Bipartisan legislation introduced in the House on Thursday, Nov. 20, would designate a new temporary payment code for artificial intelligence (AI)-enabled medical devices to ensure small and rural hospitals’ access to new technology.
The Health Tech Investment Act was introduced by Reps. John Joyce, R-Penn., Scott Peters, D-Calif., Beth Van Duyne, R-Texas, Brad Schneider, D-Ill., Jay Obernolte, R-Calif., and Angie Craig, D-Minn.
The bill would require that all Food and Drug Administration (FDA) approved AI devices be assigned to a New Technology Ambulatory Payment Classification (APC) in the system used by Medicare to reimburse hospitals for outpatient services, for a minimum of five years.
By doing so, the representatives said it would “ensure that necessary data surrounding delivery and service costs is acquired before a permanent payment code is assigned.”
“Innovation is the bedrock of American healthcare, and I have always worked to ensure that all patients receive access to innovative medicines and devices,” Joyce said in a statement.
Joyce, a dermatologist, added that the bill “will ensure that American patients, regardless of rural or urban care settings, can access new, innovative AI-enabled medical devices that are revolutionizing healthcare.”
The Health Technology Investment Act also opens access to Medicare beneficiaries who can get easier access to AI devices, Peters added.
“AI-enabled medical technologies already help doctors diagnose disease earlier and treat patients more effectively. Still, too many patients lack access,” Peters said.
The bill introduced to the House is a companion to legislation introduced to the Senate in the spring by Sens. Mike Rounds, R-S.D., Martin Heinrich, D-N.M., and Marsha Blackburn, R-Tenn.
According to Rounds’ office, the FDA currently has over 600 AI-enabled medical devices, but the Center for Medicare & Medicaid Services lacks standard and consistent methods for covering and paying for those devices.
With consistent practices, the bill could help open access to treatments for patients who would benefit from AI devices, the Advanced Medical Technology Association (AdvaMed) said in a statement.
“From interpreting medical images efficiently and effectively to detecting diseases earlier, AI has the power to significantly reshape and enhance patient care,” AdvaMed said. “By establishing a pathway to long-term, stable reimbursement for a subset of some of the most innovative AI-enabled medical devices … the Health Tech Investment Act can help to improve access to enhanced diagnostic accuracy and better patient outcomes and drive more cost efficiencies across the health care system.”