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HR6197FEDERALin_committee

Health Tech Investment Act

November 20, 2025

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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently in_committee. The next step in the legislative lifecycle is Floor Vote.

Last action
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.Nov 20, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

The Frame

What this does

This bill changes how Medicare calculates payments for AI-based medical services starting January 1, 2026, which will impact how hospitals are reimbursed for using these technologies.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Healthcare Technology Manufacturers

They are required to submit detailed cost data, including subscription and invoice prices, to the Secretary to determine Medicare payment classifications.

Hospitals and Outpatient Departments

They will be subject to updated Medicare reimbursement policies for AI-based services provided to patients.

Medicare Beneficiaries

They are the recipients of the healthcare services whose payment structures are being modified by this legislation.

What changed

Current stage: in_committee.

What's next

Floor Vote.

Summary

This bill updates how Medicare pays for healthcare services that use artificial intelligence and machine learning software. It establishes new rules for how these services are classified and reimbursed to ensure costs like software subscriptions and clinical overhead are accurately accounted for.

Key Facts

  • The bill mandates that algorithm-based healthcare services be assigned to a 'new technology ambulatory payment classification' based on costs submitted by the manufacturer, including invoice prices, subscription fees, and clinical overhead.
  • Services assigned to this classification cannot be removed until the Secretary of Health and Human Services determines adequate claims data exists, with a minimum duration of 5 years.
  • The bill defines 'algorithm-based healthcare service' as a service using FDA-cleared AI or machine learning software to assist in screening, detection, diagnosis, or treatment.
  • The Secretary is required to adjust the application process to include services that are performed concurrently with or adjunctive to other procedures.
  • The bill codifies a specific payment policy for 'software as a service' (SaaS) effective retroactively to January 1, 2023, based on a 2022 federal rule.
  • The new payment rules for algorithm-based services take effect on January 1, 2026.

Frequently Asked Questions

What counts as an 'algorithm-based healthcare service' under this bill?
It is a service delivered through an FDA-cleared device that uses AI, machine learning, or similar software to help a doctor screen, detect, diagnose, or treat a patient's condition.
How will Medicare determine the payment amount for these services?
Payments will be based on cost data submitted by the manufacturer, which must include subscription prices, invoice costs, and clinical staff/overhead expenses.
When do these changes take effect?
The new payment rules for algorithm-based services begin on January 1, 2026, while the policy for 'software as a service' is effective retroactively to January 1, 2023.

Why It Matters

This bill changes how Medicare calculates payments for AI-based medical services starting January 1, 2026, which will impact how hospitals are reimbursed for using these technologies.

News Coverage

Lobbying Activity

AARP

$4,110,000

2026

HEALTH ISSUESMEDICARE/MEDICAIDLAW ENFORCEMENT/CRIME/CRIMINAL JUSTICEPHARMACY

P.L. 119-21, One Big Beautiful Bill Act H.R. 8867, Planning for Long-term Aging Needs (PLAN) Act H.R. 5861, Legacy Act of 2025 H.R. 9393, the Lower Costs, More Transparency Act. H.R. 9396, the Prior Authorization Accountability Act. S. 4916, the Aging with Artificial Intelligence Act. H.R. 8100, Safe Staffing Saves Lives Act. S. 3886, Nurses Belong in Nursing Homes Act. H.R. 6766/S. 3492, the Essential Caregivers Act of 2025. H.R. 7966/S. 4118, Hospice Care Accountability, Reform, and Enforcement (Hospice CARE) Act. S. 2120, the Older Americans Act Reauthorization Act of 2025 H.R. 5575, the Firefighters Assisting Seniors to Emergency Response (FASTER) Act of 2025. H.R. 3954/S. 4641, Improving Access to Medicare Coverage Act. H.R.5554/S.2831, Stand Strong for Medicare Act. S. 3439/H.R. 6735, Connecting Caregivers to Medicare Act and efforts related to the bill S. 1227/H.R. 2491, Alleviating Barriers for Caregivers Act S. 668/H.R. 3183, Supporting Access to Falls Education and Prevention and Strengthening Training Efforts and Promoting Safety Initiatives (SAFE STEPS) for Veterans Act of 2025 CMS-1851-P, Hospice Proposed rule. CMS-1843-P, Skilled Nursing Facility Proposed rule. CMS-1844-P, Home Health Proposed rule. No bill number. Health care transparency. No bill number. Discussed use of artificial intelligence and health data technology. No bill number. Discussed health-related policies and activities around the fall respiratory virus season. No bill number. Discussed health insurance affordability proposals. No bill number. Discussed Nursing Home staffing standards, safety, and quality. No bill number. Discussed Nursing home transparency and ownership requirements. No bill number. Discussed home health, hospice, and long-term care. No bill number. Discussed falls prevention. No bill number. Discussed social isolation. No bill number. Discussed HUD Assisted Living Requirements No bill number. Discussed family caregiving. No bill number. Discussed AARP paper on Medicare Caregiver Training Services. No bill number. Discussed Medicaid community engagement interim final rule, including the family caregiver exemption. No bill number. Discussed the paid direct care workforce in long-term care. No bill number. Discussed the unaffordability of long-term care. No bill number. Discussed Money Follows the Person Rebalancing Demonstration Program and Medicaid HCBS spousal impoverishment protections. No bill number. Discussed Medicaid fraud and family caregivers, Medicaid self-direction programs. No bill number. Discussed sandwich generation family caregiver hearing and submitted a statement for the record discussing family caregivers and sandwich generation caregivers, programs that support them, AARP caregiving resources, and federal policies to support sandwich generation caregivers and caregivers more broadly. No bill number. Discussed long-term care. No bill number. CMS-2453-NC; Medicaid Program; 2028 Medicaid Home and Community-Based Services Quality Measure Set Submitted comments No bill number. Discussed expanding access to home care. No bill number. Discussed the increasing cost of home care No bill number. Discussed HSA use for telehealth chronic care management services/subscriptions. No bill number. Discussed artificial intelligence and technology

60 Plus Association

2026

TAXATION/INTERNAL REVENUE CODEENVIRONMENT/SUPERFUNDCOPYRIGHT/PATENT/TRADEMARKHEALTH ISSUES

Signed a coalition letter opposing any efforts to raise the corporate tax rate above the 21% level set in the 2017 Tax Cuts and Jobs Act (TCJA). Signed a coalition in support of the Family Business Legacy Act, H.R. 6329. This legislation creates parity in the tax code between the estate and gift taxes by allowing an estate tax deduction for contributions to 501(c)(4), (c)(5), and (c)(6) organizations. Signed a coalition letter urging opposition to proposals that would raise taxes on carried interest investment income.The letter is urging Congress to reject the misnamed Carried Interest Fairness Act, legislation recently reintroduced by Senators Tammy Baldwin, Elizabeth Warren, Bernie Sanders, and other progressive members of Congress. This legislation that would increase the tax rate on carried interest investment by 70%, from 23.8% to 40.8%. Signed a coalition letter in support of H.R.574 - ALIGN Act and highlight the 100% bonus depreciation provision's importance as the tax cut reauthorization efforts continue. Signed a coalition to support of repealing IRA's green new deal subsidies in reconciliation to pay for tax cuts. Signed a coalition letter regarding digital services taxes (DST) in an effort to stop Canadas imposition of a discriminatory digital services tax (DST) on U.S. firms and your efforts to include restrictions on the imposition of DSTs and other unfair digital policies in recently announced trade agreements-providing a model for future trade negotiations. Signed a coalition letter urging the President to index capital gains for inflation.

Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Retroactive Policy Codification

The bill includes a provision to retroactively apply a 2022 federal payment policy for 'software as a service' to January 1, 2023.

Connected Entities

organizationFood and Drug AdministrationThe agency responsible for clearing or approving the devices that qualify as algMap →
organizationDepartment of Health and Human ServicesThe federal agency responsible for implementing the payment policies described.Map →
personMr. JoyceRepresentative from Pennsylvania who introduced the bill.Map →

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy20
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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