Health Care

The United Nations released the International AI Safety Report 2026, a comprehensive assessment concluding that advanced artificial intelligence presents both transformative opportunities and escalating dangers. The report, led by the UN agency for digital technology, finds that AI can accelerate development in health, education, and financial services in developing nations while simultaneously enabling cyberattacks, deepfake fraud, non-consensual intimate imagery, and biological weapon design. The core finding: AI capabilities in critical fields like biological research are advancing faster than governance frameworks, creating a dangerous gap between what is technologically possible and what remains safe.

American Healthcare Systems Corp. and its founder Mike Sarian filed an amended complaint in California state court on Tuesday, July 7, 2026, accusing their former in-house counsel Faisal Gill of orchestrating an extortion and takeover scheme. The complaint also names Dr. Aramais Paronyan, a minority shareholder and director, as a participant in efforts to remove Sarian from control and restrict his access to company finances. AHS operates five Florida hospitals, including Palmetto General and Coral Gables Hospital.

Traci Tamiko Eto, former research director at Mayo Clinic, filed a federal lawsuit on July 6, 2026, alleging retaliation and wrongful termination after she raised concerns about AI safety failures and patient privacy violations. According to the complaint, Eto was demoted in July 2025, placed on involuntary medical leave, and fired in December 2025 when her position was eliminated in a reduction in force that reportedly affected only her role. The suit was filed in U.S. District Court for the District of Minnesota under the False Claims Act's retaliation provision, the Americans with Disabilities Act, and the Family and Medical Leave Act.

The FTC, joined by Utah and California, sued telehealth company Hims & Hers Health, Inc. on July 29, 2026, in U.S. District Court for the Northern District of California. The complaint alleges that Hims shared consumers' sensitive health information with third-party ad platforms including Meta and Snap despite privacy commitments, and that it charged customers for prescriptions immediately after intake forms were completed—before any provider consultation occurred. The agencies also claim Hims misled customers about billing, subscriptions, and cancellation procedures. The FTC alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA), while Utah and California assert violations of state consumer protection and false-advertising statutes.

California Attorney General Rob Bonta filed a Second Amended Complaint in the state's PFAS litigation, alleging that DuPont-related companies executed fraudulent asset transfers designed to shield themselves from environmental liability. The complaint targets E. I. du Pont de Nemours and Company, DuPont de Nemours, Inc., Corteva, Inc., The Chemours Company, and newly created Qnity Electronics. Bonta contends that corporate restructuring and amended agreements shifted the bulk of PFAS-related liabilities onto Chemours while reducing exposure for New DuPont, Corteva, and Qnity Electronics. The filing invokes the Uniform Fraudulent Transfer Act and the Uniform Voidable Transactions Act, and seeks relief in U.S. District Court for the District of South Carolina.

Seven states have now enacted laws restricting AI-powered therapy chatbots, with five new restrictions taking effect in 2026. Colorado, Maine, Rhode Island, Tennessee, and Vermont joined Illinois and Nevada in prohibiting or severely limiting how artificial intelligence can deliver mental health services. Colorado's law, effective June 3, bars AI therapy chatbots entirely and restricts how licensed professionals can deploy AI tools. Maine treats unauthorized AI therapy as an unfair trade practice. Rhode Island requires that all therapy services be delivered by licensed professionals and prohibits AI from making independent treatment decisions. Tennessee bars AI systems from advertising themselves as qualified mental health professionals. Vermont prohibits AI from independently delivering mental health services. Illinois and Nevada adopted similar restrictions in 2025.

On March 2026, more than 23,000 Kaiser Permanente nurses and approximately 2,400 mental health professionals in Northern California staged a coordinated six-hour strike across five facilities—Fresno, Oakland, Sacramento, Santa Clara, and Santa Rosa Medical Centers. The work stoppage, which ran from 8 a.m. to 2 p.m., was organized by the National Nurses United and the National Union of Healthcare Professionals to protest Kaiser's expanding use of artificial intelligence in patient care and clinical roles.

The Federal Trade Commission, joined by California and Utah, has sued telehealth company Hims & Hers Health, Inc. in U.S. District Court for the Northern District of California, alleging that the company shared sensitive health data with advertising platforms including Meta and Snap while marketing itself as private and discreet. The complaint also charges Hims with deceptive subscription practices, including charging customers immediately after intake forms were submitted—before any medical consultation occurred—and making cancellation unreasonably difficult. The FTC alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act, while California invokes its False Advertising and Unfair Competition Laws and Utah cites its Consumer Sales Practices Act.

The FTC, joined by Utah and California, filed a federal complaint in the U.S. District Court for the Northern District of California against Hims & Hers Health, Inc., alleging the telehealth company shared consumers' sensitive health information with third-party advertising platforms including Meta and Snap while publicly promising privacy protection. The complaint also charges that Hims & Hers misled users about billing and cancellation practices. According to the filing, the company disclosed health-related data and customer lists through tracking technologies embedded on its website, charged consumers for prescriptions immediately after intake forms were submitted—before any provider consultation occurred—and deliberately made subscriptions difficult to cancel. The FTC alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA), while Utah invokes the Utah Consumer Sales Practices Act and California cites its False Advertising and Unfair Competition laws.

The House Appropriations Committee voted unanimously Tuesday to strip funding for WISeR, a CMS pilot program that uses artificial intelligence to impose prior authorization requirements on traditional Medicare beneficiaries. The committee adopted an amendment to the FY 2027 HHS appropriations bill that prohibits the Centers for Medicare & Medicaid Services from spending federal dollars on WISeR or any similar prior authorization model targeting traditional Medicare. The vote represents the first formal legislative action against the program, which CMS launched last year as a six-year Innovation Model beginning January 1, 2026.

A U.S. bankruptcy judge has approved a $46.75 million settlement to compensate victims of 23andMe's 2023 data breach, resolving claims after the genetic testing firm exposed the genetic data of nearly 6.9 million people worldwide. U.S. Bankruptcy Judge Brian Walsh in St. Louis ordered Chrome Holding—the entity that acquired 23andMe following its bankruptcy filing—to disburse the funds through Kroll Restructuring within five days.

On July 1, 2026, the UN's Independent International Scientific Panel on Artificial Intelligence released a preliminary report warning that unregulated AI development is outpacing both scientific understanding and government policy, with no guarantee against catastrophic harm. Led by UN Secretary-General António Guterres and computer scientist Yoshua Bengio, the panel identified specific risks: loss of control over autonomous systems, deceptive AI behaviors, and exploitation for fraud, cyberattacks, and biological threats. The report notes that AI already demonstrates expert-level reasoning in mathematics and science, with task complexity doubling every four to seven months, while current models trained on only a fraction of the world's 7,000 languages produce dangerous errors in health diagnoses for many populations.

Patients are increasingly pasting lab results and medical test data into consumer AI chatbots like Claude and Gemini to interpret findings before or instead of consulting their physicians. The trend has prompted pushback from doctors, who warn that these tools frequently produce incorrect medical explanations and may inadvertently expose protected health information. The behavior shift reflects a broader adoption pattern: roughly one-third of U.S. adults now consult AI for health advice, creating real-time pressure on clinicians to correct AI-generated misreadings during patient encounters.

A federal judge in California has denied Meta Platforms' motion for summary judgment, clearing the way for a multistate lawsuit over youth mental health to proceed to trial in August 2026. The ruling, issued June 29 by the U.S. District Court for the Northern District of California, rejects Meta's attempt to have the case dismissed and confirms that the attorneys general's claims have sufficient legal merit to survive pretrial scrutiny.