CMS is rapidly reshaping the federal health technology landscape, rolling out a series of initiatives over the past three months that touch nearly every stage of digital healthcare, from how AI tools are paid for and how prior authorizations are processed to how Medicare technology is governed and remote patient monitoring is delivered.
Here are four of the agency’s biggest moves since May:
- A prior authorization push: CMS said May 13 that 30 organizations, including Cleveland Clinic, Providence (Renton, Wash.), Ochsner Health (New Orleans), Epic and Oracle, joined its Electronic Prior Authorization Acceleration initiative as early adopters ahead of a Jan. 1, 2027, deadline requiring payers to support electronic prior authorization through Fast Healthcare Interoperability Resources (FHIR)-based APIs.
- A dedicated tech office: HHS Secretary Robert F. Kennedy Jr. approved CMS’ new Office of Health Technology and Products June 9, effective the same day. The office will oversee digital product strategy for Medicare, Medicaid and CHIP, direct modernization of systems including the National Provider Directory and Medicare claims processing, and advise CMS leadership on AI governance.
- A new AI payment category: CMS proposed July 2 creating “Software as a Medical Service,” a Medicare payment pathway for algorithm-driven diagnostic tools such as AI-based retina imaging and echocardiogram analysis. The agency would assign status indicator O1 to 36 procedure codes and move 21 into New Technology payment groups.
- A remote monitoring crackdown: CMS proposed July 14, as part of the 2027 physician fee schedule, banning Medicare payment for remote patient monitoring delivered by third-party vendors. The agency cited HHS Office of Inspector General (OIG) findings that 43% of enrollees missed required service components and that RPM payments jumped 31% from 2023 to 2024.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.