American Action Forum's policy analysis warns that state AI healthcare restrictions risk creating difficult-to-navigate regulatory patchworks that could stifle beneficial AI applications for patient care. The assessment details federal activity including Congressional hearings and class action lawsuits against Cigna and UnitedHealth over algorithmic claim denials, while tracking state legislation in Georgia, Illinois, Maine, and Massachusetts. This policy research perspective emphasizes the tension between protecting patient health and privacy versus enabling AI innovation, demonstrating how fragmented state approaches may inadvertently prevent adoption of promising healthcare technologies that could improve patient outcomes.