Medicare used AI to pre-approve patient care and medical services dropped sharply right after. If algorithms can cut utilization that fast, providers carry volume risk and payers get a cost lever. The

What happened: Medicare is testing AI to conduct prior authorizations aimed at targeting wasteful medical spending, and the use led to a large drop in medical services. Why it matters: The test links AI-driven prior authorization to a sharp reduction in medical services delivered under Medicare.

Medicare is testing AI to conduct prior authorizations aimed at targeting wasteful medical spending, and the use led to a large drop in medical services.

The test links AI-driven prior authorization to a sharp reduction in medical services delivered under Medicare.