[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1399 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1399

 To amend title XVIII of the Social Security Act to ensure appropriate 
   payment of certain algorithm-based healthcare services under the 
                           Medicare program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 9, 2025

 Mr. Rounds (for himself, Mr. Heinrich, and Mrs. Blackburn) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend title XVIII of the Social Security Act to ensure appropriate 
   payment of certain algorithm-based healthcare services under the 
                           Medicare program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Health Tech Investment Act''.

SEC. 2. ENSURING APPROPRIATE PAYMENT OF CERTAIN ALGORITHM-BASED 
              HEALTHCARE SERVICES UNDER THE MEDICARE PROGRAM.

    (a) In General.--Section 1833(t) of the Social Security Act (42 
U.S.C. 1395l(t)) is amended--
            (1) in paragraph (2)(E), by inserting ``and new technology 
        ambulatory payment classification of algorithm-based healthcare 
        services under paragraph (16)(H)'' after ``(16)(G)''; and
            (2) in paragraph (16), by adding at the end the following 
        new subparagraph:
                    ``(H) Special rule for certain algorithm-based 
                healthcare services.--
                            ``(i) In general.--In the case of a covered 
                        OPD service furnished on or after January 1, 
                        2026, that is an algorithm-based healthcare 
                        service (as defined in clause (ii)) that is 
                        assigned to a new technology ambulatory payment 
                        classification (as described in the final rule 
                        entitled `Medicare Program; Changes to the 
                        Hospital Outpatient Prospective Payment System 
                        for Calendar Year 2002' published by the 
                        Department of Health and Human Services on 
                        November 30, 2001 (66 Fed. Reg. 59897)) on or 
                        after the date of the enactment of this 
                        subparagraph or for which, as of such date, is 
                        currently and has been assigned to a new 
                        technology ambulatory payment classification 
                        for a period of less than 5 years, the 
                        Secretary--
                                    ``(I) shall ensure that such 
                                service is assigned to a new technology 
                                ambulatory payment classification based 
                                on the cost of such service as 
                                submitted by the manufacturer of such 
                                service in a form and manner specified 
                                by the Secretary, including costs for 
                                the technology based on invoice prices, 
                                subscription-based prices, clinical 
                                staff, overhead, and other costs 
                                associated with providing the service;
                                    ``(II) shall adjust the new 
                                technology ambulatory payment 
                                classification pursuant to subclause 
                                (I) as necessary; and
                                    ``(III) may not remove such service 
                                from the new technology ambulatory 
                                payment classification as determined 
                                under subclauses (I) and (II) until the 
                                Secretary determines that adequate 
                                claims data exists to reassign such 
                                service to another ambulatory payment 
                                classification (which in no case may be 
                                before such service has received 
                                payment under the assigned new 
                                technology ambulatory payment 
                                classification for at least 5 years).
                            ``(ii) Adjustment.--The Secretary shall 
                        adjust the application process and criteria for 
                        the new technology ambulatory payment 
                        classification to ensure that, in addition to 
                        currently eligible algorithm-based healthcare 
                        services, algorithm-based healthcare services 
                        that otherwise meet the eligibility 
                        requirements for such classification and are 
                        distinct from but performed concurrently with, 
                        adjunctive to, or provided in any other 
                        modality or form as part of an underlying 
                        service and require additional resources, 
                        meet--
                                    ``(I) the eligibility requirement 
                                that they are distinct new procedures 
                                with a beginning, middle, and end; or
                                    ``(II) any subsequent similar new 
                                technology ambulatory payment 
                                classification eligibility requirement.
                            ``(iii) Definition of algorithm-based 
                        healthcare service.--For purposes of this 
                        subparagraph, the term `algorithm-based 
                        healthcare service' means a service delivered 
                        through a device cleared or approved by the 
                        Food and Drug Administration that uses 
                        artificial intelligence, machine learning, or 
                        other similarly designed software to yield 
                        clinical outputs or generate clinical 
                        conclusions for use by a physician or 
                        practitioner in the screening, detection, 
                        diagnosis, or treatment of an individual's 
                        condition or disease, or any such other similar 
                        service as the Secretary determines appropriate 
                        in consultation with appropriate 
                        organizations.''.
    (b) Codifying OPPS Payment for Software as a Service.--Effective 
for services provided on or after January 1, 2023, the Secretary of 
Health and Human Services shall apply the hospital outpatient 
prospective payment system payment for software as a service policy 
described in the final rule entitled, ``Medicare Program: Hospital 
Outpatient Prospective Payment and Ambulatory Surgical Center Payment 
Systems and Quality Reporting Programs; Organ Acquisition; Rural 
Emergency Hospitals: Payment Policies, Conditions of Participation, 
Provider Enrollment, Physician Self-Referral; New Service Category for 
Hospital Outpatient Department Prior Authorization Process; Overall 
Hospital Quality Star Rating; COVID-19'' published by the Department of 
Health and Human Services on November 23, 2022 (87 Fed. Reg. 71748).
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