ST. Paul — Artificial intelligence has received a lot of attention recently, both for its increasing capabilities and the risk of misuse. That downfall dominated the conversation at a House Commerce, Finance and Policy Committee hearing on Wednesday, February 19th.
Rep. Alex Falconer, DFL Minnetonka, led the debate on HF 2500, a bill that would ban the use of AI and algorithms in reviewing health insurance preauthorization applications. He cited a 2025 lawsuit against UnitedHealth Group for using AI to “inflate profits by $22 million and implement a system that systematically denies physician-ordered treatment.”
Falconer said the denial of prior authorization requests by artificial intelligence is further exacerbating systemic stigma, reducing patient trust and relationships with health care providers, and harming the physical health of patients whose treatment is denied or delayed.
“Healthcare is more than just a business. It’s a deeply human endeavor,” he said.
Contribution / Minnesota State Legislature
As a coach at a school in his district, Falconer experienced the horror firsthand when one of his high school players, who has diabetes, struggled in practice.
“She was pale and disoriented and clearly needed to stop. She explained that her insulin pump normally regulates her blood sugar levels and allows her to attend and participate almost normally,” Falconer said. “However, her insurance company refused to pay for her timely monthly replenishment.”
“But like most other high school athletes I know, she decided, ‘Let’s just disembowel and see what happens,’ and learned painfully after a hospital visit that that wasn’t the best idea. But of course, none of these shortcomings should be laid at a child’s feet,” he said.
Plaintiffs in the lawsuit against UnitedHealth Group claimed that the company’s AI tools had a 90% error rate, a claim that UnitedHealth Group’s lawyers deny.
Most of those testifying Thursday supported the bill’s general proposal, but some expressed concerns about the risk of limiting the beneficial uses of AI.
Ann Noy Brindley, president of the Minnesota Business Partnership, said she is concerned that the bill’s language does not define the use of AI and algorithms clearly enough. She fears it will hinder the use of AI that “could improve health outcomes and reduce costs.”
“We also remain focused on ensuring that policies protect patients while enabling access, affordability, and innovation that supports better health outcomes,” Brindley said.
Rep. Andy Smith (DFL-Rochester), a co-author of the bill, ended the meeting by voicing the concerns of health care workers in Rochester, home of the Mayo Clinic. For example, he said a resident told him he noticed a pattern in which patients over 85 were consistently denied glaucoma medications.
The AI program was automatically denying medication to this population based on historical data, without further consideration or consultation with medical professionals, Smith explained.
“I know a lot of my constituents who are medical residents are going to be very excited to hear that something like this is going to pass Congress,” he said.
Prohibition of access to nudity technology
Rep. Jessica Hanson (DFL Burnsville) continued the conversation about the risks of AI while providing an overview of bill HF 1606. HF 1606 would prohibit websites and platforms from providing access to AI-generated “nudification” technology, prohibit the promotion of these platforms, and create civil penalties for the use of this technology in Minnesota.
Contribution / Minnesota State Legislature
“The nudity and face-swapping features allow users to create unauthorized deepfake pornography and other sexually explicit content, including, among other things, child sexual abuse material, also known as CSAM,” Hanson explained. “After uploading a non-explicit image of any person to the platform at any time by simply clicking on the ‘nude’ feature embedded in the platform, this feature allows anyone to generate images that depict that person as nude or in other sexual positions or manners.”
Several survivors spoke of the deep impact exploitation had on their lives and careers.
Molly Kelly, of Otsego, expressed concern for the safety of her children and other children. She removed nearly all photos of her children from her social media pages after discovering that AI-generated nudity technology was being exploited online.
“But personal choice is an illusion,” she said. “You can delete your own apps or monitor your kids, but you can’t delete your phone in someone else’s hands.”
Screenshot / Minnesota State Legislature
Kelly said this exploitation creates systemic barriers for women and children, who are forced to deal with “the aftermath of intimate acts that never happened.”
“Allowing apps to hide behind lazy claims of the First Amendment is a moral capitulation,” she added.
Mr Hanson referred to a 2023 report by the Internet Watch Foundation, a British organization that aims to prevent and eliminate images of child sexual abuse on the internet.
This report highlights how rapidly AI technology advanced between February 2022 and May 2023, and how it has continued to advance since then.
Hanson said that as technology advances, it will only become more possible for pedophiles and predators to misuse it to cause harm.
“Guys, we’re already arriving at this job too late, so we can’t afford to wait any longer,” she said.
