December 2025 — Medicare is preparing to introduce artificial intelligence–driven prior authorization reviews for certain medical services beginning in January, marking a significant shift in how care approvals are handled within the federal health program.
Under the new policy, AI-supported pre-treatment reviews will be applied to a limited set of 17 procedures and services across select U.S. states. The initiative is designed to identify and reduce unnecessary care, improve program efficiency, and manage rising healthcare costs. However, the move has raised concerns among physicians and healthcare providers who worry about delays, denials, and reduced clinical autonomy.
Historically, Medicare has required far less prior authorization compared to private insurers, allowing physicians greater discretion in determining appropriate care for patients. The introduction of AI-based reviews represents a notable departure from this approach and signals a broader trend toward technology-driven oversight in public healthcare programs.
Doctors and medical groups have expressed unease about how AI systems will be used in practice, including questions around transparency, accuracy, and the potential for algorithms to override clinical judgment. Providers are also concerned that even a limited rollout could expand over time, increasing administrative burden and affecting patient access to timely treatment.
Supporters of the change argue that targeted prior authorization could help curb waste, ensure evidence-based care, and protect Medicare’s long-term sustainability. Federal officials emphasize that the program will initially apply only to a narrow group of services and regions, allowing for evaluation before any broader implementation.
As Medicare moves forward with this policy, healthcare stakeholders will be closely watching how AI-driven authorization affects patient outcomes, provider workflows, and trust in the system. The rollout is expected to play an important role in shaping future discussions about the balance between cost control, innovation, and clinical independence in U.S. healthcare.
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