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Medicare Launches AI Pilot to Cut Wasteful Spending

2/11/2026

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Story summary
  • Medicare has launched a six-year pilot program, the Wasteful and Inappropriate Service Reduction Model, for traditional Medicare beneficiaries in six states.
  • The program requires prior authorization for 14 procedures and uses artificial intelligence (AI) to identify unnecessary treatments.
  • Its aim is to reduce wasteful spending, though providers may face higher denial rates and more paperwork.
  • The pilot will be evaluated for effectiveness before any expansion.