closure can occur.
Lastly, AB-3275 has been enacted to accelerate reimbursement processes for claims against health care service plans, reducing the timeframe from 45 calendar days to 30, with increased penalties imposed for late payments.
Overall, these legislative developments reflect a comprehensive effort to adapt existing healthcare frameworks to the fast-evolving landscape influenced by emerging technologies, particularly in AI, while simultaneously aiming to protect patient rights and ensure equitable access to care.
Source: Noah Wire Services