What happened
The US House of Representatives Appropriations Committee approved, on June 9, 2026, an amendment to the FY2027 Labor-HHS appropriations bill that would bar CMS from using federal funding to implement any model that includes prior authorization in traditional Medicare — directly targeting the Wasteful and Inappropriate Service Reduction (WISeR) Model, which uses AI for prior-authorization review. WISeR launched January 1, 2026 in six states (Arizona, New Jersey, Ohio, Oklahoma, Texas, and Washington). The provision is in the House bill only; Senate passage is not guaranteed.
Why it matters
WISeR represents the first large-scale federal deployment of AI in Medicare prior-authorisation decisions. The House provision, if enacted, would shut down the programme mid-deployment and establish a congressional precedent for blocking AI-driven healthcare coverage decisions in Medicare. It signals the ongoing legislative tension between AI-enabled efficiency and patient-access concerns.
Action needed
Healthcare providers and AI vendors involved in WISeR or similar Medicare AI programmes should monitor Senate Appropriations action and FY2027 budget negotiations. The programme continues to operate in six states while the legislative process unfolds — no immediate operational change is required, but contingency planning is warranted.