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HB 4537

Human services: medical services; use of artificial intelligence tools to make decisions regarding claims; prohibit. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 107b.

2025-2026 Regular Session Introduced by Kelly Breen and 10 co-sponsors

Michigan bill prohibits AI from making final medical claims decisions in public assistance programs, requiring mandatory human review before any claim denial or approval takes effect.

re-referred to Committee on Communications and Technology
#communications:artificialintelligence #humanservices:medicalservices
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Bill Summary · HB 4537

Legislative bill overview

HB 4537 would prohibit the use of artificial intelligence tools to make final decisions regarding medical services claims under Michigan's public assistance programs (governed by the 1939 Public Assistance Act). The bill adds a new section requiring that any AI-generated recommendations must be reviewed and approved by a human decision-maker before affecting claim determinations.

Why is this important

Medical claims denials directly impact vulnerable populations' access to healthcare services. This bill addresses growing concerns about algorithmic bias, errors, and lack of accountability when AI systems autonomously deny or approve claims without human oversight. The real-world consequence is that beneficiaries could be denied necessary medical services based on opaque algorithmic decisions.

Potential points of contention

  • Administrative burden and costs: Requiring human review of all AI recommendations could significantly increase processing times and state expenses, potentially slowing claim approvals for patients who need timely care
  • Definition and scope ambiguity: The bill doesn't clearly define what constitutes an "AI tool" or "decision," creating uncertainty about which existing systems would be affected and whether it applies to AI-assisted analysis versus autonomous decision-making
  • Efficiency trade-offs: Government agencies argue AI tools improve consistency and reduce errors; restricting them entirely may eliminate legitimate efficiency gains, though advocates counter that efficiency shouldn't override accuracy and fairness

Compiled from official sources — confirm details with the bill’s official record.

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