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CMS to Test AI-Screened Prior Authorization in Traditional Medicare Across Six States

Officials say the pilot targets costly, low‑value treatments to curb fraud.

Overview

  • The multi‑year demonstration is scheduled to begin in January for beneficiaries in Arizona, New Jersey, Ohio, Oklahoma, Texas, and Washington.
  • Private contractors will use artificial intelligence to screen requests, with any denials issued by licensed clinicians, and emergency services and hospital stays excluded.
  • Roughly a dozen procedures are in scope, including certain spine surgeries, select steroid injections, electrical nerve stimulators, skin and tissue substitutes, incontinence devices, and impotence treatments.
  • Selected vendors are slated to receive a share of savings from rejected claims, and officials say companies could face penalties for inappropriate decisions.
  • Democratic lawmakers, the American Medical Association, physicians, and patients warn of red tape and delayed care, while CMS projects several billions in savings from reduced waste.