STAT+: Medicare’s AI ‘modernization’ project, and the Ohio hospital antitrust battle

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Source: STAT News

Original: https://www.statnews.com/2026/02/23/medicare-ai-modernization-project-ohiohealth...

Published: Mon, 23 Feb 2026 16:18:05 +0000

The Centers for Medicare and Medicaid Services (CMS) launched the Wasteful and Inappropriate Service Reduction (WISeR) model on January 1, 2026 for six years to reduce fraud, waste and abuse in Original Medicare.[2][3][5][6] The model uses artificial intelligence (AI) and machine learning to expedite prior authorization for select abuse-prone services such as skin and tissue substitutes, electrical nerve stimulators, and knee arthroscopy for osteoarthritis.[2][3][5][6] The program covers 6.4 million policyholders in six states: Arizona, New Jersey, Ohio, Oklahoma, Texas and Washington.[3] It excludes inpatient services, emergency procedures and those whose delay would endanger patients.[2][5][6] The participation of providers is voluntary; they can ask for authorization or provide a service with the risk of later checking the payment.[2] Final denial decisions are handled by licensed clinicians, not machines.[4][6] The model targets services with high costs and low clinical benefit, thereby protecting patients and taxpayers.[3][6]