The Advanced Medical Technology Association (AdvaMed) and 22 other organizations have endorsed the Health Tech Investment Act (S 1399).
If enacted, the bipartisan bill will establish a stable payment pathway for algorithm-based healthcare services delivered through devices that use AI, machine learning, or other similarly designed software and that have been cleared or approved by the U.S. Food and Drug Administration (FDA).
In a June 10 letter, proponents emphasized that AI adoption faces significant barriers due to inconsistent reimbursement through the U.S. Centers for Medicare and Medicaid Services.
"The absence of payment predictability creates challenges for physicians seeking to integrate these advanced tools into their practices and thus prevents many patients, particularly those relying on Medicare, from accessing the benefits of AI-enabled medical devices," the authors wrote.
The Health Tech Investment Act, introduced April 9, seeks to amend title XVIII of the Social Security Act and assign algorithm-based healthcare services to a new technology ambulatory payment classification (APC) in the Hospital Outpatient Prospective Payment System (OPPS) for a minimum of five years, according to details.
S 1399 regards an algorithm-based healthcare service as one that yields clinical outputs or generates clinical conclusions for use by a physician or practitioner in the screening, detection, diagnosis, or treatment of an individual’s condition or disease.
Passage would also allow for the collection of adequate data about delivery and service costs prior to the establishment of a permanent payment code.
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