Apparently that is the case already. HN title has been changed to

Human judgment[!] must remain central to health insurance claims: California law

Top comment explains:

The headline is misleading. The bill allows AI and algorithms to be used, as long as it doesn't supplant a licensed medical professional deciding (K.1.D), or violate civil rights along with a few other things, but it's not outright prohibited as the headline could be interpreted.

Section K.1 of SB 1120

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm...

(old title was some thing like New California law prohibits using AI as basis to deny health insurance claims)