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AII-1002-12947
ConfirmedA court, a regulator or the organization itself has stated the core facts, or the record cites a court or regulator source.

CMS to pilot AI-based prior authorization for Medicare claims

The Centers for Medicare and Medicaid Services announced a pilot program using artificial intelligence to assess whether Medicare claims are appropriate before authorization, expanding a process previously limited to Medicare Advantage plans. Critics raise concerns that AI companies have financial incentives to deny claims and that the system could inappropriately restrict patient access to necessary medical care.

29 August 2025 Β· Centers for Medicare and Medicaid Services Β· Governance, accountability and labour
29 August 2025
AII-1002-129472 sources ↓
Quick facts
Category
Governance, accountability and labour
Country
United States
Source
The Times of India
Date
29 August 2025
Drafted by
Raidu Incident Detection

What happened

The Centers for Medicare and Medicaid Services (CMS) announced a pilot program called the Wasteful and Inappropriate Service Reduction (WISeR) Model, scheduled to begin in six states in 2026, using artificial intelligence algorithms to assess the appropriateness of certain medical services for Original Medicare recipients.

The AI program will apply prior authorization to Original Medicare recipients, a process previously common only for Medicare Advantage beneficiaries. According to reports, the AI algorithms will be used to determine whether care recipients are receiving appropriate services and to reduce wasteful or inappropriate care.

Reported impact

Critics have warned that AI companies involved in prior authorization have financial incentives to deny claims, and similar AI-based algorithms have faced litigation.

The program has been described as potentially problematic for patient care, with concerns that AI systems could deny necessary medical services.

Index analysis

The CMS program represents an expansion of prior authorization requirements to Original Medicare, which has traditionally not required such approval processes, potentially changing access to care for millions of beneficiaries.

Governance controls

The CMS program is described as a pilot test aimed at improving and expediting prior authorization processes while safeguarding federal taxpayer dollars. The extent of oversight mechanisms or appeals processes for AI-based denials is not detailed in the available sources.

Classification

Category
Governance, accountability and labour
Industry
Government, security and defence
Country
United States
Harm status
Potential harm
Intent
Unintentional
Timing
Unknown
Harm types
Economic or property
Harmed
Consumers, General public
AI systems
Wasteful and Inappropriate Service Reduction (WISeR) Model

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

The Times of India
US health insurance agency to use AI for authorising patient claims; how this may be a problem - The Times of India
31 August 2025
Gizmodo
Trump's New Plan for Medicare: Let AI Decide Whether You Should Be Covered or Not
30 August 2025