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September 29, 2025

Trump Administration Launches AI-Driven Pilot To Curb Medicare Costs

KFF Health News
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Contributed by: Kate Gamble
Summary
The Trump administration is launching a pilot program using artificial intelligence (AI) to assess prior authorization for certain Medicare treatments, aiming to curb wasteful spending in the program. Set to begin in January 2021 and run until 2031, this initiative will start in six states and focuses on procedures susceptible to fraud without affecting emergency or high-risk services. Although the government emphasizes that all decisions will undergo human review, there are concerns from healthcare professionals about AI potentially leading to further delays and denials, which could negatively impact patient care. This program reflects a significant shift in Medicare's approach to cost management, drawing parallels to private insurers that often rely on prior authorization processes.

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