Holland & Knight's regulatory analysis tracks federal and state efforts to regulate AI deployment in healthcare utilization management and prior authorization processes, with CMS clarifying that Medicare Advantage plans cannot rely solely on AI for medical necessity determinations. The assessment details Colorado's Consumer Protections Act and various state healthcare AI bills while emphasizing that AI can assist coverage decisions but requires human oversight and clinical judgment. This specialized healthcare law analysis provides crucial compliance guidance for managed care plans and utilization management organizations navigating the evolving regulatory landscape around AI in healthcare coverage decisions.