Health Affairs January 6, 2026
Abstract
The rapid growth of clinical artificial intelligence (AI) applications poses a unique challenge to Medicare’s prospective payment systems, with two issues at the forefront. First, the productivity gains from AI may dwarf those of previous non-AI innovations, but they are uncertain and will take time to realize. Second, AI forces the Centers for Medicare and Medicaid Services (CMS) to think very differently about software. For many clinical applications...







