STATE CAPITOL, PHOENIX –  Health insurance companies in Arizona can no longer deny medically necessary care without a licensed physician first reviewing the case, under a new law signed into law. Sponsored by House Majority Whip Julie Willoughby, HB2175 passed both chambers with strong bipartisan support.

The law requires an Arizona-licensed medical director to personally review any denial involving medical necessity—whether for a claim or a prior authorization—and to exercise independent medical judgment, not rely solely on algorithms or automated systems.

“This law ensures that a doctor, not a computer, is making medical decisions,” said Majority Whip Willoughby. “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.”

HB2175 takes effect July 1, 2026, giving insurers time to comply.

The legislation responds to growing concerns about insurers using artificial intelligence and algorithm-based tools to automate coverage decisions without physician oversight. Under the new law, such denials must be reviewed by a medical professional accountable to Arizona patients and standards.

The policy advances the House Republican Majority Plan’s goal of protecting individual rights and ensuring accountability in systems that affect Arizona families. By raising the standard for how care decisions are made, the law helps guard against wrongful denials and promotes greater transparency in healthcare.

“Arizona families deserve real oversight when it comes to life-changing medical decisions,” Majority Whip Willoughby added. “This law puts patients ahead of profits and restores a layer of accountability that’s long overdue.”

Julie Willoughby is a Republican member of the Arizona House of Representatives serving Legislative District 13 in Chandler, Gilbert, and Sun Lakes. She also serves as the House Majority Whip. Follow her on X at @JWilloughbyAZ.