Colorado House committee advances bills regulating AI in therapy, insurance decisions - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
March 7, 2026 Newswires
Share
Share
Post
Email

Colorado House committee advances bills regulating AI in therapy, insurance decisions

Marissa VentrelliColoradopolitics.com

Colorado lawmakers are moving to place guardrails on the growing use of artificial intelligence in mental health care and insurance decisions.

The House Health and Human Services Committee on Thursday approved two bills that would limit how therapists and insurers use AI — requiring clinician oversight when AI is used in therapy and preventing insurance companies from relying solely on algorithms to deny coverage.

House Bill 1195, sponsored by Reps. Gretchen Rydin, D-Littleton, and Javier Mabrey, D-Denver, and Sens. Judy Amabile, D-Boulder, and Kyle Mullica, D-Thornton, prohibit therapists and social workers from using artificial intelligence to give recommendations or treatment plans to clients without clinician review. The bill also requires therapists to have clients' consent before using artificial intelligence to record or transcribe sessions, and prohibits individuals from offering psychotherapy services unless they are a regulated professional.

According to Mabrey, one in eight patients between 12 and 21 years old has said they use AI chatbots for mental health advice, and one-third of adults say they'd be comfortable consulting with a chatbot about their mental health rather than a therapist.

Chatbots are designed to please users and keep them engaged, Mabrey said, which can be particularly concerning in mental health crises.

"They mirror emotional tone rather than challenge it," he said.

An MIT/OpenAI study found that increased chatbot use was associated with higher levels of loneliness and reduced social interaction.

"That's not surprising when we remember how these systems are designed," Mabrey said.

Rydin, who is a licensed clinical social worker and therapist, said her profession is regulated for a reason.

While she acknowledged that there are "perfectly appropriate" places for AI in therapy, chatbots will never be able to replicate the relationship between a therapist and their client.

"Psychotherapy is not simply the delivery of information; it is a deeply emotional process," said Carolyn Riegel, a social work student representing the Colorado Counseling Association. "Effective treatment requires a trained professional who can recognize the subtle shifts in a client's tone, hold space for silence, attune to what is left unsaid, and make real-time clinical judgements grounded in years of education, supervised experience, and licensure. These are not tasks that can be replicated by an algorithm."

Therapists are required to undergo intensive training, supervised clinical hours, and exams before being allowed to practice, Riegel said, while AI is not subject to any of those requirements.

"When a client is at their most vulnerable, they deserve the judgment and presence of a qualified human professional, not an automated response," she said.

Dr. Amanda Marsh Baranski, a social worker and professor at Metropolitan State University Denver, said AI systems are increasingly being marketed to the public as substitutes for therapy.

"Therapy is not simply the exchange of information; it is a professional relationship built on trust, safety, and connection," Baranski said. Therapists can pick up on clients' body language, tone, pauses, and emotional shifts, something AI cannot do.

She added, "Those moments guide our clinical judgement and help shape how we respond," she said. "That relational process – the rapport between clinician and client – is often what allows healing to occur."

The bill passed through the committee unanimously.

Insurance companies using AI

A second bill, House Bill 1139, prohibits health care insurance companies from basing coverage decisions solely on group data collected by AI systems. The bill also requires insurance companies' AI systems to consider a patient's medical or clinical history, along with other important factors, in coverage decisions.

In addition, the bill establishes regulations for AI systems used in psychotherapy, including prohibiting implying or stating that a system is a human mental health provider or is authorized to practice psychotherapy, and requiring chatbots to implement protocols to address a client's suicidal ideation or self-harm, such as referring the individual to a crisis hotline.

According to bill sponsor Rep. Junie Joseph, D-Boulder, insurance companies spend just over a second per case in instances of "bulk denials," in which they use AI algorithms to reject large numbers of claims without human review.

"When decisions happen in just over a single second, we can reasonably question whether a human actually evaluated the patient's situation," Joseph said. "Technology can support the process, but it does not replace the obligation for compliance and accountable decision-making," Joseph said.

The bill does not prohibit the use of AI; it sets expectations for transparency and human oversight, Joseph said.

Advancements in technology have "both simplified and complicated all of our lives," said Blair Skinner, a marriage and family therapist and president of the Mental Health Advocacy Network of Colorado.

"As technology continues to advance, it's imperative that we put guardrails on these tools, focusing on their use as aids in care, not as replacements for human ability to make nuanced decisions," she said.

The goal of the bill is simple, Skinner said.

"AI should not be allowed to deny treatment coverage that's so desperately needed without a trained clinician involved."

The bill passed on an 8-5 party-line vote, with Democrats voting in favor and Republicans in opposition. It is cosponsored by Rep. Sheila Lieder, D-Littleton.

The post Colorado House committee advances bills regulating AI in therapy, insurance decisions appeared first on Colorado Politics.

Older

DEPARTMENT OF INSURANCE, CONSUMER WATCHDOG AND STATE FARM REACH SETTLEMENT AGREEMENT ON STATE FARM'S PRIOR EMERGENCY INTERIM RATE REQUEST

Newer

GOP reps aim to eliminate concealed pistol permits

Advisor News

  • The overlooked retirement security risk that must be addressed
  • What advisors should know about hedge funds in retirement planning
  • Retirement control is top success measure for middle class, ACLI says
  • Industry groups applaud House passage of Financial Exploitation Prevention Act
  • Younger workers more likely to be eligible for a retirement plan after changing jobs
More Advisor News

Annuity News

  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
  • What’s fueling record annuity growth?
  • Jackson Named InvestmentNews 2026 Annuities Provider of the Year
  • State Farm’s agency overhaul: What distribution can learn
  • IRI, ACLI express support for CLEAR Forms Act
More Annuity News

Health/Employee Benefits News

  • Nation's first state-run long-term care insurance program launches in WA
  • Nation's first state-run long-term care insurance program about to launch in WA
  • Affordable healthcare emerges as a voter priority in purple Nevada
  • 16,000 new moms to benefit from expanded Medicaid coverage starting Wednesday
  • Illinois Medicaid patients can wait more than a year for critical dental care due to low reimbursements
More Health/Employee Benefits News

Life Insurance News

  • NAIFA praises House committee approval of Clarity for Compensation Act
  • PHL Variable liquidation pushed out to 2027, Connecticut regulators say
  • ‘Recession-Proof’ Insurance Is Trending. Safety Net or Scam?
  • Winged Keel Group Expands National Presence and PPLI Leadership, Welcomes SBSI, Inc. (dba NFP Insurance Solutions)
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

A MYGA for Clients Hesitant to Commit to One Long-Term Rate
First-year certainty. Annual rate updates. Get the CurrentRate® MYGA Sales Kit.

Elite Networking & Insights Await at the Event of the Year
The industry's premier conference for leaders driving what’s next in financial services.

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet