S. 1399 (119th)Bill Overview

Health Tech Investment Act

Health|Health
Cosponsors
Support
Bipartisan
Introduced
Apr 9, 2025
Discussions
Bill Text
Current stageCommittee

Read twice and referred to the Committee on Finance.

Introduced
Committee
Floor
President
Law
Congressional Activities
01 · The brief
Plain-English summaryWhat this bill actually does

The Health Tech Investment Act amends Medicare’s hospital outpatient prospective payment rules to ensure certain FDA‑cleared/approved algorithm‑based (AI/ML) healthcare services receive new technology ambulatory payment classification (NTAP) status and payment. It requires the Secretary to set NTAP payments using manufacturer‑submitted cost data (including subscription prices and overhead), to adjust NTAP criteria to include adjunctive algorithm services, and to keep such services in NTAP for at least five years unless adequate claims data justify reassignment.

Why people may split

Liberals emphasize access, equity, and need for post‑market safeguards.

Watch point

Relative to its intended legislative type, this bill is a substantive amendment to Medicare payment law that articulates specific payment mechanisms and definitions and integrates with existing OPPS statutory language, but it delegates important procedural and verification details to the Secretary without statutory guardrails or fiscal acknowledgment.

The Health Tech Investment Act amends Medicare’s hospital outpatient prospective payment rules to ensure certain FDA‑cleared/approved algorithm‑based (AI/ML) healthcare services receive new technology ambulatory payment classification (NTAP) status and payment.

It requires the Secretary to set NTAP payments using manufacturer‑submitted cost data (including subscription prices and overhead), to adjust NTAP criteria to include adjunctive algorithm services, and to keep such services in NTAP for at least five years unless adequate claims data justify reassignment.

The bill also codifies HHS’s November 23, 2022 OPPS policy treating software-as-a-service under hospital outpatient payment rules effective January 1, 2023.

Passage40/100

Technically focused and industry‑friendly but increases payment risk and lacks explicit offsets; passage likely only as part of broader package.

CredibilityPartially aligned

Relative to its intended legislative type, this bill is a substantive amendment to Medicare payment law that articulates specific payment mechanisms and definitions and integrates with existing OPPS statutory language, but it delegates important procedural and verification details to the Secretary without statutory guardrails or fiscal acknowledgment.

Contention62/100

Liberals emphasize access, equity, and need for post‑market safeguards.

02 · What it does

Who stands to gain, and who may push back.

Likely benefits vs burdens50% / 50%
DevelopersLikely burdened

These are examples from the analysis, not a ranked list of the most-affected groups.

Likely helped
  • Potential benefitMore comprehensive reimbursement (including subscriptions) could encourage investment in clinical AI tools.
  • DevelopersFive-year NTAP stability may give developers and hospitals greater revenue predictability for new services.
  • Potential benefitCodifying the SaaS payment policy reduces retrospective billing uncertainty for hospitals and vendors.
Likely burdened
  • Potential burdenBroader NTAP payments and subscription coverage could increase Medicare program spending.
  • Potential burdenLocking payments for up to five years risks continued payment for ineffective or biased algorithms.
  • Potential burdenCMS and providers will face additional administrative burden to collect cost submissions and adjust classifications.
03 · Why people split

Why the argument around this bill splits.

Liberals emphasize access, equity, and need for post‑market safeguards.
Progressive70%

A liberal/left‑leaning observer would view the bill as a policy that can accelerate access to AI/ML clinical tools by ensuring predictable Medicare payment, but would be cautious about oversight and equity.

They would welcome provisions that recognize subscription pricing and include provider/staff costs, while wanting stronger safeguards on evidence, transparency, and patient protections.

Leans supportive
Centrist65%

A centrist/moderate would see this as a pragmatic fix to payment rules that reduces billing uncertainty and aligns OPPS with modern software pricing.

They would favor the predictability for hospitals and vendors but want safeguards to limit fiscal risk and ensure payments reflect value.

Split reaction
Conservative25%

A mainstream conservative would be skeptical, viewing the bill as expanding federal payment commitments and possibly encouraging higher Medicare spending.

They would worry about market distortion, manufacturer influence over prices, and long payment commitments that limit competition or cost containment.

Likely resistant
04 · Can it pass?

The path through Congress.

Introduced

Reached or meaningfully advanced

Committee

Reached or meaningfully advanced

Floor

Still ahead

President

Still ahead

Law

Still ahead

Passage likelihood40/100

Technically focused and industry‑friendly but increases payment risk and lacks explicit offsets; passage likely only as part of broader package.

Scope and complexity
24%
Scopenarrow
52%
Complexitymedium
Why this could stall
  • No CBO cost estimate or projected fiscal impact in text
  • Degree of CMS skepticism about manufacturer‑reported costs
05 · Recent votes

Recent votes on the bill.

No vote history yet

The bill has not accumulated any surfaced votes yet.

06 · Go deeper

Go deeper than the headline read.

Included on this page

Liberals emphasize access, equity, and need for post‑market safeguards.

Technically focused and industry‑friendly but increases payment risk and lacks explicit offsets; passage likely only as part of broader pac…

Unlocked analysis

Relative to its intended legislative type, this bill is a substantive amendment to Medicare payment law that articulates specific payment mechanisms and definitions and integrates with existing OPPS statutory language,…

Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.

Perspective breakdownsPassage barriersLegislative design reviewStakeholder impact map
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