CO HB1139

Requires health insurance carriers, pharmacy benefit managers, and managed care entities using AI for utilization review to base coverage determinations on individual patient medical history and clinical circumstances, not solely on group data, with denials or delays reviewed by a licensed clinician or physician

Defines "mental health companion chatbot" as an AI system using generative AI to provide personalized, emotionally resonant responses that a reasonable person would believe capable of providing mental health therapy or treating mental health conditions

Prohibits AI systems from engaging in unauthorized practice of psychotherapy, including representing themselves as human mental health providers, using protected professional titles, or delivering psychotherapy services without oversight by a licensed professional

Requires mental health companion chatbots to clearly disclose they are not human and not licensed to provide therapy, implement suicide/self-harm crisis protocols with hotline referrals, and prohibits them from selling or sharing identifiable mental health data

Prohibits health insurance carriers and Medicaid/CHIP from paying for psychotherapy services provided directly to an individual by an AI system; takes effect January 1, 2027