News•Feb 18, 2026
Red and Blue States Alike Want To Limit AI in Insurance. Trump Wants To Limit the States.
A bipartisan wave of state legislation is targeting the use of artificial intelligence in health‑insurance decisions, with at least nine states passing or proposing limits on AI‑driven claim denials and prior authorizations. President Trump’s December executive order seeks to preempt those state rules, arguing that excessive regulation stifles U.S. AI innovation. Insurers and trade groups warn that a patchwork of state mandates will increase compliance costs and slow patient‑care improvements, while the American Medical Association backs transparency measures. Legal scholars predict the federal preemption could be challenged on constitutional grounds.
