Amid a flurry of federal policies related to healthcare in recent months, here are five notes on where healthcare technology is headed under the Trump administration:
1. CMS administrator Mehmet Oz, MD, recently promoted the use of AI avatars during his first all-staff CMS meeting, according to an April 9 report by Wired magazine. Sources told the publication that during the April 7 meeting, Dr. Oz discussed possibly prioritizing AI avatars over front-line healthcare workers, adding that the technologies can help scale up “good ideas” quickly and affordably.
2. In a recent publication of its final rule for Medicare Advantage and Part D in 2026, CMS did not address regulating the use of AI in prior authorization.
3. The Wall Street Journal reported April 7 that President Donald Trump’s tariffs could drive up AI prices and the cost of components for large data centers, which AI companies rely on for the computing power behind their software. If such costs rise, it could decrease discretionary spending in IT budgets and delay hardware refresh cycles, compounding existing macroeconomic concerns.
4. Several states are considering or have already implemented regulations surrounding the use of AI in prior authorization, including California, Illinois, Georgia, Texas, Rhode Island, Minnesota and Florida.
5. In January, Mr. Trump signed an executive order aimed at eliminating AI policies from the Biden administration. The order reverses a Biden-era policy that Mr. Trump claims imposed excessive government regulations on AI development and stifled private sector innovation.
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