Florida Advances AI Use Limits Amid Affordable Care Act Subsidy Debate

Florida Governor Ron DeSantis is advocating for the state legislature to advance policies regulating the use of artificial intelligence (AI), despite a recent federal executive order designed to limit state-level AI regulations. DeSantis emphasized the state's authority to implement AI policies and outlined key proposals including prohibiting AI companies from selling personal identifying information, banning AI as the sole factor in insurance claim decisions, and restricting AI chatbots from serving as licensed mental health counselors. These initiatives highlight growing regulatory considerations for AI in sectors such as healthcare and insurance. However, federal challenges may arise as the executive order requires the U.S. Attorney General to contest state laws conflicting with federal AI directives, potentially involving Florida's Attorney General in legal disputes over these regulations. Concurrently, the future of Affordable Care Act (ACA) subsidies is under scrutiny in Washington, with Florida poised to be significantly impacted if subsidies expire. Florida has approximately 4.7 million ACA enrollees who could face premium increases of up to 75%, threatening health coverage affordability and access. State efforts to address these challenges have been limited, with no Medicaid expansion or state subsidy plans actively pursued. Legislative focus has shifted towards long-term healthcare reforms aimed at spurring private market growth by reducing drug costs and adjusting social safety net eligibility requirements. Bills such as House Bill 695 and House Bill 693 reflect this approach, balancing deregulation with tightened program eligibility. These developments underscore critical intersections of AI regulation, healthcare policy, insurance market dynamics, and state-federal relations in Florida.