Medicare Policy Recommentation Favors Bundled Payment for Software Technology, Including AI
Summary
The Medicare Payment Advisory Commission (MedPAC) is a nonpartisan independent legislative branch agency that provides the U.S. Congress with analysis and policy recommendations. In its latest report to Congress, MedPAC reviews how Medicare currently pays for software technologies and explains why it favors bundled payment for software technology. Currently, Medicare pays for some software technology through separate payment, and some through bundled payment. Although MedPAC did not directly address payment for software that utilizes AI, this policy approach would also apply to such technologies. The Commission reports that paying separately for software and services separately could lead to duplicative purchases, while payment bundles incentivize providers to use cost-effective software while allowing for some degree of flexibility.
