Lawmakers Address AI Regulations in Health Care and Mental Health Services

Mar 14, 2026, 2:18 AM
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As artificial intelligence (AI) technology advances, state lawmakers are increasingly focused on its implications for health care and mental health services. Recent legislative efforts aim to regulate the use of AI, ensuring that its integration into these critical areas prioritizes patient safety and privacy.
In Vermont, two significant bills—H.814 and H.816—are under consideration to address these concerns. Bill H.814 seeks to regulate chatbots that serve as substitutes for mental health professionals, mandating disclosures regarding the use of generative AI in health care settings. It also restricts health plans from using AI in ways that could harm patient care, such as denying or modifying treatments based on AI evaluations without human oversight. Patients would need to consent to share their health data, which must be destroyed within ten days upon revocation of consent.
Lynn Currier, executive director of the National Association of Social Workers, supports H.814, arguing that it sets necessary standards for emerging technologies. She raised alarms about the use of AI therapy chatbots, labeling them as potentially "dangerous" due to the risks of unlicensed practice. Meanwhile, Dr Rick Barnett, chair of the Legislative Committee for the Vermont Psychological Association, emphasized the importance of balancing regulation to avoid stifling beneficial tools.
In California, similar legislative efforts are taking shape. Senator Steve Padilla introduced Senate Bill 903, which aims to ensure that therapy services remain under the supervision of licensed professionals, rather than being delegated to AI systems. This bill emerges in response to a growing trend where consumers increasingly turn to AI for mental health support, especially in areas with a shortage of providers.
SB 903 prohibits unlicensed AI therapy services, requiring that any therapeutic interactions be conducted by licensed professionals. It also imposes strict conditions on how licensed professionals can utilize AI, ensuring that AI does not make independent therapeutic decisions or directly interact with clients. The bill is designed to protect consumers from potential data privacy violations and the risks associated with AI's inability to detect nuanced emotional cues essential for effective therapy.
While these state-level initiatives are gaining traction, there are broader concerns regarding the role of AI in health care at the federal level. The Centers for Medicare & Medicaid Services (CMS) is set to launch a pilot program that allows private companies to use AI for prior authorizations in traditional Medicare. Critics of this initiative argue that it could lead to increased barriers for patients, as these AI systems could prioritize cost-saving measures over patient care.
The new AI-driven prior authorization model has been met with skepticism, especially given its potential to deny necessary services based on algorithmic decisions rather than clinical judgment. This approach echoes previous criticisms of AI in health care, where reliance on algorithms has been linked to detrimental health outcomes.
In Florida, lawmakers are also taking steps to regulate AI in health care. Proposed bills, such as SB 146 and SB 202, emphasize the need for qualified professionals to oversee decisions made by AI systems, particularly in the context of insurance claim denials. These legislative efforts reflect a growing recognition of the necessity to implement guardrails around AI technology to protect both patients and professionals.
As discussions around AI in health care continue, the need for a balanced approach is clear. Lawmakers must navigate the fine line between encouraging innovation and safeguarding patient welfare. The evolving landscape of AI technology will likely prompt further legislative scrutiny and action in the coming months, as states and federal entities work to establish robust frameworks for its responsible use in health care and mental health services.
With the increasing integration of AI into health care, the role of legislators in shaping a regulatory environment will be crucial. As states like Vermont and California lead the charge, their actions may set important precedents for the future of AI in health care across the United States.

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