STAT+: CMS signals intent to revamp how it pays for clinical software and AI

STAT PlusHealth tech CMS signals intent to revamp how it pays for clinical software and AI The agency proposes some changes in 2027 and hints at broader shifts ahead Manage alerts for this article Email this article Share this article By Katie PalmerJuly 16, 2026 Health Tech Correspondent Katie Palmer[email protected]Katie covers the impact of health technology on patients, clinicians, and businesses. Her stories explore the price tag of clinical AI, digital health at the FDA, and the boom in direct-to-consumer telehealth. Confidential tips can be sent on Signal at palmer.01. You’re reading Part 3 of Paying for AI, a series examining how new clinical artificial intelligence tools influence the affordability of health care and patients’ long-term health. Read Part 1 here, and Part 2 here. For years, Medicare has been wrestling with how to pay for artificial intelligence and other software-based clinical tools. The Centers for Medicare and Medicaid Services is good at calculating the costs of physical items, from a cotton swab to the wear and tear on a CT scanner. But an algorithm to predict cardiac risk from a CT scan, or an AI-based map to visualize prostate cancer’s spread? Less so.Advertisement This month, in its proposed rules for hospital outpatient payments and physician fees for 2027, CMS has signaled that it’s ready to build a more consistent payment structure for clinical software and AI that factors in their impact on patient outcomes. It’s starting — as an interim step, just for 2027 — by proposing a practical change to the way it labels and pays for several clinical software and AI services. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — and get additional analysis of the technologies disrupting health care — by subscribing to STAT+. Already have an account? Log in Monthly $39 Totals $468 per year $39/month Get Started Totals $468 per year Starter $30 for 3 months, then $399/year $30 for 3 months Get Started Then $399/year Annual $399 Save 15% $399/year Get Started Save 15% 11+ Users Custom Savings start at 25%! Request A Quote Request A Quote Savings start at 25%! 2-10 Users $300 Annually per user $300/year Get Started $300 Annually per user View All Plans To read the rest of this story subscribe to STAT+. Subscribe Log In Artificial intelligence, health tech, Policy, STAT Submit a correction requestReprints Katie Palmer Health Tech Correspondent Katie covers the impact of health technology on patients, clinicians, and businesses. Her stories explore the price tag of clinical AI, digital health at the FDA, and the boom in direct-to-consumer telehealth. Confidential tips can be sent on Signal at palmer.01. Newsletter Tech is transforming health care and life sciences. Our original reporting is here to keep you ahead of the curve. Recommended First Opinion July 16, 2026 Medicaid and SNAP cuts are exacerbating the intertwined problems of hunger and mental illness First Opinion July 16, 2026 The growing fang-to-pharmacy pipeline Advertisement Politics July 15, 2026 Graham’s death from aortic dissection raises questions about preventing the rare disorder Politics July 15, 2026 STAT Plus: At key hearing, Kennedy’s ouster of former CDC director looms over nominee to replace her In the Lab July 15, 2026 STAT Plus: New study untangles how Epstein-Barr viral infection triggers immune response in multiple sclerosis Subscriber Picks