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How Should Medicare Pay For Artificial Intelligence?

How Should Medicare Pay For Artificial Intelligence?
This Viewpoint examines artificial intelligence–enabled clinical services, existing payment structures, and the economics of artificial intelligence pricing.

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Artificial intelligence (AI) is making waves in the healthcare system, particularly with the rapid introduction of AI-enabled clinical services. These services, which integrate AI at the point of care, are helping clinicians provide diagnoses, treatment, and patient triage. The US Food and Drug Administration has already approved over 500 of these services, and payers are starting to reimburse clinicians for their use. However, the current fee-for-service payment system may not be the best fit for these services, leading to concerns about their potential overuse and impact on spending. Payers are now faced with the challenge of balancing the desire for innovation and the diffusion of high-value AI-enabled clinical services with these concerns.