North Dakota Governor Kelly Armstrong Signs Landmark Bill to Regulate AI in Healthcare: What You Need to Know

BISMARCK — A new law in North Dakota aims to reduce the wait time for patients needing treatments and medications by limiting the power of artificial intelligence and insurance algorithms in healthcare decisions. Governor Kelly Armstrong recently signed Senate Bill 2280, which focuses on reforming the “prior authorization” process for medical services like imaging, medications, and surgeries.

Prior authorization is a process where health insurance plans require approval for certain treatments or prescriptions before they cover the costs. While this system can be necessary, it often leads to delays in care, as decisions can take too long. The new law changes that by imposing strict deadlines on insurers for decision-making. In urgent cases, patients can expect a response within 72 hours, and within seven days for non-urgent requests.

Sen. Scott Meyer, the bill’s sponsor, expressed the importance of collaboration in passing this law. He recognized the consensus among lawmakers that prioritized patient care. Dr. Stefanie Gefroh, president of Essentia Health’s West Market, noted that North Dakota was one of the few states without any oversight on prior authorization timelines, creating potential for significant delays. She mentioned that some doctors spend up to 14 hours each week justifying medical decisions, which could otherwise be directed toward patient care.

Statistics from the American Medical Association highlight the pressing need for this change. In 2022, over 83% of denied prior authorization requests in Medicare Advantage plans were overturned upon appeal. This means many patients faced unnecessary delays, particularly for critical services like MRIs and chemotherapy treatments. The new law mandates that insurance company denials be made by licensed physicians rather than AI systems or non-experts, ensuring a human touch in these crucial decisions.

The law has faced some opposition from insurance companies that claim it will raise costs. However, it received strong backing from various healthcare organizations, including the North Dakota Hospital Association and a coalition supporting diverse patient needs. This support emphasizes a shared commitment to prioritizing patients in healthcare decisions.

With this new law taking effect on January 1, 2026, North Dakota is stepping up to improve patient experiences, making timely access to medical care a priority. As healthcare continues to evolve with technology, balancing efficiency with human oversight is more important than ever.

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