Health Law Advisor

In the wake of a lawsuit filed in federal district court in California in August—alleging that an artificial intelligence (AI) chatbot encouraged a 16-year-old boy to commit suicide—a similar suit filed in September is now claiming that an AI chatbot is responsible for death of a 13-year-old girl.

It’s the latest development illustrating a growing tension between AI’s promise to improve access to mental health support and the alleged perils of unhealthy reliance on AI chatbots by vulnerable individuals. This tension is evident in recent reports that some users, particularly minors, are becoming addicted to AI chatbots, causing them to sever ties with supportive adults, lose touch with reality and, in the worst cases, engage in self-harm or harm to others.

While not yet reflected in diagnostic manuals, experts are recognizing the phenomenon of “AI psychosis”—distorted thoughts or delusional beliefs triggered by interactions with AI chatbots. According to Psychology Today, the term describes cases in which AI models have amplified, validated, or even co-created psychotic symptoms with individuals. Evidence indicates that AI psychosis can develop in people with or without a preexisting mental health issue, although the former is more common.

On June 11, 2024, U.S. Senators Ed Markey and Elizabeth Warren from Massachusetts, introduced proposed legislation titled The Corporate Crimes Against Health Care Act (“CCAHCA”), aimed at addressing a perceived “looting” of health care systems by for profit private equity investors. According to Sen. Warren, the bill was introduced to “root out corporate greed and private equity abuse in the health care system,” “prevent exploitative private equity practices,” and to specifically ensure that actions such as “looting” do not happen again by addressing trigger events and targeting real estate investment trusts.

The CCAHCA proposes to impose significant criminal penalties, compensation clawbacks, and civil penalties against executives of private equity firms and health care entities that are found to have contributed to the death or injury of a patient through a triggering event. Additionally, the bill imposes certain requirements that impact real estate investments funds (REITs) and would require annual reporting requirements for change of control transactions.

Federal lawmakers are debating legislation to address surprise medical bills that, if passed in its current form, would significantly impact how hospitals, physicians and insurers negotiate payment for the provision of certain out-of-network services. A bipartisan coalition led by Senator Lamar Alexander (R-Tennessee), Chairman of the Senate Health, Education, Labor and Pension Committee, and Senator Patty Murray (D-Washington) aims to present to the President for signature a bill to curb surprise billing practices by the end of the year.

Instances of surprise medical ...