This bill establishes a two-year pilot program under Medicare to test a predictive risk-scoring algorithm, beginning no later than January 1, 2026. The program aims to enhance oversight of payments for durable medical equipment and clinical diagnostic laboratory tests , focusing on transactions involving these specific items or services. Participation in this pilot program is voluntary for beneficiaries who opt-in to receive electronic Medicare Summary Notices and agree to participate. The Secretary will adopt a predictive risk-scoring algorithm that learns from beneficiary data to assign a risk score (from 1 to 99) to relevant transactions. Prior to implementation, this algorithm must undergo sufficient testing, evaluation, and review, taking into consideration executive orders related to artificial intelligence. For transactions identified as high-risk by the algorithm, a human review process will determine if payment suspension is necessary. Beneficiaries will be given the opportunity to cure a high-risk score or suspended transaction, or to confirm its validity, via email or phone. If a transaction is suspended, the beneficiary will receive automatic electronic alerts through Medicare Summary Notices, which will also include information on reporting suspected fraud. The Secretary will also collaborate with industry representatives, including durable medical equipment suppliers, on the program's development and implementation.
This bill establishes a two-year pilot program under Medicare to test a predictive risk-scoring algorithm, beginning no later than January 1, 2026. The program aims to enhance oversight of payments for durable medical equipment and clinical diagnostic laboratory tests , focusing on transactions involving these specific items or services. Participation in this pilot program is voluntary for beneficiaries who opt-in to receive electronic Medicare Summary Notices and agree to participate. The Secretary will adopt a predictive risk-scoring algorithm that learns from beneficiary data to assign a risk score (from 1 to 99) to relevant transactions. Prior to implementation, this algorithm must undergo sufficient testing, evaluation, and review, taking into consideration executive orders related to artificial intelligence. For transactions identified as high-risk by the algorithm, a human review process will determine if payment suspension is necessary. Beneficiaries will be given the opportunity to cure a high-risk score or suspended transaction, or to confirm its validity, via email or phone. If a transaction is suspended, the beneficiary will receive automatic electronic alerts through Medicare Summary Notices, which will also include information on reporting suspected fraud. The Secretary will also collaborate with industry representatives, including durable medical equipment suppliers, on the program's development and implementation.