[Senate Hearing 118-757]
[From the U.S. Government Publishing Office]


                                                      S. Hrg. 118-757

                  ARTIFICIAL INTELLIGENCE AND HEALTH 
                       CARE: PROMISE AND PITFALLS
=======================================================================

                                HEARING

                               BEFORE THE
                               
                          COMMITTEE ON FINANCE
                          UNITED STATES SENATE

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             SECOND SESSION

                               __________

                            FEBRUARY 8, 2024

                               __________
                               
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]                               
                                     
            Printed for the use of the Committee on Finance

                                __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
62-427-PDF                  WASHINGTON : 2026 
-----------------------------------------------------------------------------------     

                          COMMITTEE ON FINANCE

                      RON WYDEN, Oregon, Chairman

DEBBIE STABENOW, Michigan            MIKE CRAPO, Idaho
MARIA CANTWELL, Washington           CHUCK GRASSLEY, Iowa
ROBERT MENENDEZ, New Jersey          JOHN CORNYN, Texas
THOMAS R. CARPER, Delaware           JOHN THUNE, South Dakota
BENJAMIN L. CARDIN, Maryland         TIM SCOTT, South Carolina
SHERROD BROWN, Ohio                  BILL CASSIDY, Louisiana
MICHAEL F. BENNET, Colorado          JAMES LANKFORD, Oklahoma
ROBERT P. CASEY, Jr., Pennsylvania   STEVE DAINES, Montana
MARK R. WARNER, Virginia             TODD YOUNG, Indiana
SHELDON WHITEHOUSE, Rhode Island     JOHN BARRASSO, Wyoming
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
CATHERINE CORTEZ MASTO, Nevada       THOM TILLIS, North Carolina
ELIZABETH WARREN, Massachusetts      MARSHA BLACKBURN, Tennessee

                    Joshua Sheinkman, Staff Director

                Gregg Richard, Republican Staff Director

                                  (II)
                            
                            C O N T E N T S

                              ----------                              

                           OPENING STATEMENTS

                                                                   Page
Wyden, Hon. Ron, a U.S. Senator from Oregon, chairman, Committee 
  on Finance.....................................................     1

                               WITNESSES

Shen, Peter, head of digital and automation for North America, 
  Siemens Healthineers, Washington, DC...........................     5
Sendak, Mark, M.D., MPP, co-lead, Health AI Partnership, Durham, 
  NC.............................................................     7
Mello, Michelle M., JD, Ph.D., professor of health policy and 
  law, Stanford University, Stanford, CA.........................     9
Obermeyer, Ziad, M.D., associate professor and Blue Cross of 
  California distinguished professor, University of California, 
  Berkeley, Berkeley, CA.........................................    11
Baicker, Katherine, Ph.D., provost, University of Chicago, 
  Chicago, IL....................................................    14

               ALPHABETICAL LISTING AND APPENDIX MATERIAL

Baicker, Katherine, Ph.D.:
    Testimony....................................................    14
    Prepared statement...........................................    41
    Responses to questions from committee members................    43
Crapo, Hon. Mike:
    Prepared statement...........................................    45
Mello, Michelle M., JD, Ph.D.:
    Testimony....................................................     9
    Prepared statement...........................................    46
    Responses to questions from committee members................    48
Obermeyer, Ziad, M.D.:
    Testimony....................................................    11
    Prepared statement...........................................    55
    Responses to questions from committee members................    58
Sendak, Mark, M.D., MPP:
    Testimony....................................................     7
    Prepared statement...........................................    60
    Responses to questions from committee members................    62
Shen, Peter:
    Testimony....................................................     5
    Prepared statement...........................................    69
    Responses to questions from committee members................    76
Wyden, Hon. Ron:
    Opening statement............................................     1
    Prepared statement...........................................    80

                             Communications

AARP.............................................................    83
Advanced Medical Technology Association (AdvaMed) Imaging........    85
AHIP.............................................................    86
American Federation of Teachers..................................    90
American Institute for Medical and Biological Engineering........    92
American Medical Association.....................................    93
Asher Informatics PBC............................................   101
Center for AI and Digital Policy.................................   103
Connected Health Initiative......................................   107
Federation of American Hospitals.................................   118
Healthcare Confidentiality Coalition.............................   119
Healthcare Leadership Council....................................   120
Medical Group Management Association.............................   123
National Health Council..........................................   125
National Health Law Program......................................   127
National Nurses United...........................................   130

 
     ARTIFICIAL INTELLIGENCE AND HEALTH CARE: PROMISE AND PITFALLS

                              ----------                              


                       THURSDAY, FEBRUARY 8, 2024

                                       U.S. Senate,
                                      Committee on Finance,
                                                    Washington, DC.
    The hearing was convened, pursuant to notice, at 10:08 
a.m., in Room SD-215, Dirksen Senate Office Building, Hon. Ron 
Wyden (chairman of the committee) presiding.
    Present: Senators Menendez, Carper, Cardin, Bennet, Warner, 
Whitehouse, Cortez Masto, Warren, Thune, Cassidy, Young, 
Johnson, and Blackburn.
    Also present: Democratic staff: Melissa Dickerson, Senior 
Investigator; Eva DuGoff, Senior Health Advisor; Marielle 
Kress, Senior Health Advisor; Marisa Salemme, Senior Health 
Advisor; and Joshua Sheinkman, Staff Director. Republican 
staff: Gable Brady, Senior Health Policy Advisor; Kellie 
McConnell, Health Policy Director; Gregg Richard, Staff 
Director; and Conor Sheehey, Senior Health Policy Advisor.

   OPENING STATEMENT OF HON. RON WYDEN, A U.S. SENATOR FROM 
             OREGON, CHAIRMAN, COMMITTEE ON FINANCE

    The Chairman. The Finance Committee will come to order. The 
first thing I want to say to our guests is, obviously this is a 
very hectic day in the U.S. Senate--something of an 
understatement--and I want our witnesses to know that our 
colleagues are all trying to juggle responsibilities.
    So I do not want our witnesses to feel in any way that the 
fact that Senators will be coming and going minimizes the 
importance of this hearing. And my friend and partner Senator 
Crapo is an example of trying to be several places at once. And 
so, as we begin, I want to ask unanimous consent that Senator 
Crapo's prepared statement be entered into the record after my 
opening statement.
    [The prepared statement of Senator Crapo appears in the 
appendix.]
    The Chairman. This morning, the Finance Committee meets to 
discuss the use of artificial intelligence in health care. The 
focus is going to be on the technology that's being used in 
Federal health programs such as Medicare and Medicaid. There is 
no doubt that some of this technology is already making our 
health-care system more efficient.
    But some of these big data systems are riddled with biases 
that discriminate against patients based on race, gender, 
sexual orientation, and disability. It is very clear in my 
judgment--and technology is an area I have tried to specialize 
in since my arrival in the U.S. Senate, when only Senator Pat 
Leahy knew how to use a computer--it is very clear that not 
enough is being done to protect patients from bias in AI.
    We work to ensure innovation. For example, in the 1990s we 
improved patient care, and we empowered telemedicine, digital 
signatures, and other efforts. Congress now has an obligation 
to ensure the good outcomes from AI set the rules of the road 
for new innovations in American health care.
    Today we are going to discuss the role Congress and the 
committee must play in helping strike a balance between 
protecting innovation and protecting patients and their privacy 
with legislative proposals like the Algorithm Accountability 
Act, which I have introduced with my colleague and friend 
Senator Booker, and Congresswoman Yvette Clarke, a very 
knowledgeable member of Congress on technology issues. Our 
legislation would tackle these concerns head-on.
    There are a lot of reasons to be optimistic about the 
potential of AI to improve health care. Today, the industry 
faces a host of challenges, all made worse by the strain of the 
COVID pandemic on our health system. There is a workforce 
shortage; existing providers are facing high rates of burnout; 
health-care costs are rising faster than wages; and there is an 
ever-growing gap between the care that is needed and the care 
that is being delivered.
    Already, AI tools are being deployed to reduce some of 
these pressures and ease the strain on the industry and 
providers. Some doctors use the technology to prepopulate, for 
example, clinical notes and their emails to reduce workloads, 
submit bills to insurers, and help to reduce administrative 
waste and even help with diagnostics.
    Primary care providers can use these tools to screen for 
certain diseases and connect patients with specialists for 
treatment that saves patients time and money and leads to 
better, more timely care. So, that brings us to the area that 
this committee has had a special interest in, and that's 
Medicare and Medicaid.
    Here is an opportunity to improve workload for providers 
and help patients, all of whom are trying to make sense out of 
this new AI reality. And addressing these challenges with new 
technology has to mean better patient outcomes, while at the 
same time protecting privacy.
    And that goes right to the heart of my philosophy, for now 
several decades, with respect to technology. Technology gives 
us a chance to innovate, and that innovation is not mutually 
exclusive when it comes to privacy. Smart policies give you 
both. They give you innovation and privacy. Not-so-smart 
policies give you less of both. So, as we begin this effort 
with respect to AI and these developments, let us keep that in 
mind.
    So, there are clear, glaring examples of AI tools being 
developed with data that perpetuate racial biases, and I have 
been pleased to be working on this with Senator Booker and 
Congresswoman Clarke, who have really zeroed in for all of us 
in both the Senate and the House on some of these issues, 
because these biases have been deployed in ways that bypass 
important doctor expertise, and that leads to inadequate care 
for patients.
    So the committee is very lucky today to have Dr. Ziad 
Obermeyer, who in 2019 discovered racial bias in an AI tool 
developed by the health-care company Optum, a subsidiary of the 
UnitedHealth Group, that was used by providers across the 
country to offer care management services.
    Dr. Obermeyer found that the tool on average required Black 
patients to present with worse symptoms than White patients in 
order to qualify for the same level of care. Folks, that is not 
a close call. It is just not! And we have seen it in so many 
other areas, just in the last few days still trying to sort 
through the concussion settlements that have been discussed 
with respect to NFL players. So I am very pleased that Dr. 
Obermeyer is here, and we appreciate his expertise.
    That algorithm was available to thousands of doctors across 
the country, potentially impacting millions of patients. How 
does such a flawed system make its way into general use? Well, 
it's not very hard to figure that out. Nobody is home. Nobody 
is watching. No guard rails. No guard rails to protect the 
patients from flawed algorithms in AI systems.
    To make matters worse, the technology the insurance 
companies or health systems use can play a role in what care 
patients receive--and what services are approved or denied. The 
Department of Health and Human Services does not, as of today, 
really oversee the use of these systems. Big problem, folks.
    Most of us here would agree that there are many ways this 
technology can be used to improve health care and patient 
outcomes. As long as we increasingly rely on technology like AI 
to make decisions in every part of our day-to-day lives, the 
Finance Committee--we are going to work on a bipartisan basis.
    Senator Crapo and I have talked about this a number of 
times. We are going to work in a bipartisan way to deal with 
these crucial issues. I happen to believe that one of those 
keys is to have guard rails in place to protect patients, 
particularly in Medicare and Medicaid, and I do not believe the 
current laws go far enough to deal with that.
    That is why we came forward with the Algorithm 
Accountability Act. It does not answer all the questions, but 
it is all about common sense. We talked to technologists, we 
talked to authorities, particularly about some of the first 
steps, and that is what we did with the Algorithm 
Accountability Act to lay the groundwork to root out the 
algorithmic biases from these systems.
    As applied to health care, our legislation would require 
health-care systems to regularly assess whether the AI tools 
they develop or select are being used as intended and are not 
in effect generating more, and what amounts to perpetual, 
harmful bias.
    I will close with this. The same protections in my 
Algorithm Accountability Act have to be in Medicare and 
Medicaid. So what we need, if I could sum it up, is 
transparency in how the tools are developed and used to foster 
trust and accountability for how they are used in health care, 
making sure we preserve the privacy of patients, and letting us 
use this as an opportunity to give everybody in America the 
chance to get ahead.
    I mean, it is really about equity. That is what I want to 
have our committee work towards on a bipartisan basis. When you 
look at what was done in this committee room with the historic 
tax reform bill--it was in 1986 before a lot of our audience 
was born--it was all about giving Americans, everybody, the 
opportunity to get ahead.
    And that is our country at its best. That is what we are 
all about, and we have to make sure these tools further equity 
in health care and do not perpetuate harmful bias or 
disadvantage hospitals and providers who service low-income 
patients or communities of color.
    The Food and Drug Administration and the Office of the 
National Coordinator for Health IT have proposed some new 
rules. I think they are a step forward. My own take, speaking 
for myself--my colleagues, as you know, are juggling a lot 
today--I do not think these rules go far enough.
    I believe more is needed to protect patients from flawed 
systems that can and will directly affect the health care they 
receive. I look forward to working with my colleagues on the 
committee to identify ways we can protect patients and improve 
their care going forward.
    I say to our guests, that is what this committee is all 
about: working in a bipartisan way. We did it this Congress 
with PBMs, for example, these middlemen. We have done it with 
respect to mental health.
    We have a lot of issues on our plate, but we try to tackle 
them in a bipartisan way. And I want to thank our witnesses for 
testifying at today's hearing, and I look forward to hearing 
them.
    [The prepared statement of Chairman Wyden appears in the 
appendix.]
    The Chairman. Now, let's see. We are going to have to 
introduce these wonderful people. Peter Shen is here, director 
of digital and automation, North America at Siemens. He focuses 
on introducing new and emerging technologies in the health-care 
field. He is an academic star in biomedical engineering and 
mathematical sciences from Johns Hopkins.
    Mark Sendak is co-lead at the Health AI Partnership. That 
is a collaboration between academic systems and businesses and 
Federal entities. He is the population, health, and science 
lead at the Duke Institute for Health Innovation. If I go on 
and on about Dr. Sendak, you will be here till breakfast. But 
we are glad he is here.
    Michelle Mello is here, and Michelle comes from my alma 
mater. You know, I wanted to play in the NBA. I got a 
scholarship to Cal at Santa Barbara, and I did not get to 
Stanford as an undergraduate until it was clear I was not going 
to make it. So glad you are here, Dr. Mello. She leads 
empirical health. She's the empirical health law scholar, and 
her research focuses on understanding the effects of law and 
regulation. As I say, she is a professor now both at Stanford 
Law School and Stanford University School of Medicine. Stanford 
Law School is no longer right across from ugly anymore. It has 
changed. Glad you are here.
    Dr. Obermeyer--I threw some bouquets out already. We are 
just really pleased he is here. And he is an associate 
professor and the Blue Cross distinguished professor at UC 
Berkeley. He was named one of the 100 most influential people 
in AI by Time magazine for his work that I discussed already.
    And, Doctor, am I pronouncing this right: Biker?
    Dr. Baicker. Baker spelled funny.
    The Chairman. Baicker. Yes, that is right; an Oregonian, 
great. Leading scholar on the economic analysis of health-care 
policy. She served as a Senate-confirmed member of the 
President's Council of Economic Advisors. She received her 
Ph.D. in economics from Harvard.
    We welcome all of you, and we will include all your 
prepared remarks as a part of the record. Dr. Baicker, where in 
Oregon are you from?
    Dr. Baicker. I am unfortunately not from Oregon.
    The Chairman. Oh; I thought I heard you say you were from 
Oregon.
    Dr. Baicker. No. I did a research project based in Oregon 
and had an opportunity to spend some time there, and had a 
wonderful introduction to----
    The Chairman. Well, come back. I am glad we have sorted out 
your connection.
    Dr. Baicker. Well, I now consider myself invited to return.
    The Chairman. You do. All right. We have sorted that out.
    Let's go. Mr. Shen?

  STATEMENT OF PETER SHEN, HEAD OF DIGITAL AND AUTOMATION FOR 
      NORTH AMERICA, SIEMENS HEALTHINEERS, WASHINGTON, DC

    Mr. Shen. Chairman Wyden, on behalf of Siemens Healthineers 
and our nearly 17,000 employees in the U.S. and approximately 
71,000 employees globally, thank you for the opportunity today 
to testify on the topic of artificial intelligence in health 
care.
    My name is Peter Shen, and I am the North America head of 
digital and automation for Siemens Healthineers. My career 
focus is on the introduction of new and emerging technologies 
in the health-care market, including artificial intelligence.
    Siemens Healthineers is a leading medical technology 
company with more than 120 years of history and experience 
bringing breakthrough innovations to the market that enable 
health-care professionals to deliver the best care for 
patients. Our core portfolio includes imaging, diagnostics, and 
therapies augmented by digital technologies and AI. We partner 
with more than 90 percent of leading health-care providers to 
address population growth and chronic disease prevalence, 
health-care workforce shortages, and the lack of access to care 
to underserved areas.
    We have the distinction of being the only medical 
technology company capable of end-to-end cancer care, from 
diagnosis and screening to treatment and survivorship. This is 
a responsibility we take very seriously, as we keep patients at 
the center of everything we do.
    Siemens Healthineers has been working on applying 
artificial intelligence in medical technology for more than 20 
years. At our AI Office of Big Data here in the U.S., we have 
created and maintained one of the most powerful supercomputing 
infrastructures dedicated to developing AI. This allows our 
research scientists to collect, prepare, organize, and secure 
the identified data needed to train and deliver accurate AI 
algorithms. From its inception, we created and maintained a 
transparent quality assurance process, which involves clinical 
validation to guarantee the data being used to train the AI 
algorithms is accurate for diagnosis and treating disease, and 
is based on a balanced cohort of people of different ages, 
genders, and ethnicities, thus ensuring that we develop 
reliable, accurate, and unbiased AI algorithms that protect the 
patient and are reflective of the patient population that they 
will be applied toward.
    Unlike AI for operational work or workflow improvements 
that help reduce position burden or improve patient experience, 
many Siemens Healthineers clinical AI algorithms can be termed 
as 
Algorithm-Based Health-care Services. These analytical services 
delivered by FDA-cleared devices use AI and machine learning to 
produce quantitative and qualitative clinical outputs for 
physicians to use in the diagnosis or treatment of disease that 
were previously not possible to visualize or calculate without 
the assistance of AI.
    The patient journey is at the heart of Siemens Healthineers 
AI work, and AI is already helping to improve care and outcomes 
for the patient. Clinical AI or Algorithm-Based Health-care 
Services can be an important service when used to diagnose 
neurodegenerative diseases for patients. Changes in brain 
volume over time can be a powerful predictor of diseases such 
as Alzheimer's. But neurologists are challenged with needing 
actionable patient-specific brain volume data to diagnose and 
treat such patients more accurately.
    Our clinical AI algorithm services can automatically 
segment different structures of the brain on an MRI image, 
measure their volumes, and compare these volumes to a normal 
brain database. Brain volume deviations from a norm are 
highlighted in a comparative report from the neurologist to 
provide additional, objective, quantitative information that 
they can use to make a more accurate and informed diagnostic 
and treatment, resulting in better patient outcomes.
    While CMS has recognized the value and the complex nature 
of Algorithm-Based Health-care Services, the agency's 
reimbursement decisions have not uniformly and consistently 
ensured appropriate levels of payment for these services. This 
inconsistent, unpredictable approach stifles adoption by 
providers, especially in rural and underserved areas, and 
therefore restricts patients' access to new and innovative 
diagnostic tests and treatments.
    We support a solution that ensures a predictable and 
consistent approach by CMS through a temporary and separate 
payment for 5 years based on manufacturer-supplied cost data. 
This approach recognizes the cost to develop and integrate AI 
into the clinical setting and reimburses for the distinct 
clinical value Algorithm-Based Health-care Services provide.
    Guaranteeing a consistent reimbursement process would 
empower hospitals and providers to invest in AI confidently, 
ensuring their services are appropriately reimbursed. Without 
this financial support, these providers will face difficulties 
in embracing and integrating AI technologies, ultimately 
potentially denying revolutionary services to patients.
    Siemens Healthineers believe AI has the greatest potential 
to improve access to care, assist physicians in the diagnosis 
of disease, and enable more personalized treatments for the 
patient. As a market leader in research and training, AI, and 
medical technologies, we are excited about what the future 
holds. It is critical that we all work together to ensure we 
create trust with consumers and build ethical, transparent, and 
accessible AI in health care to ultimately improve patient 
outcomes.
    Again, thank you for the opportunity to testify before you 
today, and I look forward to your questions.
    [The prepared statement of Mr. Shen appears in the 
appendix.]
    The Chairman. Thanks for getting us off to a good start.
    Dr. Sendak?

         STATEMENT OF MARK SENDAK, M.D., MPP, CO-LEAD, 
               HEALTH AI PARTNERSHIP, DURHAM, NC

    Dr. Sendak. Chairman Wyden, Ranking Member Crapo, and 
members of the committee, my name is Mark Sendak, and I 
appreciate the opportunity to serve on the panel today. I must 
note that any views expressed in my testimony are my own and 
may not reflect those of my employer or the multi-institutional 
partnership I help lead.
    I serve as the population health and data science lead at 
the Duke Institute for Health Innovation, DIHI for short, and I 
am the co-lead for Health AI Partnership. I have been 
developing and implementing AI technologies in clinical care 
for over a decade.
    Since DIHI's founding in 2013, our team has developed and 
implemented over 20 AI technologies in clinical care. We were 
the first in the U.S. to implement a deep learning model in 
routine care. We were the first to implement Model Facts labels 
for AI tools, and we have incubated four companies to 
commercialize AI products built at Duke.
    Our team has demonstrated the benefits of AI in health 
care. Duke dramatically improved the quality of sepsis care 
using our Sepsis Watch system. Duke proactively manages chronic 
diseases in Medicare patients by using AI to identify patients 
at risk of complications.
    But my comments today will not focus on the amazing work I 
have been a part of at Duke. Today, I am speaking with you 
primarily as the co-lead of Health AI Partnership. In 2018, a 
mentor of mine asked me, ``How do we get AI out of the ivory 
tower?'' At that time, my experience with AI at Duke was 
unimaginable to people outside of a few exceptional islands of 
excellence, and there was minimal infrastructure being built to 
get AI outside into low-resource settings.
    In 2021, I helped launch Health AI Partnership to advance 
the safe, effective, and equitable use of AI in all health-care 
organizations. We exist to get AI out of the ivory tower.
    The Senate Finance Committee can take concrete action to 
advance accountability, equity, privacy, and transparency in 
the use of AI in health care. The Medicare program ensures 
high-quality care for beneficiaries through conditions of 
participation and other mechanisms. There is a unique 
opportunity for this committee to strengthen Medicare controls 
on the use of AI, and to facilitate investments in technical 
assistance, technical infrastructure, and training.
    First, we can talk about guard rails. Through Health AI 
Partnership, we work with 20 organizations across the U.S. to 
surface and disseminate AI best practices. We interview leaders 
and run case-based workshops to develop practical resources for 
health-care leaders asking basic questions. How do I evaluate 
different externally built AI products? How do I navigate the 
new FDA clinical decision support guidance? How do I assess the 
potential future impact of this AI product on health 
inequities? How do I align organizational processes with the 
White House blueprint for an AI bill of rights?
    Health AI Partnership resources and programs provide guard 
rails for high-resource organizations that are rapidly 
accelerating their use of AI. Adoption of these guard rails by 
hospitals could be required by Medicare program participation, 
but guard rails only serve the few organizations that are 
already on the AI adoption highway.
    We must also address the more critical need for roads, on 
ramps, and bridges--the core infrastructure investments needed 
to ensure that all people in the U.S. benefit from AI in health 
care. Most health-care organizations in the U.S. need an on 
ramp to the AI adoption highway. They are struggling with 
clinician burnout. They face razor-thin or negative margins. 
They are entirely dependent on external EHR vendors for 
technology expertise and assistance.
    Simply put, they do not have the resources, personnel, or 
technical infrastructure to embrace guard rails for the AI 
adoption highway. Core infrastructure investments are needed 
for technical assistance, technology infrastructure, and 
training. Fifteen years ago, Congress funded the procurement of 
EHRs along with 62 regional extension centers to support EHR 
implementation in low-
resource settings.
    While EHRs are far from perfect, Federal programs did 
successfully enable broad adoption of the technology. Health-
care organizations urgently need technology infrastructure that 
is distinct from EHRs that enables the efficient evaluation, 
clinical integration, and monitoring of AI tools.
    Last, training programs are needed to rapidly equip health-
care leaders with the foundational knowledge required to 
locally govern AI. Local AI governance needs to be a core 
competency for health-care organizations.
    Thank you again for the opportunity, and I look forward to 
answering your questions.
    [The prepared statement of Dr. Sendak appears in the 
appendix.]
    The Chairman. Dr. Sendak--and, Dr. Mello, I am sure you 
heard your colleague, your seat mate, talk about getting 
everything out of the ivory tower, and no pressure, but I am 
sympathetic. I was a guide at Hoover when I was on campus, and 
I always got lost trying to remember exactly how many books 
there were, because we were not keeping up.
    So, no pressure, but get us out of the ivory tower, please.

STATEMENT OF MICHELLE M. MELLO, JD, Ph.D., PROFESSOR OF HEALTH 
       POLICY AND LAW, STANFORD UNIVERSITY, STANFORD, CA

    Dr. Mello. Thank you, Mr. Chairman. So you were literally 
in an ivory tower?
    The Chairman. I was.
    Dr. Mello. Yes. Well, I am so pleased to have the 
opportunity to speak with you, and I am sorry that I am coming 
to you today with a voice that is more suitable for jazz 
singing than testifying.
    I am part of a group of ethicists and data scientists and 
physicians at Stanford that evaluates AI deployments that are 
proposed for use in Stanford health-care facilities, which care 
for over a million patients per year. I would like to share 
with you the three most important things that we have learned 
in doing this work.
    First, while hospitals increasingly recognize the need to 
vet AI tools before use, most health-care organizations do not 
have robust review processes yet. They need help, and there are 
many things that Congress can do to help.
    Second, to be effective, governance cannot focus only on 
the algorithm. It also has to encompass how the algorithm is 
incorporated into clinical workflows, and by workflows, I mean 
how physicians and nurses and other staff interact with each 
other, with the AI tool, with patients, and with other systems.
    Conversations about regulating AI mostly focus on the 
algorithms, but equally important is asking questions about how 
medical professionals will interact with them. For example, we 
have looked at the onus on medical professionals to evaluate 
whether model output is accurate, given the information they 
have at hand and the time they have available.
    Large language models like ChatGPT are used to summarize 
clinic visits, doctor's notes, and even draft replies to 
patient's emails. Developers assume the doctors will carefully 
edit those drafts before they are submitted. But will they?
    To address such issues, oversight must go beyond the 
algorithm to reach how adopting organizations will use it. To 
take a simple analogy, if we want to prevent motor vehicle 
accidents, it is not enough to just set design standards for 
cars. Road safety features, driver's licensing requirements, 
and rules of the road also help keep people safe.
    Third, because the success of AI tools depends on the 
organization's ability to support them during use, the Federal 
Government should establish standards for organizational 
readiness and responsibility to use health-care AI tools, as 
well as for the tools themselves.
    But it would be a mistake to enshrine in legislation 
detailed standards for such a fast-moving field. We must have 
the humility to acknowledge we do not know what the right 
standards will be 2 years from now. Regulation needs to be 
adaptable, or else it will risk irrelevance--or worse, chilling 
innovation without producing countervailing benefits.
    The wisest course is for the Federal Government to foster a 

consensus-building process that brings experts together to 
create standards and processes for evaluating proposed uses of 
health-care AI. It can also require that entities regulated by 
Federal agencies adhere to those same standards and processes.
    For example, the Medicare certification process could be 
used to require that hospitals have a plan for vetting AI tools 
before deployment and monitoring them afterwards. The 
initiative currently underway to create a network of AI 
assurance labs is right on track. These centers can develop 
consensus-based standards and perform some evaluations of AI 
tools for organizations that lack the resources to do it 
themselves. Adequate funding is critical to their success.
    Some aspects of AI review have to happen within individual 
health-care organizations, though. They can best identify 
problems that arise from integration into workflow. Regulatory 
requirements can ensure that organizations invest in making 
that happen, just as the Federal regulations known as the 
Common Rule did for ethical review of human subject research.
    We have developed such a review process at Stanford. Data 
scientists evaluate proposed AI tools for bias and clinical 
utility, and ethicists interview patients and clinicians and 
developers to learn what they are worried about.
    Finally, do not forget about health insurers, for potential 
harm can result when insurers use algorithms to make medical 
necessity determinations, as recent investigations of Medicare 
Advantage plans have shown. In theory, human reviewers are 
making the final calls. In reality, they may have little 
discretion to overrule the algorithms.
    CMS's final rule addresses this by allowing algorithmic use 
by Medicare Advantage Plans but requiring them to account for 
individual circumstances and have a medical professional review 
each determination. But even as clarified this week, the final 
rule leaves open important questions about what it means to 
merely use algorithms as opposed to letting them drive coverage 
decisions, or to account for individual circumstances, or to 
have meaningful human review.
    So, in summary, to support health-care organizations and 
insurers, Congress should require that health-care 
organizations have processes for determining whether planned 
uses of AI tools meet certain standards; fund a network of AI 
assurance labs to develop standards and provide expertise and 
infrastructure for evaluation; require AI developers to 
disclose necessary information for evaluations; work with CMS 
on future guidance for health plans; and ensure that Federal 
agencies have clear authority to require regulated entities to 
implement these standards. Clarity and specificity are very 
important here and will be insisted upon by the courts.
    Thank you, and I welcome your questions.
    [The prepared statement of Dr. Mello appears in the 
appendix.]
    The Chairman. Thanks very much, and we will have questions 
in a moment. And I am interested also in getting some of your 
work connected with what is going on in my State at Oregon 
Health Sciences University. So, thank you very much.
    Dr. Obermeyer?

STATEMENT OF ZIAD OBERMEYER, M.D., ASSOCIATE PROFESSOR AND BLUE 
  CROSS OF CALIFORNIA DISTINGUISHED PROFESSOR, UNIVERSITY OF 
               CALIFORNIA, BERKELEY, BERKELEY, CA

    Dr. Obermeyer. Thank you for this opportunity to address 
the committee. I am a professor at Berkeley, but my research on 
AI is inspired by my clinical practice as an emergency 
physician. I have worked in academic hospitals in Boston and 
now at a small hospital on the Navajo Nation, and I have seen 
firsthand how medical innovations can save lives.
    But over my 10 years of practice, I have also made a lot of 
mistakes. Medicine is a hard job, and I wonder, Senator, if you 
face similar problems in your work. You have to process 
enormous amounts of information----
    The Chairman. You think? [Laughter.]
    Dr. Obermeyer. You have to process enormous amounts of 
information. The information is often uncertain and imperfect, 
and mistakes have enormous consequences. The fact that I have 
made a lot of mistakes myself is actually what makes me so 
optimistic about artificial intelligence.
    When we talk about AI, it is often very abstract. I want to 
give a very concrete example of how it can help patients, by 
telling you about sudden cardiac death. So that is exactly what 
it sounds like. People just drop dead from fatal arrhythmias, 
and that kills about 300,000 Americans every year.
    The scale of that number is just incomprehensible. Each of 
those 300,000 is a friend, a family member, a loved one who 
just disappears, and what makes it even more tragic is, we have 
a cure. Those deaths are preventable. If we knew those people 
were at high risk before they died, we would implant a 
defibrillator to shock their hearts back into a normal rhythm.
    So, it is not just that we miss 300,000 opportunities every 
year to save those lives; when we do place defibrillators, we 
often place them in the wrong people. About a third of 
defibrillators end up in people who do not go on to have a 
fatal arrhythmia.
    So, we waste millions of dollars, we expose patients to 
health risks, and we get no benefit, all because we do not know 
who is at high risk and who is not. This is a problem that AI 
can help with. The work that I am doing today that I am most 
excited about uses patient's electrocardiograms, the wave form 
itself, to predict sudden cardiac death.
    We do a lot better than current methods, which means that 
one day we can do better in getting defibrillators into the 
right people, take some of those wasted defibrillators away 
from people we put them in who are low risk and do not benefit, 
and give them to some of the people who are at high risk that 
doctors currently miss.
    In health care, it is uncommon that we get a chance to both 
save lives and reduce costs. Normally we have to pick one or 
the other, and that is why I think AI is going to be so 
transformative for our health-care system.
    The use cases go well beyond sudden cardiac death, 
extending to cancer metastasis prediction, Alzheimer's disease. 
AI is helping to discover new antibiotics, and it can even help 
identify social vulnerability. We can train an algorithm to 
spot subtle signals in X-rays of injuries that can help 
emergency doctors like me find patients who are the victims of 
violence when they come through the ER, which is something that 
we struggle to do today.
    Despite all of my optimism, I also worry that AI may end up 
doing more harm than good if we do not act now. In past work, 
as you mentioned, Senator, my colleagues and I found large-
scale racial bias in the family of algorithms that are 
affecting health-care decisions for up to 150 million Americans 
every year.
    These algorithms should have been a great use case for AI. 
They were meant to flag patients who are at high risk of future 
health problems, so that we can help them with their health 
needs today. But unfortunately, a design choice in building 
those algorithms made them biased.
    They predicted a patient's health-care costs instead of 
their health-care needs. Now, costs and needs are very 
different. Underserved patients, which includes Black patients 
but also extends to rural patients and any underserved 
patients, have less money spent on them by our health-care 
system today because of barriers to access and because of 
discrimination.
    And that means that the AI saw that fact clearly. It 
predicted the cost accurately, but instead of undoing that in 
the quality, it reinforced it and enshrined it in policy. 
Senator, you and Senator Booker sent strongly worded letters to 
major health insurance companies in the wake of that study, and 
I believe those had a great impact.
    But unfortunately, some of those biased algorithms that we 
studied are still in use today, and some of their problems 
surfaced in an investigation of care denial for use of AI in 
insurance that resulted in harm to vulnerable patients.
    I think those examples highlight the need for oversight, 
and I think there are specific things that this committee and 
Congress in general can do for the programs under its 
jurisdiction to help.
    First, toward your goal of transparency, I think 
specificity is incredibly important. We should know exactly 
what an algorithm is predicting. If it is predicting cost, the 
developers should not be able to say that it is predicting risk 
or needs or something else.
    Second, accountability. We need to be measuring 
performance, and especially performance in protected groups 
under the law in new, independent data sets that the algorithm 
has never seen, that are diverse enough to reflect the majority 
of the American population, not just the ivory tower. This is a 
basic part of good machine learning practice, and we should not 
take algorithm developers' word that it is performing 
correctly.
    Third, I think that government programs should be willing 
to pay for AI that generates value and should price those 
services according to the basic principles of health economics. 
We do not need to settle for the often poor-quality products 
that are put in front of us by developers today. We can shape 
that market, thanks to the purchasing power of those programs.
    Thank you very much again for this opportunity.
    [The prepared statement of Dr. Obermeyer appears in the 
appendix.]
    The Chairman. Thank you, Doctor, and I heard you say--and 
correct me if I did not hear it right. I heard you say there 
are algorithms in use today that are promoting bias; is that 
correct?
    Dr. Obermeyer. I believe that is true.
    The Chairman. So, can you give me a ballpark on how many 
algorithms are being used today that promote bias in health 
care?
    Dr. Obermeyer. When we did our work in 2019, there was a 
family of algorithms that included the one that we studied but 
was not limited to that, that were being used not just by 
private companies, but also by government programs and academic 
research groups, that were all predicting costs but being used 
to make decisions about health.
    The estimate at that point was that this was about 150 
million patients every year whose decisions about extra help 
with their health were being affected. Unfortunately, if you 
look at all of those companies, none of them have publicly 
disavowed the use of these kinds of algorithms and have 
clarified that they are no longer using them.
    The Chairman. Well, what was their response to your 
essentially blowing the whistle? And I apologize to all our 
guests. I just wanted to kind of freeze-frame this question, 
because it is so important, since it reflects current bias. So, 
these were big operations in health care.
    These were not like mom-and-pop shops, and you are saying 
150 million people were involved then, in 2019, showing bias in 
health care. You brought it to their attention (a), and (b), 
they did not seem to do anything about it, according to you. 
What was their response? Not interested? Who cares?
    Dr. Obermeyer. On one level, their response was very 
positive. So, in the wake of our study, I actually worked on a 
pro bono basis with the technical teams at the company whose 
algorithm we studied, and we rebuilt that algorithm and the 
same data sets to predict a different outcome, in a way that 
made that algorithm much less biased.
    But since then, it is not totally clear what has happened 
and whether the current algorithm--or the algorithm that we 
developed--or the original version is still being sold and 
marketed for the original purposes.
    The Chairman. So, would it be fair to say that as of 
today--because you found 150 million patients were being 
subjected to bias--you have one aspect of this corrected? But 
from the seat of your pants, and this is not--I just want to 
make sure my colleagues get a sense of the proportions here.
    Your assessment would be probably 100 million patients, 
even if you take it down some for that one example--100 million 
patients today are being discriminated against in terms of bias 
in algorithms. Would that be fair?
    Dr. Obermeyer. I believe that those cost-predicting 
algorithms are still being used, and I have seen no evidence 
that they have been taken out of use or are no longer being 
marketed for the same purpose that they were originally being 
used for.
    The Chairman. And Dr. Sendak wants to say something, and 
then we are going to get Dr. Baicker back in the game here. 
Doctor? I apologize to all of you. I just thought that it was 
so important to get a read on the number of people being 
subjected to algorithm bias.
    I say to my two colleagues, thank you very much, both of 
you, for coming, and I know there has been a lot going on this 
morning. We just heard from one of the leaders in the field 
that it was his judgment that 100 million patients are still 
being victims, as of now, to algorithmic bias.
    Dr. Sendak, and then we will move on to Dr. Baicker and my 
colleagues at the end of this discussion.
    Dr. Sendak. So I just want to put a pin in a point where my 
colleague Dr. Obermeyer led some of the initial work showing 
racial bias in algorithms. So, over the last 6 months we have 
been interacting with a disability rights group.
    Obviously, disability status is a protected class, legally, 
that is named in the Office of Civil Rights final rule or 
proposed rule. And in our work with them, there are almost no 
empirical studies looking at disability bias in algorithms that 
are currently used. So, I mean when you ask about bias, I know 
that we often think about racial bias. But the empirical 
evidence to look at other vulnerable groups is significantly 
lacking.
    The Chairman. Okay.
    Dr. Baicker?

 STATEMENT OF KATHERINE BAICKER, Ph.D., PROVOST, UNIVERSITY OF 
                      CHICAGO, CHICAGO, IL

    Dr. Baicker. Thank you, Senator Wyden. I am honored to be 
here and have the chance to talk with you all about this very 
important topic. I am provost of the University of Chicago, and 
engaged with a number of different health-care organizations, 
but of course I am speaking only for myself.
    I wanted to elevate two themes that we have heard about 
from our colleagues, and that I know are of vital importance to 
ensuring that all Americans have the opportunity to benefit 
from AI algorithms.
    The first is that these algorithms can increase the quality 
of patient care by targeting resources to the patients who need 
them most. You heard about the case of sudden cardiac death. 
There are many other examples across the health-care continuum 
of places where we overuse care in patients where it is not to 
their benefit and increases cost and decreases accessibility. 
And we underuse the same type of care for other patients, who 
go without these vital services that would improve their 
health. AI algorithms can help us predict who is most likely to 
benefit from care.
    There is enormous risk of bias, as you have heard about, 
but there is also risk of bias, inadvertently, from physicians 
themselves. I would be concerned that every patient who sees 
any health-care provider is being treated in a way that is 
consistent with that provider's experience with individual 
patients, with things that have happened recently in that 
provider's patient panel.
    Adding guidance from AI algorithms can help undo the bias 
that any individual is going to experience. And putting the two 
together can improve the quality of care and make innovative 
care more affordable, because even very expensive health care 
is well worth it when it improves a patient's quality and 
length of life, but becomes unaffordable when it is deployed in 
patients for whom there is really minimal benefit. That raises 
the cost of insurance and makes health care less affordable for 
individuals, as well as for Federal programs like Medicare, and 
Federal and State programs like Medicaid.
    Now, if we are going to pay for this kind of care to make 
sure that the best combination of human and data is available, 
those algorithms need to be tested rigorously with a broad 
panel of patients in appropriate settings.
    As my colleague noted, the application of these in 
different settings may have very different results. What looked 
like it worked well in a small, homogeneous patient panel may 
have very different effects for different patients. The way in 
which algorithms are implemented is going to affect how usable 
they are for clinicians, and therefore how beneficial they are 
to patients.
    So we have a strong interest in rigorously testing these 
algorithms, the same way we would for any other kind of medical 
innovation. Beyond individual patient quality and the value of 
care though, I think there is even greater opportunity to 
reform the way we deliver health care system-wide.
    Right now, there is an under-incentive to invest in care 
that would improve a patients' well-being over decades. This is 
particularly problematic for Medicare. Individual insurers or 
the employers who purchase plans for privately insured 
employees may not see the return to investing in care that is 
going to avert a heart attack 20 or 30 years later, when 
patients are on Medicare.
    There is an incentive to invest in care that patients can 
appreciate the value of in the near term, but often the long-
term benefits of the care may be hard to discern, especially 
when patients are healthy, before they are sick and need the 
quality of care that the insurance is meant to provide.
    So there is a strong public policy role to promote 
investment in the kind of care that will improve health in the 
long run, and AI offers us a tool to better capture that and 
therefore better reward it and incentivize it. Just as risk 
adjustment now provides a mechanism to deter insurers from 
selectively enrolling only healthy people, having that kind of 
population-level long-run risk adjustment can help provide the 
resources needed to invest in people's long-term health, which 
is of course first and foremost to their benefit, but also to 
the benefit of Medicare, from which those patients will 
eventually be receiving care.
    There is also a huge return to public investment in making 
sure that the data architecture is available to draw in data 
across silos. The biggest return to these AI algorithms is when 
you can bring together data from multiple insurers across 
health and nonhealth-care settings, to really figure out the 
care that patients need.
    That return is not realized by any individual data-
gathering insurer or employer, or even health-care researcher. 
There is a role for Federal policy in saying there is an 
enormous opportunity to do better for patients and provide 
higher-value care if we can bring all this information 
together.
    But that also then poses risks to patient privacy, 
confidentiality, and the risk of discrimination, and so those 
massive data sets need to be guarded by much more specific and 
transparent Federal regulation, to make sure that the data is 
used to the benefit of all patients, and that is not 
necessarily the world that we are in now.
    So, thank you very much for the opportunity to speak with 
you, and I look forward to answering any questions that I can.
    [The prepared statement of Dr. Baicker appears in the 
appendix.]
    The Chairman. Thank you, Dr. Baicker. We look forward to 
questions from our colleagues. Thank you all for coming.
    It is obviously a busy day, and I want to say to our 
guests, normally the chair asks the questions first, but in 
deference to my colleagues--because I have been at it basically 
for an hour or so--I am going to let all of the Senators ask 
their questions first, and next in order of appearance will be 
Senator Menendez.
    Senator Menendez. Thank you, Mr. Chairman.
    Dr. Obermeyer, there is a growing concern that algorithms 
may produce racial and gender disparities via the people 
building them or through the data used to train them. For 
example, health systems often rely on commercial prediction 
algorithms to identify and help patients with complex health 
needs.
    A study conducted by you and your team found evidence of 
racial bias in a widely used algorithm. Because this algorithm 
used ineffective proxies and falsely concluded that Black 
patients were healthier than equally sick White patients, Black 
patients were significantly less likely to be identified for 
extra care. As Congress considers appropriate payment and 
coverage policies for AI, we need to ensure that AI is not 
building upon biases in health research, and compounding health 
equity issues.
    What steps can policymakers take to ensure that AI can be 
used to improve health outcomes for underserved and 
underrepresented populations, rather than build on the current 
health disparities?
    Dr. Obermeyer. Thank you for asking, Senator. I think the 
two principles that I would say are important, that I believe 
Congress should enforce for algorithms that are being used on 
patients are, number one, transparency in the form of 
specificity.
    We should know exactly what algorithms are predicting. So, 
if an algorithm is predicting cost, it should say that very 
clearly. And I think that will be part of educating the market 
of health systems and others who use those algorithms, that if 
this is just predicting how much someone is going to cost, I 
probably should not use that to figure out how much health care 
somebody needs, because there are some people who are low-cost 
who face barriers to access and discrimination that has reduced 
that cost, who actually need more care than their costs would 
indicate.
    So transparency, in the form of clearly labeling what an 
algorithm outputs, is important.
    The second is that we need more accountability in the form 
of evaluating those algorithms in new data sets and by third 
parties, so that we do not have to take an algorithm 
developer's word that the algorithm is working well and 
equitably across groups.
    Senator Menendez. Thank you. Let me just stay with you for 
a moment. Lack of diversity in clinical trials--something I 
have been working on for quite some time here--creates gaps in 
our understanding of disease prevention and treatment across 
populations.
    Legislation like my bipartisan DIVERSE Trials Act seeks to 
improve access to and diversity in clinical drug and treatment 
trials, but more needs to be done. Now recently, some 
stakeholders have been using AI to increase diversity in 
clinical trials by pinpointing community centers where patients 
with certain cancers might seek treatment.
    That information helped lift the Black enrollment rate in 
five ongoing studies from roughly 4.8 percent to about 10 
percent. How can we support stakeholders looking to invest in 
AI to improve diversity and ensure medicines are representative 
of a broader population?
    Dr. Obermeyer. Thank you, Senator, for pointing out that AI 
can actually have huge returns in increasing diversity and 
equity in the science underlying medicine. I think finding the 
types of patients who do not typically get enrolled in trials 
today is a very important part of that, and I think, as 
Professor Baicker mentioned, linking data sets together to find 
those patients, to use AI to identify patients the doctors are 
currently missing for trial enrollment, has great promise for 
improving the diversity of the science on which clinical 
medicine is based.
    Senator Menendez. Well, thank you for that. We look forward 
to working with you and some of your colleagues.
    Mr. Shen, according to a recent study, there are fewer than 
20 AI medical services for which CMS reimburses today. The 
payment for those services--which include AI systems for 
cardiology, ophthalmology, and radiology--is inconsistent and 
varies widely.
    In 2023, most AI medical services had fewer than 1,000 
claims billed nationally. In short, the AI medical services 
that we have online today are just beginning to be widely 
accessed by patients. Would more consistent Medicare payments 
make these services more accessible for patients, and are there 
any other holes in the way CMS is currently reimbursing for 
Algorithm-Based Health-care Services?
    Mr. Shen. Yes; thank you for the question, Senator. So, 
while CMS has recognized the value and the complex nature of 
FDA-cleared AI solutions, the agency's reimbursement decisions 
have not been uniform or consistent in terms of ensuring 
appropriate levels of payment for those products.
    We support a solution that ensures a predictable and 
consistent approach by CMS, an approach that recognizes the 
cost of AI used in the clinical patient care and that 
reimburses with a temporary and separate payment for the 
distinct service clinical AI tools like Algorithm-Based Health-
care Services provide, which otherwise would be unavailable 
based on the qualitative and quantitative AI analysis that 
those solutions provide.
    More specifically, we advocate for CMS to implement a 
consistent and reliable payment policy for technologies and 
services that are first, FDA cleared; second, a covered benefit 
under Medicare; and third, that the service must provide a 
clinical output that supports the physician's decision-making.
    Furthermore, we encourage Congress to encourage CMS to 
formalize its existing Software as a Service policy, which 
would allow for separate and distinct payment for Algorithm-
Based Health-care Services with at least 5 years of consistent 
payment, while given a new technology payment assignment.
    We believe all of this will allow for better adoption of 
Algorithm-Based Health-care Services to help CMS collect more 
data to evaluate the overall value of AI to patients. We also 
believe that more data will demonstrate AI's ability to 
increase access to care and improve patient outcomes.
    Senator Menendez. Thank you, Mr. Chairman.
    The Chairman. I thank my colleague.
    Senator Cortez Masto?
    Senator Cortez Masto. Thank you. I want to thank the 
chairman, ranking member, and the panelists. This is a very 
timely and important discussion. If you have not been to CES, 
the Consumer Electronics Show in Nevada, I would welcome you 
there. Cutting-edge technology in this space that we are 
talking about right now in the use of AI, the impact it has to 
our patients, but also the health-care industry and access----
    But this is a concern for me: how do we overlay necessary 
regulation when it comes to AI, necessary regulation and guard 
rails for data privacy? Because I think that is all part of it 
when we are having this discussion. But one of the things that 
also comes up--and, Dr. Mello, I am going to ask you if you 
would address this, and any of the other panelists are welcome.
    I have been reviewing recent investigative news coverage of 
the use of AI and algorithms in limiting access to skilled 
nursing services. We have heard this happening in other post-
acute settings as well, like home health and rehab care. I 
share concerns expressed here today about Medicare Advantage 
plans' use of AI tools in prior authorization decisions.
    So, Dr. Mello, I appreciate you highlighting these issues 
with AI and health insurers in your testimony. As you note, CMS 
finally recently finalized a rule requiring Medicare Advantage 
plans to have a medical professional review in AI-assisted 
decisions.
    So my question to you--and I have two of them. And one is, 
in your view, is human review an adequate guard rail to 
ensuring plans are individualizing coverage decisions, and does 
the CMS rule provide enough oversight of the use of AI tools in 
coverage decisions? Those two questions. Thank you.
    Dr. Mello. Thank you for that important question. I think 
there are few alternatives to human review. So that is where we 
ought to focus. The question that interests me is, what does 
meaningful human review look like?
    Senator Cortez Masto. Right.
    Dr. Mello. As you may have heard, there was another insurer 
that used a non-AI-based algorithm to deny care. That did have 
human review, but the human review, on average, took 1.2 
seconds. And the CMS final rule currently does not include the 
level of specificity that would help plans understand what 
meaningful human review looks like.
    Senator Cortez Masto. Right.
    Dr. Mello. In order to enforce incentives to make it 
meaningful, the second point I would make is that audits by CMS 
need to look very closely, as I believe they intend to, at 
denials where algorithms were involved, to require transparency 
about when algorithms were involved and to really look at the 
patterns of denials and reversals.
    Senator Cortez Masto. Okay, and this goes to, I think, my 
colleague Senator Menendez, and I agree with this. As we are 
looking at AI tools and we are trying to address what we see 
may be discriminatory impacts of the data, our use of AI is 
only as successful as the data that we are relying on.
    If the data already has a bias for discrimination or the 
like, that is a concern. And for us--and this is why this is an 
important discussion--what role does Congress have to help 
regulate that, prevent that from happening? I am going to open 
this up to the panel to please weigh in.
    But let me just--I only have 2 minutes left here. Mr. Shen, 
let me talk to you about this issue as well. And Siemens--thank 
you very much--is in Nevada. I have been there. I so appreciate 
the work that Siemens does.
    A recent survey of health system executives found that, 
while many believe generative AI has the potential to reshape 
the industry, only 6 percent have established a generative AI 
strategy. It is surprising to me that we are talking about all 
of this, but the uptake is so low in the health sector.
    Maybe that is not a bad thing, as we are talking about the 
challenges we are facing right now. But there is also 
potential, positive, for AI to do really good work in this 
space. So I guess my question to you is, can we talk a little 
bit about Siemens' work to collaborate with physicians in 
developing these AI algorithms, and how has this partnership 
also impacted that adoption?
    And then finally, as we are having this discussion, 
protecting that data and the algorithms are only as good as 
they are clean and take out that internal bias. How are you 
addressing that?
    Mr. Shen. Yes, thank you for the question, Senator. 
Certainly, I think working with our clinical partners is very 
critical, not just in the development of our AI algorithms, but 
also in the adoption of those AI algorithms as well.
    So, from our perspective, we work closely with those 
clinicians to really identify what is the need that they have. 
What is the challenge that they have from a clinical standpoint 
that we should try to create that AI algorithm to help them 
address?
    And more importantly then is, what is the patient 
population that they are representing, so that the data that we 
use to train that AI algorithm is reflective of that patient 
population? And then, once we actually apply that AI algorithm 
into clinical practice, it is important that we facilitate the 
adoption.
    So what does that mean? That also means educating the 
clinician in terms of what is the intent of that AI algorithm. 
What was the purpose, as some of my colleagues have talked 
about here, of that AI algorithm? And then also to provide 
transparency as to why is that AI algorithm making the clinical 
decision or recommendation that it is making--so, giving that 
education to the clinician as to why that is happening.
    And finally, I think the other important aspect is that we 
work very closely with our clinical partners to gather feedback 
from them, to really understand how do we improve and continue 
to innovate that AI algorithm going forward? These are all 
critical steps where we believe we need to have a key 
partnership with the clinician.
    The Chairman. We are going to have to move on, Mr. Shen. 
Thank you.
    Senator Cortez Masto. Thank you, Mr. Chairman.
    The Chairman. We have a lot of our colleagues. I thank my 
colleague.
    Next is Senator Johnson.
    Senator Johnson. Thank you, Mr. Chairman.
    I have heard two witnesses mention the need for 
transparency, which I totally agree with. But I want to just 
tell a little anecdote about the lack of transparency in 
government.
    CDC/FDA has what they call FAERS and VAERS systems. Prior 
to Emergency Use Authorization of the COVID vaccine, the FDA/
CDC was touting the Vaccine Adverse Event Reporting system. You 
know, they are going to be watching this. They are going to 
survey it for safety signals. You lose a couple of days away 
from work, they are going to have a CDC representative call you 
and follow up on you. That was total BS.
    After the vaccine was rolled out and they did not like what 
VAERS was reporting, they started denigrating the VAERS system. 
They also created a standard operating procedure which talked 
about how they were going to analyze that data, first talking 
about proportional reporting ratios and then empirical Bayesian 
analysis.
    First, they denied actually conducting those analyses; then 
later we found out somebody said they actually had done it. So 
they agreed that, yes, they had actually done it. So I have 
been, for over a year, trying to get the information from CDC 
and FDA in terms of their empirical Bayesian analysis of the 
VAERS data.
    Now again, these are agencies that we fund, and we pay 
for--taxpayers. These are government employees we pay the 
salaries for. This is a standing operating procedure that they 
are going to do analysis on the VAERS system. They will not 
turn it over to me.
    So I just mention that in terms of anybody thinking, well, 
what we need to do is, we need to create AI and government 
regulations so that we ensure transparency. Nothing could be 
further from the truth. I am old enough to remember, before we 
started calling this AI in medicine, we talked about expert 
systems.
    I remember a PBS series one time or a report, and I was 
really surprised by the doctors they were questioning about 
expert systems. They were really opposed to them. It did not 
make sense to me. I thought, you know, why not? I remember Dr. 
Dean Edell was always talking about, when you hear hoof prints, 
think horses not zebras.
    Well you know, every now and again it is zebras, and an 
expert system, that kind of data, could potentially give you 
that information: drug interactions, that type of thing. I 
think during COVID--again, I have always been supportive of 
things like expert systems, AI systems having access to 
anonymized data. I think that is the real key: how do you 
anonymize this data so that researchers, a bunch of them, can? 
I think the danger of AI is central control, and the solution--
nobody knows exactly where this is going to go--is as much AI 
out there, you know, as many systems as possible kind of 
watching each other, trying to----
    The same thing goes with medical protocols. I mean, it 
makes an awful lot of sense to have basic medical protocols, 
but you also have to let doctors be doctors. You have to let 
them utilize the tool of an expert system or an AI, but then 
use their training and their medical system and be able to 
practice medicine, as opposed to having it dictated.
    I think one of the big problems in medicine today is, we do 
not have very many independent doctors now. They are all part 
of the system, and they all have to follow exactly what the 
system tells them to do. And of course that system does exactly 
what the Federal health agencies tell them to do, and the 
Federal health agencies are not transparent.
    We have a real problem. We have seen a real corruption of 
medical science research. It has been a corruption, with big 
pharma controlling all these things and relying everything on 
random controlled trials that only they can pay for, completely 
ignoring the use of other molecules of generic drugs because 
nobody wants to pay for that.
    So again, to me, the real benefit of AI with anonymized 
information--I think Epic Systems has a system. They are trying 
to do it, and there are clients that agreed to provide their 
data, anonymized. They can go then and do research. I mean, I 
think that is the kind of model we have to work toward.
    But I think the main question is, how do we allow that 
system to flourish, and how do we protect individual doctors, 
individual researchers, and not have them come under the 
control and under the thumb of the medical establishment that 
has been, I would say in many respects, corrupted by big 
pharma? Whoever wants to take the question. I'll go to Dr. 
Baicker.
    Dr. Baicker. Well, thank you. I think it is vitally 
important that there be transparency in how algorithms are 
deployed and in the data that feeds into them. There are some 
promising examples, I think, of public-private partnerships 
there. Where the cutting edge of aggregating and anonymizing 
data is, I think at this point--although I will turn to my 
colleagues who have expertise in this as well--is really 
sitting in the private sector in health systems, in nonprofits, 
in entities that have some degree of trust in being able to 
hold data that is anonymized, but merged, so that researchers 
can explore opportunities to find new cures, to find new 
pathways for patients, that takes the individual's identity 
away, but uses the full set of information.
    That is vitally important to getting those insights, that 
assurance that you are pointing to. We need assurance that 
algorithms are actually delivering the outcomes that we care 
about versus other outcomes that might be easier to find--and 
that they are representative of patient pools broadly across 
the country, not drawing just from one type of patient and 
applying the insights to other types of patients for whom they 
might do more harm than good.
    Senator Johnson. So just with my final time. So now we are 
talking, with AI, we are talking about observational data, 
which the Faucis of the world just denigrated, because only 
random controlled trials----
    So I mean, if we are going to really utilize this, we have 
to bolster, again, the value of observational trials. And we 
need a lot of people looking at the same data, and then have 
that data transparent. These trials, they are not making--even 
peer-reviewed, the reviewers do not get access to the data, and 
that is just wrong.
    The Chairman. I thank my colleague.
    Senator Bennet is next.
    Senator Bennet. Thank you, Mr. Chairman. I am grateful to 
you and the ranking member for holding this hearing and giving 
us a chance to ask questions. And thank you to the witnesses 
for being here today.
    I wanted to shift this, Dr. Baicker, in a slightly 
different direction than we have covered as I understand it 
today, and that is the issue of cost in artificial 
intelligence. It is hard to believe this, but we spend $4.5 
trillion, which is more than 17 percent of our economy, on 
health care.
    That is twice as much as any other industrialized country 
in the world, and I think it is worth asking--it is always 
worth asking what we are buying for that. Our life expectancy 
at birth is 3 years lower than other developed countries. We 
have the highest rate of infant and maternal deaths of any 
industrialized country in the world. We have among the lowest 
rate of practicing physicians.
    This is an incredible statistic, I think. We have among the 
lowest rates of practicing physicians when standardized for 
population size, and some of the lowest rates of per capita 
physician visits in the industrialized world as well. People 
are told that they should suffer the inconvenience of our 
system because it is easier for us to see a doctor in the 
United States, and that actually turns out not to be true. We 
have the inefficiency of this system that we have, plus nobody 
can get in to see a doctor.
    The same holds for patient hospital stays and the number of 
hospital beds. We are outperformed by other countries around 
the world, even if we are spending twice as much as they are on 
health care. We are spending enormous sums of money, I think, 
without seeing the results that the American people deserve.
    Not only is this bankrupting working families, it is adding 
billions of dollars to our national debt. Part of this is due 
to the administrative costs that are spread across our health-
care system. I think that is a big piece of that, and it seems 
to me that the careful deployment of AI tools that prioritize 
patients might help, and maybe this is an area where we could 
actually prioritize patients and not profits in the system. 
They could remove expensive intermediaries and reduce the 
paperwork burden--and create new efficiencies that could drive 
down costs.
    So, Dr. Baicker, I would ask you, how can AI tools address 
administrative expenses and reduce the costs we see in our 
health-care system, while improving patient cost of care?
    If there are other folks on the panel who would like to get 
into this conversation on administrative or any other aspects 
of the health-care system, please feel free. Thanks, Dr. 
Baicker.
    Dr. Baicker. Well, thank you so much for the opportunity to 
talk about this crucial issue you are raising, that the U.S. 
health-care system is not delivering the quality of care and 
outcomes for patients that we ought to expect, particularly 
given how much we are paying for it. I do think AI offers some 
opportunity to improve patient outcomes while slowing the 
growth of health-care spending by being sure that we are not 
providing unnecessary care that is potentially harmful to 
patients, and freeing up those resources to do all of the 
things that we need to for patients' health that we are not 
delivering consistently now.
    I think sometimes there is, in the public discourse, some 
conflation of high-value care and low-cost care. There is lots 
of care that is of very high value and very expensive that 
produces wonderful outcomes, or very high-value and low-expense 
that produces outcomes in a really cost-effective way.
    We want to target resources toward where they produce the 
most health, that mix of high-cost and low-cost care that is 
really appropriate for patients. AI can help us do that. But 
even more, I would like to see us move toward a system of 
paying for value rather than paying for the inputs into health 
care, and paying systems that produce better patient outcomes 
more, rather than just paying based on how many resources they 
use.
    AI can be part of that in that if AI helps a doctor, an 
insurer, a system, deliver better outcomes for patients at 
lower cost, that should be an advantage there, and we can pay 
for bundles of care that produce patient outcomes rather than 
each of the individual inputs.
    Senator Bennet. Is there anybody else who would like to 
take my last 30 seconds? Dr. Obermeyer?
    Dr. Obermeyer. Just one thing. Through my research and 
because of family, I spend a lot of time outside of the U.S., 
and there is actually nowhere I would rather get medical care 
than in this country.
    Now I am lucky, because I am a doctor. I am privileged in 
lots of ways. I can navigate the system in ways that others 
cannot. So I think AI has a lot of potential to help everybody, 
not just people like me, navigate that system.
    A lot of the administrative decisions, even something as 
simple as, you want to see a doctor; when should you see that 
person? How early? That looks like an administrative decision, 
but it is actually also a health decision, because it depends 
on that patient's health needs.
    So I think AI will be particularly powerful at that 
interface of these decisions on the back end of health care, 
like population health management, scheduling, et cetera, that 
are actually both administrative decisions and health 
decisions. AI can be very powerful there.
    Senator Bennet. Thank you. Thank you both, and thank you to 
the panel.
    Thank you, Mr. Chairman.
    The Chairman. Thank you, Senator Bennet. I would just say, 
the first thing Senator Bennet said--and he is always very 
informed on these issues--is also worth just a quick comment.
    He mentioned that we are spending $4.5 trillion a year on 
health care. And ever since I was director of the Gray 
Panthers, what we would do is divide the number of Americans 
into the collective spending. Today, far different than when I 
was coming up, $4.5 trillion divided by 330 million Americans 
means that what Senator Bennet was just saying, that if we 
wanted to do it--and this is not how we are approaching health 
policy--but if we wanted to do it, we could send every family 
of four in America a check for $50,000 and say ``good evening, 
happy to be here''--$50,000 for a family of four.
    So Senator Bennet, as usual, gets us off on the right 
track. I thank my colleague.
    Senator Young, welcome.
    Senator Young. Well, thank you, Mr. Chairman. I want to 
thank you and members of the Finance Committee staff. As the 
chairman knows, I have been working on artificial intelligence, 
trying to learn everything I can, working with Senators 
Schumer, Heinrich, and Rounds.
    We have held a number of forums on the topic. We have 
attempted to educate some of our colleagues on what adoption of 
AI technologies is going to mean for all various facets of 
life, from national security to labor market impacts to health 
care.
    And I have learned quite a lot, and the hope has always 
been that our committees of jurisdiction would sort of grab the 
bit and run with it, and the Finance Committee is out front 
here. So, thank you to our witnesses for helping us sort 
through this issue.
    I would agree with Dr. Baicker. You know, I have heard a 
lot of commentary about the productivity improvements, but also 
the health and wellness improvements we might realize, and 
perhaps we will actually be able to bend the proverbial cost 
curve down in health care. We have tried seemingly everything 
else in Washington, so maybe innovators and entrepreneurs and 
investors can help us get there.
    So I will begin with some questions for Mr. Shen, please. 
Mr. Shen, on issues of workforce, the Federal workforce, are 
there existing gaps in the CMS workforce and expertise that may 
create choke points to the access or the use of AI within the 
health-care context?
    Mr. Shen. Thank you for the question, Senator. Certainly, I 
think CMS has recognized the value and the complex nature of 
FDA-cleared AI solutions, but the agency's reimbursement 
decisions have not been uniform and consistent to ensure 
appropriate levels of payment for these products.
    I think what we are advocating for here is to ensure some 
sort of predictability and consistency as an approach from CMS, 
an approach that recognizes really the cost of AI and how it is 
benefiting the clinical patient here, and these different 
clinical AI tools that are providing both quantitative and 
qualitative information for that physician to better help the 
patient.
    We see an opportunity here to actually create a temporary 
and separate payment for the distinct service that these 
clinical AI tools are providing, that would otherwise be 
unavailable for the physician. And specifically what this 
committee can do is really to advocate CMS to implement this 
consistent and reliable payment policy for these FDA-cleared 
solutions that we have that are affecting clinical AI.
    Senator Young. Thank you. Thanks for the actionable 
recommendation.
    How can Congress--as it relates to maintaining our 
competitiveness, how can Congress support continued innovation, 
responsible use of AI, as well as continuing to assess the 
future risk? Relatedly, how can we partner with industry to 
advance these goals?
    Mr. Shen. Yes, that is a great question, Senator, and thank 
you for that. So what we see as a real key component for 
innovation is adoption, and we believe that the adoption of 
these new and emerging technologies like artificial 
intelligence will fuel innovation, innovation here in the U.S., 
innovation by technology companies like ourselves, to be able 
to continue to push the forefront around artificial 
intelligence.
    So a key component again here is really driving adoption. 
So, enabling providers to be able to embrace this technology 
without any uncertainty in terms of making the investment in 
this technology, and by encouraging adoption, that is going to 
fuel innovation going forward.
    Senator Young. Thank you.
    One elementary sort of piece of information about 
artificial intelligence which I learned early on is to think 
about the technology. There are three elements. There are 
computers, that is processing power; there are those who 
actually train models, so talent; and then there is data.
    You need a lot of data oftentimes to train these models. 
You of course need appropriate and clean data. Innovation is 
rapidly changing what is possible, and data sharing can help 
leverage advancement of these AI tools. How do we balance 
necessary data sharing with protection of the individual 
patient data, and protection of large data sets?
    Mr. Shen. Yes; another great question, Senator. I think it 
is very important that the data sets that are being utilized to 
train these AI algorithms are inclusive and reflective of the 
patient population that the AI is going to be applied toward, 
and that is a key component here--so, making sure that the data 
that is being utilized here is focused on the patient 
population that it is serving.
    Senator Young. That is great. Thank you.
    The Chairman. I thank my colleague. We have four Senators 
here, and obviously noon is really the deadline. So, we can get 
everybody in, and we will. Let's see--Senator Carper is next, 
followed by, at this point, Senator Cardin, Senator Blackburn, 
and Senator Thune. And if other Senators come, we will figure 
out how to deal with that.
    Okay; Senator Carper?
    Senator Carper. Thanks Mr. Chairman. Good morning, 
everyone. Thank you for spending your time with us today. Thank 
you for your work in what is really an increasingly important 
issue. We have gotten our heads around it. There is a lot of 
potential here, also some real pitfalls if we are not careful.
    So, I want to ask some questions. One of them deals with 
the workforce and the responsible deployment of our workforce. 
Strengthening the health-care workforce is an issue of key 
concern to me, and I know it is to Democrat and Republican 
colleagues.
    I consistently hear from providers back in Delaware and 
other places too, and from health-care systems, that recruiting 
and retaining a health-care workforce is the number one issue 
that our health-care system faces.
    In fact, I go home almost every night to Delaware. When we 
are not in session, I cover my State. I call them customer 
calls, sometimes to health-care places like the hospitals and 
all, but all kinds of places, businesses large and small.
    And I ask three questions when I do these customer calls. I 
say, how are you doing, the business? How are we doing, the 
congressional delegation, Congress and State Government and so 
forth? And what can we do to help you? What we hear most, 
almost from everyone is, we need people who will come to work, 
people who are trained, people who are trainable and can help 
us do the work that we are doing.
    But I think with the growing use of AI in health care, it 
is important that this technology be deployed in, I will just 
say a responsible way that bolsters our workforce, while 
improving the patient experiences and hopefully outcomes.
    We have heard that AI has been referred to as a copilot. I 
am a naval flight officer, a retired Navy Captain. I spent a 
lot of time in airplanes, but we hear AI referred to as a 
copilot. And as we learn of the ways that AI can support our 
health-care system, we must ensure that our health-care 
providers remain the pilot--not the copilot, but the pilot of 
these incredibly powerful tools.
    My staff, in fact my colleagues, oftentimes hear me say 
``find out what works; do more of that.'' Find out what works; 
do more of that. We have seen health-care leaders successfully 
deploy AI tools, including the health-care systems in Delaware 
and other places, in a way that has improved patient outcomes 
and mitigated provider burden.
    Dr. Sendak, what best practices should we consider on this 
committee to ensure responsible deployment of provider-led AI?
    Dr. Sendak. Thank you for the question. So I will comment 
on kind of two extremes that I have seen. In my testimony, I 
refer to what I have been able to be a part of at Duke, which 
is really an exemplary organization investing in the technical 
capabilities. We have engineers, data scientists, data 
engineers. We manage projects. We are funded by the health 
system.
    That works. That works to develop, to implement, to monitor 
AI solutions. That is not scalable. That is not an investment 
that every organization can or should make. So, when we started 
Health AI Partnership back in 2021, we were focused on 
education.
    We thought, let us create the best content that we think we 
can build, put it out there for free, and build relationships 
with organizations so that they are aware of it and they can 
adopt it. So, our original scope was curriculum development.
    I think we put out some really great content. We 
interviewed close to 90 people across health-care 
organizations. We identified eight key decision points along 
the AI product life cycle. We put out guides to do 31 discrete 
tasks.
    What I quickly realized is, education is only relevant if 
you have people who can take it, people who have time, people 
who have the foundational knowledge to go through that training 
and then bring that back to their organizations. And so, while 
the content is great, we found that we needed to go deeper.
    That is why one of my main recommendations in my testimony 
that I will go back to is technical assistance. So, a program 
that we are going to be launching soon we are calling the 
Practice Network. That is based on other models across the 
country of kind of hub-and-spoke support, where you have a 
Center of Excellence that provides specialized support to low-
resource settings. I referenced Regional Extension Centers.
    So, I think if you are asking to find out what works, do 
more of that, we have seen exemplary examples of this. I will 
name Project Echo out of New Mexico that now is used for many 
different medical conditions. We started to do that type of 
hub-and-spoke model for AI, and it cannot just be content.
    Senator Carper. All right. I think my time has expired. I 
have some more questions, but I will submit those for the 
record.
    The Chairman. I thank my colleague.
    Senator Cardin is next.
    Senator Cardin. Thank you, Mr. Chairman. I also want to 
thank you for holding this hearing, and I thank the leadership 
for really getting us all engaged in AI.
    I thought Senator Young's comment about all of us trying to 
understand AI and then having our committees try to take 
appropriate actions in order to have the guard rails that are 
necessary as we deploy AI--that seems to be the general 
consensus here. We are all struggling as to how to implement 
that.
    So, Dr. Obermeyer, let me start with you first, because I 
was listening to your response to Senator Menendez's points on 
the equities, and there are many issues involved in AI and 
medical care.
    We hear about designing AI to protect privacy. We hear 
about designing AI in order to protect security. But I do not 
hear much about designing AI to protect equity for the 
underserved communities. So, if we are interested in making 
sure that we really use AI in a fair manner for all 
populations, how do we incorporate that in the design?
    Dr. Obermeyer. That is a really great question, and I would 
say that most of my work has actually tried to answer it. I 
think one observation is, AI is just data. It learns from the 
data that you give it, and we always feed data into AI that 
reflects the past, the way our medical system looks today and 
the way it has looked. That is how AI learns.
    Unfortunately, if AI learns to basically replicate our 
current system, it is going to replicate all of the 
inequalities in our current system. And so, if AI predicts who 
doctors should see by looking at who doctors have seen in the 
past, that is going to incorporate all of the biases that 
reflect the barriers that people face getting into the health-
care system.
    So, when we design AI, when I think about designing AI in 
my research and my applied work, I try to think about how we 
get AI to reflect the patient's health, not a doctor's opinion. 
So, if we can actually design AI to predict objective 
biomedical outcomes that a patient is going to experience and 
feed those predictions back to a doctor in a way that helps the 
doctor say this person is at low risk and does not need a 
defibrillator to be implanted in their heart, this patient is 
at high risk and does need a defibrillator to be implanted on 
the basis of a lot of data that that doctor cannot process, 
that is a lot better than asking an algorithm to predict who 
gets defibrillators today, and let's just keep doing that.
    So, designing for equity means designing algorithms that 
look at patients and represent their health conditions in an 
accurate way and see the individuality of the patient, not just 
replicating all of the biased and flawed decisions that are 
currently being made in our health-care system.
    Senator Cardin. And who sets those guidelines or parameters 
to ensure that the design systems incorporate that?
    Dr. Obermeyer. I think one of the challenges is that every 
AI is a snowflake. There are so many different uses, and that 
is good. We want a lot of innovation. But the problem is, it 
means we cannot set one guideline for all of AI.
    So that is why we need, first, a lot of transparency, so 
that everybody can look at the AI and see, okay, what is it 
predicting? Is it predicting a good thing or a bad thing, and 
let me make that judgment. The second thing we need is for that 
algorithm to be subjected to rigorous evaluation, and so we 
need that algorithm to be tested in data that it has never seen 
before.
    We need to see how it is performing not just overall, but 
in Black versus White patients, urban versus rural, all of 
these axes of inequality that we currently have in our health 
system, to make sure that the algorithm is not just performing 
well overall, but it is performing well for everyone.
    Senator Cardin. Dr. Sendak, if I could follow up on a 
similar concern on equity, and that is that we have a digital 
divide. We have challenges with accessibility for underserved 
communities generally with health care, but also our safety net 
providers do not necessarily have the same capacity.
    So how do we build into the system that AI will be really 
accessible, particularly in underserved communities?
    Dr. Sendak. And I want to just build off Dr. Obermeyer's 
comments. I want to emphasize that even when we went out, and 
in our interviews we asked 10 organizations how do you assess 
for equity in algorithms, we got different responses. So, we 
have tried to start to do that consensus-building, but it will 
take investment to build those capabilities.
    And so to your point, low-resource settings--and I 
mentioned this in my testimony--today, they are not on the AI 
adoption highway. Guard rails do not help them, because they 
are struggling to operate efficiently at baseline.
    So that is where I want to keep pointing to prior Federal 
programs where we made infrastructure investments in 
procurement of new digital platforms to enable care to be 
delivered with EHRs. We invested in technical assistance 
programs.
    So that is how we are going to reach those communities--and 
just going back to getting it out of the ivory tower in those 
settings.
    Senator Cardin. Thank you.
    Thank you, Mr. Chairman.
    The Chairman. I thank my colleague.
    Next is Senator Blackburn.
    Senator Blackburn. Thank you, Mr. Chairman. Thank you to 
each of you for being here.
    I had a great roundtable last Friday with health-care 
innovators in Nashville, and of course we've got great work 
that is being done in health IT there, a lot of AI that is 
being done. HCA, one of our hospital corporations, has really 
deployed so many AI tools to help with clinical decision 
support, nurse handoff, documentation, things of that nature.
    One thing that came up was CMS and the reimbursement 
framework. And, Mr. Shen, I do want to come to you on this, and 
I know it has been brought up before.
    There are deficiencies, there are discrepancies. You have 
coding that calls for this, this, and this, and then over here 
you have this new technology. So this came up at the 
roundtable. So, talk to me a little bit--let us drill down a 
bit more on these deficiencies and these gaps, and how can CMS 
move forward and fix that, so that patients have the access to 
the best possible----
    Mr. Shen. Yes, I really appreciate that question, Senator. 
I think you have identified the issue spot-on here. With CMS, 
we are seeing inconsistencies and an inconsistent message in 
terms of how do we appropriately reimburse for these AI 
technologies.
    From a practical standpoint, what we are advocating for 
here is kind of a predictable and consistent approach that is 
really focused on clinical AI solutions. So these are really 
Algorithm-Based Health-care Services that are providing both 
quantitative and qualitative clinical information to the 
physician, so that he or she can be----
    Senator Blackburn. Should CMS be more prescriptive in how 
this gets handed back to them for reimbursement?
    Mr. Shen. Yes. I think that what is plausible here is that 
there are pathways that are already in place. There is 
infrastructure already in place within CMS----
    Senator Blackburn. So it is our job here at the Finance 
Committee to tighten this up?
    Mr. Shen. To really push them, yes, in terms of 
consistency. I am really advocating now for reimbursement for, 
again, these FDA-cleared clinical solutions that are already 
covered under Medicare.
    Senator Blackburn. Okay; all right.
    Then, Dr. Mello, same type thing on regulation. When you 
look at the regulatory frameworks and the balance that needs to 
be there to establish those standards, talk to me about how 
this keeps up with that evolving landscape?
    Dr. Mello. So, I think what your question raises, Senator, 
is, how do we get this balance between innovation and patient 
protection right? And I think the critical step that CMS and 
other agencies--and Congress--could take at this stage is to 
convene experts in the field to begin to establish consensus-
based standards about how algorithms need to perform, and about 
how the people who use them need to plan for their deployment.
    So, CMS could do this, for example, as part of Medicare 
conditions of participation. I think that would be a terrific 
way to get the attention of health-care organizations that are 
using AI tools but not planning for them in the way that they 
should, and not monitoring them.
    Senator Blackburn. Dr. Baicker, you talked some in your 
testimony about AI's potential to overhaul health care payment 
systems, and as we look at value-based payment models, we are 
there with you on that. It does not matter if it's blockchain, 
if it is AI, but achieving that potential----
    So how do you envision policymakers really harnessing AI 
effectively to refine these payment systems?
    Dr. Baicker. Well, I think there are two mechanisms that 
might be low-hanging fruit in that way. One is that we do not 
really pay for improving, avoiding future health risk.
    Right now, if an insurer does a great job at reducing the 
likelihood of future heart attacks, there is really very little 
payment associated with that. So there is a real barrier to 
investing in that kind of care. AI can generate markers of 
future health risk that we do not currently have----
    Senator Blackburn. The predictive diagnoses?
    Dr. Baicker [continuing]. Then we can pay for it, once we 
have a better marker. So that is one mechanism. Another is in 
sort of smoothing the way that we deliver care now. We can 
actually reimburse the quality of care that patients are 
getting today in a much more nuanced way, drawing on the data 
that we can now process with AI.
    All of these data sets have existed before, but it was very 
hard to boil them down into something you can use.
    Senator Blackburn. My time has expired. Thank you.
    The Chairman. I thank my colleague.
    Next is Senator Whitehouse.
    Senator Whitehouse. Thanks, Mr. Chairman.
    One of the unfortunate things about these hearings is we 
have a really terrific panel of experts on a really complex 
subject, and 5 minutes. So the questions that I will ask, 
unless somebody has an immediate response, I would like to have 
each of you take for the record, so you have a chance to 
deliberate a bit, think about it, and get back to me.
    I represent Rhode Island. Rhode Island has several health-
care enterprises that we are very proud of. One is what is 
perhaps the best all-payer claims data base in the country, and 
with that array of data information there is obviously a role 
for AI in trying to plow through it and seek out either 
anomalies or associations that might not be immediately 
apparent.
    I would be interested in--question one: is there any advice 
that you would have with regard to maximizing the utility of a 
robust all-payer claims data base? So that would be question 
one.
    Question two is, are you working in the development of AI 
with some of the medical specialty groups--orthopedics, 
cardiologists--and do you think they are a useful place for 
either benchmarking or approval or somehow accrediting best AI 
practices? And if they are, do you have any good examples of a 
medical specialty association that is being particularly 
forward and helpful at looking for the best uses of AI within 
the specialty? So that would be question two.
    The third question has to do with ACOs. Rhode Island has 
two unusually good Accountable Care Organizations. One is 
Integra, and the other is Coastal Medical. They are national 
leaders in terms of quality plus savings, and they have done 
really, really, really well.
    I would be very interested in your thoughts on ways in 
which artificial intelligence could be used to support the ACO 
program. To me, the ACO program is one of the most exciting 
things happening in medicine right now, just the effect that it 
has on incentives, and the way it opens up a medical practice 
to see the value in nontraditional interventions that will 
actually help the payment and save money but would never have 
been reimbursable under a traditional pay, fee-for-service 
system.
    So it is in that area, I think, that there is an enormous 
opportunity. ACOs can be very big, but they can also be pretty 
small. And I think the best ones, at least in my experience, 
have been provider groups that have not tried to pull together 
too many different interests and struggle through the 
conflicting interests, but just to be a good ACO provider group 
providing primary care.
    So, if you could focus your responses a little bit on that 
type of ACO, a primary care provider ACO, and what I should be 
looking for or encouraging or trying to support, so that we can 
continue to advance the ACO model as we try to redesign health 
care.
    I have 2 minutes and 30 seconds left, so if anybody wants 
to jump in and use that 2 minutes and 30 seconds on any one of 
these. Okay, go ahead, but these are questions for all of you, 
and I would be really grateful if you would take a moment when 
this is over and send a written response to me. Go ahead.
    Dr. Sendak. So I will bucket the last two, and I will speak 
now from the perspective of Duke. So many of the initial use 
cases of AI that we were involved in, in terms of projects that 
implemented AI, were within the ACO population.
    And to your point, that was a unique environment where 
prevention of complications that you could build algorithms to 
predict actually generated----
    Senator Whitehouse. Revenue.
    Dr. Sendak. Revenue.
    Senator Whitehouse. Yes. It is a beautiful thing----
    Dr. Sendak [continuing]. And facilitated the investment in 
the technical infrastructure, in the clinical expertise 
required to prevent those complications.
    So, to loop in your second question about specialties, 
every year our team at Duke DIHI runs an innovation competition 
where we ask people, okay, bring us your problems and we will 
help you identify solutions that we can implement.
    So, what is very, very common is that specialists come to 
us. It could be an ophthalmologist with diabetic retinopathy. 
It could be a vascular surgeon with peripheral artery disease. 
It has been a nephrologist for chronic kidney disease.
    They come to us, and they say, hey, I see all of these 
complications from chronic illness. If the primary care doc did 
x, y, and z, we could have prevented this. So everyone always 
points upstream to that primary care doc. So what we have done 
across multiple chronic conditions is build algorithms that 
prevent that complication that the specialist has to take care 
of.
    We developed a workflow called Population Rounding, where 
that specialist actually reviews high-risk cases that are 
identified by algorithms, and then they collaborate with 
primary care docs to send them recommendations that the primary 
care docs intervene on, and generate revenue for the ACO.
    The ACO pays for that specialist's time to do the case 
reviews, and they pay for the technology. That has been 
sustained now for 8-plus years for multiple conditions at Duke.
    The Chairman. The time of the gentleman has expired.
    Senator Whitehouse. Well, that is really interesting, 
because one of the problems that we face with the ACOs is that 
they are heavily leveraged. Coastal at one point told me that 
the primary care doctors at Coastal Medical controlled, I think 
he said, 13 percent of the care of patients.
    But the ACO calculation was responsible for 100 percent, 
with the rest being pharmaceuticals, specialists, hospitals, 
and other things. So the more we can integrate specialists and 
primary care into that ACO model so it is little bit more like 
a general contractor thing----
    I would be really interested in following up, and my time 
has expired.
    The Chairman. I thank my colleague, and I did not mean to 
interrupt. We are trying to deal with our clock.
    Let's see. Senator Cassidy is next, and then we will have 
Senator Warner and Senator Warren.
    Senator Cassidy. If I ask questions and say things that you 
have already answered, I have just been running and dodging 
protestors. So the question is, how do we regulate this? And I 
have had three options presented to me, and I would like your 
kind of take on it--or maybe four.
    One, have AI validate AI. And someone says, you've got to 
be kidding me. AI cannot validate AI because it depends upon 
making sure that they have the same data sets upon which they 
are trained and are equally robust.
    Second, let's do what we did with the Sherman Antitrust 
Act. Just give the Court some sort of barriers, guidelines. 
Okay, courts, you have to stay within this. We cannot imagine 
what is going to happen in 100 years; courts, figure it out. 
But then someone said, you've got to be kidding me. You have to 
understand something before you can have a court ruling, and 
you think some judge is going to understand this?
    It was a lawyer who told me that. I am a 
gastroenterologist, so I am just going to take his kind of 
minimization of the judge's ability to comprehend.
    The third is to say, if we are talking about health care, 
to go, for example, to the American College of Cardiology and 
say we want you to be the third party that will validate that 
everything out here is going to be okay for a cardiology 
patient.
    Now, since a cardiology patient with congestive heart 
failure can have kidney disease and can have diabetes and 
hypertension and be at risk of stroke--and by the way, be HIV 
positive--it almost seems like you end up with the whole 
shebang, even though you think you are going to limit it.
    But actually, that is the one that seems most valid to me, 
because you actually have subject matter expertise kind of 
penetrating there. Now, I have given you that context. Clearly, 
I am meditating on this before I go to bed. Let's start with 
you, Dr. Baicker, and then just work down, and please be tight 
with your answers.
    Dr. Baicker. Thank you. I think it is crucially important 
that humans be involved in validating the outcomes, but I hope 
that there is an opportunity for public-private partnership, 
and also for consortia of private entities, to have multiple 
views on the same data set in different contexts and have 
consensus across them, in which algorithms are actually 
achieving the goals that they say that they are achieving.
    Senator Cassidy. Practically, that seems like that is going 
to be incredibly cumbersome, and this seems like a really agile 
field that is going to race ahead.
    Dr. Baicker. But that is why I think having a fixed 
structure is less likely to be agile than having multiple 
parties able to weigh in on whether the outcome is successful.
    Senator Cassidy. Now some of this is proprietary, so would 
that kind of defeat it if it is proprietary?
    Dr. Baicker. I think there needs to be a regulation that 
ensures access to the outcomes and to the crucial inputs of the 
data, so that third parties can see what is happening.
    Senator Cassidy. Okay.
    Dr. Obermeyer?
    Dr. Obermeyer. I think there is a nice analogy to how the 
FDA regulates drugs. When we regulate drugs, the FDA requires 
that the manufacturer specify the primary outcome--what is the 
health thing that this drug is affecting--and it requires them 
to show that the drug affects that outcome in a rigorous way, 
usually via randomized trial.
    With algorithms, I think we should know what the algorithm 
is predicting, and then I think we should rigorously evaluate 
how that algorithm is doing its job in a new data set that it 
has never seen before, which is a key part of how machine 
learning gets evaluated everywhere. I think that that----
    Senator Cassidy. Now that would presuppose, though, that 
every time you update it, you have to do retesting.
    Dr. Obermeyer. So I think that there are ways to put in 
structures for continuous monitoring so it only requires the 
algorithm to produce its----
    Senator Cassidy. I am running out of time.
    Dr. Mello?
    Dr. Mello. I think we have learned that there are models 
that can usefully evaluate some aspects of other models. For 
example, the developers at Stanford released a model called 
APLUS that evaluates algorithmic bias as an open source tool. 
That is great.
    But there are so many other aspects of safe and responsible 
use of AI that do require human review. I think physicians can 
be very helpful in spotting issues that will happen when 
physicians interact with those tools. But generally, I do not 
think medical professional societies are fully up to the task 
of vetting some of the issues that arise.
    Senator Cassidy. Then who would be?
    Dr. Mello. I think you are talking about creating what we 
might call assurance labs, that bring together data scientists 
with emphasis----
    Senator Cassidy. Okay.
    Dr. Sendak?
    Dr. Sendak. In silico testing in a third-party validation 
environment is necessary but not sufficient. And you know as a 
practicing physician, different environments are different. 
Every health-care organization needs to be able to locally 
govern AI, and that means----
    Senator Cassidy. That seems impossible.
    Dr. Sendak [continuing]. They locally govern quality of 
care and health-care services----
    Senator Cassidy. I am going to tell you, the small little 
rural hospital isn't going to do it.
    Mr. Shen?
    Mr. Shen. Yes. I think, Senator, it is very important here 
to really distinguish between FDA-regulated AI and other types 
of AI like generative AI. I think FDA-regulated AI, again, goes 
through a regulatory approval process with the FDA where we 
have to declare the intent of these AI algorithms and what is 
the clinical use----
    Senator Cassidy. Like clinical support. For example, how do 
you deal with a heart failure patient?
    Mr. Shen. Exactly. So that framework actually is sufficient 
to support AI innovation, and we can support kind of this 
continued flexibility in that approval process to look at how 
clinical AI can be adopted going forward.
    Senator Cassidy. Thank you. I yield.
    The Chairman. I thank my colleague. We can get both of our 
remaining Senators in before the noon deadline.
    Senator Warner. Thank you, Mr. Chairman. Thank you all for 
joining us.
    I just want to follow up with Senator Cassidy. Bill? I just 
want to say one of the things I think we have to grapple with 
as well is intent, you know? I sit on the Banking Committee, 
where we are seeing AI tools that might have this notion of 
``go make money,'' but then use illicit or illegal ways to do 
that.
    I think there is a question around intent, maybe to have an 
AI tool that deals with heart disease, but if you do not have 
all these other inputs, it could be a challenge.
    Dr. Sendak, I want to start with you. I am very interested 
in your work on developing model disclosures for AI. But I 
worry--I was a tech guy 20 years before I got into this 
business--that there is such a first-mover advantage, and if we 
do not get that disclosure form right--and I know you have 
talked about using even maybe the nutrition guide tools.
    But so, on this kind of model--I think it is an interesting 
model. You have it going, at least in your testimony I think, 
to clinical end users. But I do not think you weigh in on 
whether actually consumers should be getting the same kind of 
disclosure. And then, how do we make sure that it is actually 
intelligent, if you do think it--or is there a concern with 
giving it to the actual patients themselves?
    Dr. Sendak. It is great to see that people actually read 
papers, because when you write them, sometimes it is like, is 
anyone going to read this besides your mom?
    Senator Warner. In full disclosure, I have staff that have 
read everything you have all said. I got the photo op, though. 
[Laughter.]
    Dr. Sendak. So I want to touch on a few things. You talked 
about first-mover advantage and the concern with disclosing 
what is proprietary information. I want to emphasize that--I 
put this in the testimony--we have incubated four companies.
    There are companies that have licensed the algorithms that 
we have built that they are now commercializing. They are 
validating them in other settings, and these algorithms all 
have model facts labels in our publications. So there is a 
balance between disclosing information about an algorithm and 
retaining what is needed for commercial rights, to be able to 
commercialize products.
    And then the second point is, who is this for? And I want 
to emphasize there too, we built that document that you showed 
for a specific use case, which is for my clinicians, so that 
they know how these systems work.
    That is not the set of information that an organizational 
governance body needs to be examining to make a procurement 
decision. That is not the information that a governance 
committee needs to look at maybe a few times a year, to 
reconfirm use or look at monitoring. So there is a set of 
artifacts that need to be developed at different points in 
time.
    Senator Warner. But again, you talked about the clinical 
end users. You did not talk about the notion of, should there 
be some form of this that goes to the patient, and how do we 
use Medicare as a forcing mechanism to give some level of 
standardization to a level that even a clinical end user may 
not understand, let alone an actual patient.
    Dr. Sendak. The only example I am aware of of a public AI 
inventory by a health-care provider is the VA. We are working 
through Health AI Partnership to build what we are calling the 
Community Transparency Registry, where we are going to do one 
use case--and we will use Duke as an example--where we 
interview community members, do focus groups, solicit concerns 
and questions, and develop documentation for the public.
    I will say, that is a huge gap. It does not exist today, 
and it should be part of----
    Senator Warner. I want to get my last question in, and 
Senator Warren's been very patient. So, Dr. Mello, I just--in 
your testimony, you talked about automation bias, how we are 
not going to default to thinking the AI model is always right.
    Again, I am interested in how we use Medicare as a tool, 
and potentially even, I think we do have to raise--I mean, as 
Senator Cassidy said, you know--some level of liability issues. 
And I know lots of folks have already talked about bias and 
hallucination.
    I just want to talk to that a little bit more, in terms of 
how we deal with this automation bias.
    Dr. Mello. Well, I think creating standards--for example, 
Medicare conditions of participation that require organizations 
to have given hard evaluation to how the humans interact with 
the model under the constraints and incentives that they have 
within that organization--is going to be the key to that.
    Senator Warner. Last, and I just asked this, and I would 
love to get feedback so I can get--you do not have to answer 
it. I am chair of the Intel Committee, and Senator Wyden is a 
current member of that committee.
    We spend a lot of time on cyber. There is a whole new way 
around AI tools, with prompt inquiry and others, that do not 
really fit neatly into the bucket of cyber, but there are ways 
that we can manipulate these models in a huge way. I would 
welcome your input on how we do that.
    Thank you, Mr. Chairman.
    The Chairman. I thank my colleague, and I am also 
interested in that last question of Senator Warner's.
    Okay; Senator Warren?
    Senator Warren. All right; thank you.
    So, over 31 million Americans are enrolled in Medicare 
Advantage, or MA, the program that allows private for-profit 
insurers to offer Medicare coverage. Now, under Federal law, 
these private insurers are required to cover all Medicare Part 
A and Part B services.
    But in recent years, government watchdogs have found that 
private insurers are routinely delaying and denying care 
because doing so boosts their profits. In 2019, the Health and 
Human Services Inspector General found that nearly one in five 
payment denials by insurers in MA violated Medicare coverage 
rules, meaning seniors were unlawfully denied access to 
services that they were, by law, entitled to.
    Some of the largest insurers that offer MA are now relying 
on flawed artificial intelligence tools like predictive 
algorithms to scale up their efforts to deny coverage to 
seniors. These algorithms sift through millions of medical 
records to determine the level of patient need that the 
algorithm thinks they need.
    So, Professor Mello, you are an expert on AI and health 
policy. Let us start with an easy question. Does Federal law 
require all insurance companies to follow Medicare coverage 
guidelines, even if they are using AI algorithms to determine 
coverage?
    Dr. Mello. Yes.
    Senator Warren. Yes. So the law is not suspended just 
because you used AI. I just want to underscore that, because it 
is clear that these companies are not playing by the rules. So, 
take UnitedHealthcare, which covers more beneficiaries in MA 
than any other insurance company.
    In 2020, UnitedHealthcare bought NaviHealth, a company that 
sells its AI services to insurance companies in order to help 
them make these coverage decisions. Last year, an investigation 
revealed that UnitedHealthcare had pressured employees to 
strictly follow NaviHealth's algorithm determinations, leading 
these human beings to systematically deny care at skilled 
nursing facilities, even when those decisions were against 
doctor's orders.
    Dr. Obermeyer, you have conducted extensive research on how 
algorithms are used in health care. Can you talk just a little 
bit about the dangers that come from solely relying on AI 
algorithms to make these coverage decisions?
    Dr. Obermeyer. In the case you mentioned, like in all other 
cases, AI learns from historical data. So, it trawls through 
those millions of records and it sees, for example, that there 
are some privileged people with great insurance who probably 
stay in nursing homes for longer than they should, and there 
are also vulnerable underinsured people who are often kicked 
out too early.
    Rather than undoing that problem, the AI reinforces it and 
encodes it as policy, and I think that is very contrary to the 
spirit of medical utilization review. It is also a huge missed 
opportunity, because I think well-designed AI could do much 
better.
    It could look at the patient's X-ray; it could look at the 
public transportation in their neighborhood; it could look at 
the layout of their house, and integrate all those things into 
a far better judgment than a doctor is able to make about who 
needs to be in that nursing home and who does not.
    Senator Warren. So it is a really important point that you 
make about how it takes the bad information and accelerates--or 
the information that tells us about bad practices. You know, 
according to the investigation from the Inspector General, for 
some seniors, these AI denials led to ``amputations, fast-
spreading cancers, and other devastating diagnoses.''
    I appreciate that CMS has now finalized a rule to increase 
transparency requirements on insurers' AI systems and require 
doctors to verify coverage decisions. But I think we need a lot 
more to protect patients here. So, if I could come back to you, 
Professor Mello.
    In addition to the rule that the agency has just finalized, 
what measures do you think that CMS should take to ensure that 
private insurers are not leveraging AI tools to unlawfully deny 
care?
    Dr. Mello. Thank you for the question. I think it is really 
important to look to see whether they are given the incentives 
involved, and I was very heartened to see in the FAQs released 
this week on that final rule, CMS plans to beef up its audits 
in 2024 and specifically look at these denials. That seems 
extremely important.
    But beyond that, I think additional clarification is needed 
to the plans about what it means to use algorithms properly or 
improperly. For example, for electronic health records, it did 
not just say ``make meaningful use of those records''; it laid 
out standards for what meaningful use was.
    Senator Warren. So I think the point here is, we need guard 
rails, and without significant guard rails in place, these 
algorithms, as you put it, Dr. Obermeyer, are going to 
accelerate the problems that we've got and pad private 
insurers' profits, which gives them even more incentive to use 
AI in this way.
    Until CMS can verify that AI algorithms reliably adhere to 
Medicare coverage standards by law, then my view on this is, 
CMS should prohibit insurance companies from using them in 
their MA plans for coverage decisions. They have to prove they 
work before they put them in place. Thank you.
    Thank you, Mr. Chairman.
    The Chairman. I thank my colleague, and I think Senator 
Warren's points are very important. And the reality is, not 
only do we have jurisdiction here, but what is striking--and I 
have always thought this since my Gray Panther days--is that 
Medicare is the flagship program in America, and when Medicare 
does something, everybody in the private sector picks up on it.
    So these are very important questions, and I appreciate 
Senator Warren asking them. She focused on Medicare. I am going 
to use the word that has not come up over the last 2\1/2\ 
hours, and that is Medicaid. And so here is where we are.
    We know Medicaid is a lifeline for millions of the most 
vulnerable people in the country, and how Medicaid determines 
eligibility, or the amount of a benefit, is of critical 
importance. Millions of families and children count on the 
program for affordable health care.
    Increasingly, the States are using algorithms to determine 
eligibility and benefit-level determinations instead of trained 
employees, certainly a prospect for distressing outcomes. For 
example, Tammy Dobbs, an Arkansas woman living with cerebral 
palsy, had her home care hours suddenly cut by 40 percent after 
an algorithm was used to redetermine her benefit allotment, 
leaving her in a state of confusion and panic.
    So we have a lot to do to make sure that we shore up the 
rules to protect people in these health-care plans, because 
they are particularly vulnerable. And in addition to the 
States, I would like to address a question to you, Dr. Mello, 
and you, Dr. Obermeyer, about insurance company discrimination 
in Medicaid managed care plans.
    We are staying on the subject of Medicaid as we wrap up, 
because those are the folks who are most vulnerable. And 
something strikes me as fundamentally unfair--and we have been 
at it for close to 2\1/2\ hours--and it never has come up.
    So the committee is doing our own investigation into these 
Medicaid managed care plans, and our investigation includes 
these issues with respect to insurance company processes that 
can harm people on Medicaid.
    So, Dr. Mello and Dr. Obermeyer, you have some of the best 
investigators on the planet sitting right behind me here at the 
dais. What would you tell them they ought to be looking at, in 
order to protect Medicaid patients, through our inquiry, our 
investigation that will incorporate these AI issues? What would 
you tell them to be looking for?
    Dr. Mello. Well, first, thank you so much for undertaking 
that critically important work. I am even more concerned about 
those beneficiaries than I am about Medicare beneficiaries, 
because we know, for a variety of reasons----
    The Chairman. Three cheers for you.
    Dr. Mello. Thank you. They have difficulty challenging 
those decisions. So, the number one piece of advice I would 
give is, do not look at grievance appeal and overturn rates as 
a good indicator of humans in the loop correcting errors, 
because even if we see--as we have with some other health plans 
in Medicare Advantage--90 percent overturn rates of these 
initially mistaken algorithmic decisions, this group of 
enrollees does not appeal in force. Again, they just simply do 
not have the social capital to do that.
    So, second, I think we want to get a handle on which 
algorithms are being used and for what purpose; and then third, 
really look under the hood at the kinds of incentives and 
constraints the front-line reviewers have, the amount of power 
they actually have to overturn those decisions, by talking with 
them, confidentially, if possible, about, again, what will 
happen to them if they say ``no.''
    The Chairman. The staff was writing very quickly, so you 
connected.
    Dr. Obermeyer?
    Dr. Obermeyer. I want to draw attention to one key 
difference between Medicare and Medicaid that I think really 
hurts our ability to understand both the promises and the 
pitfalls of AI for Medicaid, which is that unlike Medicare, 
there is no one place you can go to look for data. You have to 
pool all of the data together from individual States, and for 
researchers, that is actually really, really difficult, and it 
prevents people from doing the kind of work that I think is 
really needed, that I have done around auditing these 
algorithms.
    All that said, I think Medicaid--like everywhere else, we 
have the same problems of a lot of people who are currently 
ineligible but who are ineligible, and in the people who are 
covered, there is fraud and abuse. I think AI has a lot of 
potential to fix both of those problems.
    I have seen social workers in the ER struggle to understand 
who is eligible and who is not. I think there is a huge 
opportunity for using AI to better structure the eligibility 
decisions. I also think there is a huge opportunity to use AI 
to identify exactly those abuses that are happening in these 
Medicaid managed care plans.
    All of that requires access to the data and the ability to 
do that work.
    The Chairman. We have been at it a long time. You all have 
been wonderfully patient. This has been a superb hearing. Not a 
bad point or frankly, from my colleagues, not a bad question in 
the house, and we have a lot to do.
    I will just close by way of saying that one of the other 
aspects of this that the Senate staff is going to have to get 
its arms around is, this is very different than what we were 
tackling in the 1990s, when we were talking about platforms and 
things like that.
    You know today, we are generating a lot of content, and we 
need really strong guard rails. Those really strong guard rails 
are just fundamental, and as we kind of march into this kind of 
new era, we are going to have to have good counsel from all of 
you. And also, you are going to get some questions for the 
record. They are due by 5 p.m. on February 15th.
    But we want to thank you all, and I look forward to seeing 
you some time soon, Dr. Mello, on the Stanford campus. I have 
lots of friends, and you may have run into one of my 
classmates, Dr. Linda Shortliffe, who taught at the Stanford 
Medical School--and a lot of other friends.
    So, I appreciate all of you, and with that, we are 
adjourned.
    [Whereupon, at 12:11 p.m., the hearing was concluded.]

                            A P P E N D I X

              Additional Material Submitted for the Record

                              ----------                              


            Prepared Statement of Katherine Baicker, Ph.D., 
                     Provost, University of Chicago
        harnessing the opportunities of artificial intelligence 
                  to transform the health-care system
    My name is Katherine Baicker, and I am provost of the University of 
Chicago and a health economics researcher. I would like to thank 
Senator Wyden, Senator Crapo, and the distinguished members of the 
committee for giving me the opportunity to speak today about artificial 
intelligence and health care. I serve on a number of boards and 
advisory panels but am presenting only my own views. This statement 
draws on several pieces I have written in this area, as well as 
research conducted by many others, including some on this panel.

    AI holds enormous promise to improve not only the delivery of care, 
but the effectiveness and sustainability of the health-care system.\1\ 
In addition to improving the quality of care for individual patients, 
AI can also help us refine the way we pay for health care, focusing 
resources on patients who would benefit the most. Traditional economics 
would suggest that payments for health care are the key driver of 
utilization and value. But it is clear that more nuanced tools are 
needed. AI tools can improve both clinical decision-making and health 
care financing.
---------------------------------------------------------------------------
    \1\ I focus here primarily on the use of predictive AI, though of 
course there are many opportunities and challenges with the emerging 
use of generative AI.

    Of course, AI's promise will only be realized with sufficient 
large-scale investments and with safeguards to mitigate potential 
risks. For patient care, AI provides a set of tools to better determine 
the best course of treatment--but, like other tools, they require 
rigorous testing in relevant context to judge their utility. For the 
health-care system, AI provides a potentially transformational avenue 
to support sustainable investment in long-term population health--but 
requires public policy guard rails to ensure that all patients can 
benefit.
AI Tools to Improve Decision-Making and Quality
    Improving the quality of care that patients receive is not just 
about increasing access to new and existing therapies. There is ample 
evidence that our health-care system has both overuse and underuse of 
care, leading to worse patient outcomes and unnecessary financial 
strain. AI tools can help clinicians do better--not just do more or do 
less. A recent study, for example, deployed a machine learning 
algorithm to examine how doctors test for acute coronary syndromes 
(ACS) in the emergency department (ED), and found both overtesting of 
patients with very low risk (who were extremely unlikely to benefit 
from the test) and undertesting of patients at high risk (for whom the 
test would have had high potential to avert severe harms to health).\2\ 
Reallocating low-value tests to high-risk untested patients could save 
lives and be extremely cost-effective across a range of care.\3\ A 
study of CT pulmonary angiography in national ED visits found similarly 
large-scale overuse and underuse.\4\ Another study showed that 
variation in radiologists' diagnostic skill drove over- and 
underdiagnosis of pneumonia.\5\
---------------------------------------------------------------------------
    \2\ Mullainathan S, Obermeyer Z. Diagnosing Physician Error: A 
Machine Learning Approach to Low-Value Health Care. Quarterly Journal 
of Economics. 2022;137(2):1-51.
    \3\ Baicker, K and Obermeyer, Z. Overuse and Underuse of Health 
Care: New Insights from Economics and Machine Learning, JAMA Health 
Forum, 3(2), February 17, 2022.
    \4\ Abaluck J, Agha L, Kabrhel C, Raja A, Venkatesh A. The 
Determinants of Productivity in Medical Testing: Intensity and 
Allocation of Care. American Economic Review. 2016;106(12):
3730-3764.
    \5\ Chan DC, Gentzkow M, Yu C. Selection with Variation in 
Diagnostic Skill: Evidence from Radiologists. The Quarterly Journal of 
Economics. Vol. 137 no. 2, 2022.

    AI offers the opportunity to draw in much more information than 
physicians alone can. In the study of ACS above, researchers found that 
physicians often focus on a small number of salient variables. Machine 
learning algorithms can use a much broader set of information to 
capture the richness of individual patients' histories and conditions. 
Much of the opportunity lies in bringing together multiple types of 
data and being able to merge data across silos. Public policy is 
important here, both because there are limited private incentives to 
collect and share data that might improve care and because there are 
real and serious risks to patient privacy and data security. The right 
information infrastructure with safeguards can not only enable the 
generation of algorithms to assist clinicians in delivering the right 
care to their patients but can accelerate discovery of new treatments 
---------------------------------------------------------------------------
and modes of care.

    But algorithms must supplement, not replace, physicians in care 
decisions. Physicians can draw in information that algorithms alone 
can't, including the results of real-time patient exams.\6\ It is 
crucial that algorithms be tested and validated in relevant contexts, 
just like any other medical intervention.\7\ The way that information 
is presented to physicians and integrated into the clinical flow is 
crucial to improving patient care. And the value that the tools 
generate should be assessed in terms of real-world improvements in 
patient outcomes and the efficiency of the resources used. Similarly, 
algorithms can perpetuate biases present in the care patterns captured 
in the data used to train the algorithm.\8\ Interrogating the context 
from which the new information is drawn and the setting in which it 
will be deployed is crucial to ensuring that incorporating the 
information benefits all patients.
---------------------------------------------------------------------------
    \6\ Agarwal, Moehring, Rajpurkar, and Salz. Combining Human 
Expertise with Artificial Intelligence: Experimental Evidence from 
Radiology. NBER Working Paper No. 31422, July 2023.
    \7\ Shah, Halamka, et al. A Nationwide Network of Health AI 
Assurance Laboratories. JAMA. 2024;331(3):245-249.
    \8\ Obermeyer, Powers, Vogeli, and Mullainathan. Dissecting racial 
bias in an algorithm used to manage the health of populations. Science. 
Vol. 366, Issue 6464, pp. 447-453, October 2019.
---------------------------------------------------------------------------
Improving Delivery and Access at Scale
    In addition to improving the quality of care, AI can also help us 
refine the way we pay for health care, focusing resources on patients 
who would benefit the most. Economics suggests that payments for health 
care are the key driver of overuse and underuse--that we see overuse 
when we pay too much, and underuse when we pay too little. But the fact 
that we often see both overuse and underuse in the same payment system 
indicates that more nuanced tools are needed. Aligning payments with 
the health value that they produce for patients can foster higher-value 
use of care and minimize spending on care of questionable benefit.\9\ 
AI can enhance our ability to design and implement value-based 
insurance and innovative payment systems.\10\, \11\
---------------------------------------------------------------------------
    \9\ Baicker, Mullainathan, and Schwartzstein. Behavioral Hazard in 
Health Insurance, The Quarterly Journal of Economics (2015), 1623-1667.
    \10\ Chernew, Rosen, and Fendrick. Value-Based Insurance Design. 
Health Affairs, 26 (2007), w195-w203.
    \11\ Baicker, Chernew. Alternative Alternative Payment Models, JAMA 
Internal Medicine, Vol. 177, no. 2, pp 222-223, February 1, 2017.

    Of course, coverage of high-value treatments does not necessarily 
reduce spending. Some treatments, such as childhood immunization and 
counseling adults about low-dose aspirin to prevent coronary heart 
disease, may improve health and save money; but most high-value 
treatments that are highly cost-effective still increase spending.\12\ 
AI can improve our ability to target treatments to the patients who are 
most likely to benefit from them, allowing coverage of more treatments 
while promoting affordability of premiums and sustainability of public 
programs.\13\ Using predictive AI to help identify the patients with 
the greatest likely benefits can also be a tool to better target 
insurance coverage expansions.\14\
---------------------------------------------------------------------------
    \12\ Neumann PJ, Cohen JT. Cost savings and cost-effectiveness of 
clinical preventive care. Synth Proj Res Synth Rep. 2009;(18):48508.
    \13\ Baicker, Chandra. Uncomfortable Arithmetic--Whom to Cover 
Versus What to Cover, New England Journal of Medicine, 10.1056/
nejmp0911074, Vol. 362, no. 2, 95-97, January 14, 2010.
    \14\ Goto, Inoue, Osawa, Baicker, Fleming, Tsugawa. Machine 
Learning Detects Heterogeneous Effects of Medicaid Coverage on 
Depression, American Journal of Epidemiology, forthcoming.

    Improving individual patient care and affordability is in itself of 
enormous benefit, but AI also opens up new opportunities at broader 
scale, unlocking potential innovation in population health 
management.\15\ In our system, payment for care through insurance 
coverage is a key driver of health care innovation. Insurance plans 
have latitude about what care they cover, subject to regulation. 
Enrollees exert some pressure to cover care that they value, but they 
may not be able to discern the generosity or quality of coverage until 
they are sick and need specialized care, and the health benefits of 
preventive care or disease management may not be evident for many 
years--which may make plans with less coverage and commensurately lower 
premiums more appealing, affecting health as well as costs.\16\ 
Similarly, employers choosing which plans to offer employees are less 
likely to internalize the benefits of long-term health because of 
employee turnover, reducing the incentives to offer plans that invest 
in care that may only generate improved health (and potentially lower 
costs) many years later.
---------------------------------------------------------------------------
    \15\ Baicker, Chandra. Investing in Long-Term Health, JAMA Health 
Forum, February 2024.
    \16\ Brot-Goldberg ZC, Chandra A, Handel BR, Kolstad JT. What does 
a deductible do? The impact of cost-sharing on health care prices, 
quantities, and spending dynamics. The Quarterly Journal of Economics. 
2017; 132 (3): 1261-1318.

    AI offers a new way to counteract this disconnect by using better 
predictions to incentivize coverage of care that improves patient 
outcomes in the long run. Machine learning applied to data spanning 
imaging, bloodwork, longitudinal health care use, diagnoses, and more 
can provide much better information about how future health risks and 
health-care needs are likely to evolve at the individual and population 
levels. This information can be used to shape payments to insurers, 
paying more to those who improve future health prospects for their 
enrollees and less to those who don't. ``Risk adjustment'' is already a 
vital mechanism for mitigating insurers' incentives to enroll only the 
healthiest patients. Similarly, AI-informed risk adjustment applied to 
the outcomes that matter most for patients could mitigate insurers' 
incentives to limit coverage of treatments with short-term costs and 
long-term health benefits, as well as provide additional information 
about the quality of care.\17\ This would improve access to beneficial 
care and also foster medical innovation. The absence of better real-
time measures of health risk improvement has hindered the development 
of novel disease management, for example. The development of new health 
markers through machine learning could unlock new markets for disease 
management--and thus new modes of addressing serious chronic health 
conditions.
---------------------------------------------------------------------------
    \17\ Obermeyer, Powers, Vogeli, and Mullainathan. Op cit.

    Predictive AI thus offers much promise at the individual and system 
level to drive medical innovation, increase the quality of care, and 
improve patient outcomes--and do so in a way that maintains access and 
affordability through a focus on high-value use. But that potential 
hinges on investment in shared data infrastructure and, crucially, on 
the development of systems of patient protections and algorithm testing 
and validation that engender trust and ensure broad and equitable 
---------------------------------------------------------------------------
patient benefits.

    I thank you again for this opportunity and look forward to 
answering any questions you may have.

                                 ______
                                 
     Questions Submitted for the Record to Katherine Baicker, Ph.D.
               Question Submitted by Hon. Maria Cantwell
    Question. One of the few sectors where we've successfully 
implemented meaningful privacy protections is health care, with the 
enactment of the Health Insurance Portability and Accountability Act 
(HIPAA). As we continue struggling to bring effective privacy 
protections to consumers in all sectors of the economy, I'm concerned 
that with AI in health care we may move backwards in terms of privacy. 
As we know, AI runs on data--lots of data. And the most valuable data 
that exists is health-care data. The financial incentive to train AI 
models on sensitive health data is enormous, but we must also be aware 
of accidental abuses. For example, we know that Large Language Models 
tend to ``leak'' data--including the data they are trained on, as well 
as data they process during normal use. These mistakes, whether 
intentional or not, could have enormous consequences for certain 
people, such as people who travel to another State to get abortions, or 
those who use menstrual cycle tracker apps that collect sensitive 
health data. The leaked data could potentially be used to prosecute 
these patients who are just trying to get reproductive care. That's a 
critical issue in Washington State, where the number of out-of-state 
patients seeking abortion care increased by 46 percent in 2022. We 
should not be compromising the safety of technology users just so AI 
can collect data and improve algorithms.

    What threats does AI pose to privacy in the health-care sector and 
how often does data get accidentally leaked? How can we improve 
parameters on data security so that laws like HIPAA can be updated to 
meet the security requirements in the age of artificial intelligence?

    Answer. Fostering responsible use of broad databases has the 
potential to meaningfully improve patient outcomes, as AI tools can 
draw on much more information than physicians alone can. Machine 
learning algorithms can use a much broader set of information to 
capture the richness of individual patients' histories and conditions 
and supplement (but not replace) physician decision-making. Much of the 
opportunity lies in bringing together multiple types of data and being 
able to merge data across silos, but there are limited private 
incentives to collect and share data that might improve care. The right 
information infrastructure can not only enable the generation of 
algorithms to assist clinicians in delivering the right care to their 
patients, but can accelerate discovery of new treatments and modes of 
care.

    To achieve these benefits, it is crucial that algorithms be tested 
and validated in relevant contexts. The way that information is 
presented to physicians and integrated into the clinical flow is a 
crucial determinant of effectiveness, and the value that the tools 
generate should be assessed in terms of real-world improvements in 
patient outcomes. The development of systems of patient protections and 
algorithm testing and validation standards that engender trust and 
ensure broad and equitable patient benefits is vital.

                                 ______
                                 
             Questions Submitted by Hon. Sheldon Whitehouse
    Question. Rhode Island has several health-care enterprises that we 
are very proud of, including the State-wide Rhode Island All-Payer 
Claims Database (RI APCD).

    What role can AI play with regard to maximizing the utility of a 
robust, All-Payer Claims Database?

    Answer. In addition to improving the quality of care, AI can also 
help us refine the way we pay for health care, focusing resources on 
patients who would benefit the most. The fact that we often see both 
overuse and underuse in the same payment system indicates that more 
nuanced tools are needed. Aligning payments with the health value that 
they produce for patients can foster use of care with high patient 
health benefits while minimizing spending on care that does little to 
improve health. AI can enhance our ability to design and implement 
value-based insurance and innovative payment systems, promoting 
affordability of premiums and sustainability of public programs. 
Transparency for both patients and providers can amplify the 
effectiveness of value-based payments and insurance design. Using 
predictive AI to help identify the patients with the greatest likely 
benefits can also be a tool to better target insurance coverage 
expansions. Robust databases are key enablers of unlocking this value.

    Question. Are you working in the development of AI with some of the 
medical specialty organizations (orthopedics, cardiologists, etc.)? Are 
specialty organizations a useful place for benchmarking, approval, or 
accrediting best AI practices? And if they are, do you have any good 
examples of a medical specialty association that is being particularly 
forward and helpful at looking for the best uses of AI within the 
specialty?

    Rhode Island has two, unusually good Accountable Care Organizations 
(ACOs). In what ways could artificial intelligence be used to support 
the ACO program?

    Answer. Predictive AI offers much promise at the individual and 
system level to drive medical innovation, increase the quality of care, 
and improve patient outcomes. There is, however, a demonstrated risk 
that algorithms can perpetuate biases present in the care patterns 
captured in the data used to train the algorithm. Interrogating the 
context from which the new information is drawn and the setting in 
which it will be deployed is crucial to ensuring that incorporating the 
information benefits all patients.

    Improving the quality of care that patients receive is not just 
about increasing access to existing therapies. Payment for care through 
insurance coverage is a key driver of health-care innovation and the 
creation of new therapies. The absence of better real-time measures of 
health risk improvement has hindered the development of novel disease 
management, for example. AI-informed risk adjustment applied to the 
outcomes that matter most for patients could mitigate insurers' 
incentives to limit coverage of treatments with short-term costs and 
long-term health benefits, as well as provide additional information 
about the quality of care. This would improve access to beneficial care 
and also foster medical innovation. The development of new health 
markers through machine learning could unlock new markets for disease 
management--and thus new modes of addressing serious chronic health 
conditions through ACOs or other structures, particularly for 
underserved populations. I myself am not currently working with any 
medical specialty organizations.

                                 ______
                                 
                Prepared Statement of Hon. Mike Crapo, 
                       a U.S. Senator From Idaho
    Artificial intelligence, or AI, offers seemingly endless 
applications and opportunities for every sector of American society, 
including health care. From disease detection and diagnosis to advanced 
imaging, hundreds of AI-enabled devices have come to market in recent 
years, providing critical tools for front-line clinicians. AI can also 
streamline and simplify taxing administrative tasks, which continue to 
pull providers away from patient care, imposing high costs and eroding 
outcomes.

    Every week, new breakthroughs in AI technology come to light, 
presenting countless use-cases to drive health-care improvements, from 
more efficient drug discovery to more informed clinical decisions.

    At the same time, as with any emerging technology, AI also raises 
new questions and risks. Responsible and ethical deployment--with 
appropriate safeguards for privacy and security--will prove crucial to 
building patient trust and ensuring effective results.

    As we weigh the promise of AI in the health-care context, our 
committee will play a critical role, given our jurisdiction over a 
range of Federal health programs.

    Today's hearing will help us to strike a patient-centered and 
fiscally responsible approach to AI-enabled tools within these and 
other Federal programs. Rather than legislate first and ask questions 
later, Congress needs to build a better understanding of how AI 
operates in specific contexts, including health care. Our witnesses 
will identify areas where current policies can adapt effectively, as 
well as where they fall short. These discussions can lend valuable 
insights into the real-world promise of innovation for patients, along 
with the importance of reliability, transparency, and adaptability--
especially as policymakers navigate a rapidly changing landscape.

    As game-changing AI-enabled devices and other technologies emerge, 
Medicare coverage and payment policies must keep pace. Otherwise, 
access gaps for seniors will widen, care quality will suffer, and the 
innovation pipeline will shrink.

    I look forward to engaging with our witnesses, as well as my 
colleagues in both chambers, to ensure we address the regulatory 
hurdles and pervasive uncertainty that too often confront older 
Americans and those living with disabilities. Our Federal programs 
should expedite, rather than undermine, access to medical 
breakthroughs, including those enabled by AI.

    In order to build trust in high-quality innovations, we also need 
appropriately targeted oversight and analysis, which can help to inform 
future policy initiatives. In the case of algorithms applied to 
expedite utilization management, for instance, improper denials or 
delays of needed services warrant government scrutiny. In other 
contexts, AI-related challenges stem largely from insufficient provider 
experience or education with cutting-edge tools.

    In the latter case, rather than rely on a top-down approach, 
Federal agencies should leverage expertise, both in-house and external, 
to scale up outreach and technical assistance, particularly for lower-
resource providers and sites, including in rural areas. Collaborative 
public-private partnerships have the potential to drive responsible 
deployment across the country while generating vital data and promoting 
robust privacy protections for patients.

    Beneficiary trust and clinician uptake will demand a transparent, 
but also risk-based, approach to the use of AI-assisted tools, tailored 
to the vast differences among diverse technologies and use-cases. Along 
these lines, AI highlights the need for adaptability. One-size-fits-
all, overly rigid, and unduly bureaucratic laws and regulations risk 
stifling lifesaving advances and becoming outdated before they are even 
codified. Only with a sector-specific approach, focused squarely on our 
jurisdiction--and informed by experts and stakeholders from across the 
field--can we pursue responsible and responsive policies that improve 
access, enhance care quality, and reduce care costs.

    Thank you to our witnesses for being here today. I look forward to 
your testimony.

                                 ______
                                 
        Prepared Statement of Michelle M. Mello, JD, Ph.D.,\1\ 
        Professor of Health Policy and Law, Stanford University
---------------------------------------------------------------------------
    \1\ Professor of health policy, Department of Health Policy, 
Stanford University School of Medicine; professor of law, Stanford Law 
School; affiliate faculty, Stanford Institute for Human-
Centered Artificial Intelligence; institute faculty, Freeman Spogli 
Institute for International Studies, Stanford University.
---------------------------------------------------------------------------
      facilitating responsible governance of health-care ai tools
    Chairman Wyden, Ranking Member Crapo, and members of the committee, 
thank you for the opportunity to speak with you today.

    I have the extraordinary privilege of being part of a group of 
ethicists, data scientists, and physicians at Stanford University--long 
a leading hub of AI innovation--that is directly involved in governing 
how health-care AI tools are used in patient care. I have studied 
patient safety, health care quality regulation, and data ethics for 
more than 2 decades. I apply that expertise in our team's evaluations 
of all AI tools proposed for use in Stanford Health-Care facilities, 
which care for over 1 million patients per year, and our 
recommendations about whether and how they can be used safely and 
effectively.

    I would like to share the three most important things we've learned 
so far.

    First, while hospitals are starting to recognize the need to vet AI 
tools before use, most health-care organizations don't have robust 
review processes yet. Some, like Stanford, have plentiful resources to 
drawn on; others don't. All need help. Although as a lawyer I know that 
more law isn't always the answer, in this case there is much that 
Congress could do to help.

    Second, to be effective, governance can't focus only on the 
algorithm. It must also encompass how the algorithm is integrated into 
clinical workflow. By ``workflow,'' I mean how physicians, nurses, and 
other staff interact with each other, the AI tool, the patient, and 
other systems. Currently, conversations about regulating health-care AI 
mostly focus on the AI tool itself--for example, is its output biased? 
How often does it make wrong predictions or misclassify things?

    These things matter. But it is equally important to consider how 
medical professionals will interact with the tool. A key area of 
inquiry is the expectations placed on physicians and nurses to evaluate 
whether AI output is accurate for a given patient, given the 
information readily at hand and the time they will realistically have. 
For example, large-language models like ChatGPT are employed to compose 
summaries of clinic visits and doctors' and nurses' notes, and to draft 
replies to patients' emails. Developers trust that doctors and nurses 
will carefully edit those drafts before they're submitted--but will 
they? Research on human-computer interactions shows that humans are 
prone to automation bias: we tend to overrely on computerized decision 
support tools and fail to catch errors and intervene where we 
should.\2\
---------------------------------------------------------------------------
    \2\ Mello MM, Guha N. Understanding liability risk from using 
healthcare artificial intelligence tools. N Engl J Med. 
2024;390(3):271-278. Full text available from the author (mmello@law.
stanford.edu).

    Therefore, regulation and governance should address not only the 
algorithm, but also how the adopting organization will use and monitor 
it. To take a simple analogy, if we want to avoid motor vehicle 
accidents, we can't just set design standards for cars. Road safety 
features, driver's licensing requirements, and rules of the road all 
---------------------------------------------------------------------------
play important roles in keeping people safe.

    Third, because the success of AI tools depends on the adopting 
organization's ability to support them through vetting and monitoring, 
the Federal Government should establish standards for organizational 
readiness and responsibility to use health-care AI tools, as well as 
for the tools themselves. As countless historical examples of medical 
innovations have shown, having good intentions isn't enough to protect 
against harm. The community needs some guard rails and guidance.

    I believe there is a right and a wrong way to do this. It would be 
a mistake to enshrine in legislation detailed standards for health-care 
AI tools and how they can be used. In light of how quickly things are 
moving in the field, we have to have the humility to acknowledge that 
we don't know what the best standards will be 2 years from now. 
Regulation needs to be adaptable or else it will risk irrelevance--or 
worse, chilling innovation without producing any countervailing 
benefits. The wisest course now is for the Federal Government to foster 
a consensus-building process that brings experts together to create 
national consensus standards and processes for evaluating proposed uses 
of AI tools.

    It can also begin requiring that entities regulated by Federal 
agencies adhere to those standards and processes. Through its operation 
of and certification processes for Medicare, Medicaid, the Veterans 
Affairs Health System, and other health programs, Congress and Federal 
agencies can require that participating hospitals and clinics have a 
process for vetting any AI tool that affects patient care before 
deployment and a plan for monitoring it afterwards. As an analogue, the 
Centers for Medicare and Medicaid Services (CMS) uses The Joint 
Commission, an independent, not-for-profit organization, to inspect 
health-care facilities for purposes of certifying their compliance with 
the Medicare Conditions of Participation. The Joint Commission recently 
developed a voluntary certification standard for the Responsible Use of 
Health Data which focuses on how patient data will be used to develop 
algorithms and pursue other projects. A similar certification could be 
developed for facilities' use of AI tools.

    The initiative currently underway to create a network of ``AI 
assurance labs,'' \3\ and consensus-building collaboratives like the 
1,400-member Coalition for Health AI, can be pivotal supports for these 
facilities. Such initiatives can develop consensus standards, provide 
technical resources, and perform certain evaluations of AI models, like 
bias assessments, for organizations that don't have the resources to do 
it themselves. Adequate funding will be crucial to their success.
---------------------------------------------------------------------------
    \3\ Shah NH, Halamka JD, Saria S, et al. A nationwide network of 
health AI assurance laboratories. JAMA. 2024;331(3):245-249.

    It's important to recognize that some aspects of AI review will 
need to be done locally, as individual health-care organizations are 
best positioned to identify and address problems that could result from 
how they embed AI tools within clinical workflow.\4\ Here, too, 
regulatory requirements can ensure that organizations invest in making 
it happen--just as the Federal regulations known as ``the Common Rule'' 
did for ethical review of human subjects research.
---------------------------------------------------------------------------
    \4\ Mello MM, Shah NH, Char DS. President Biden's executive order 
on artificial intelligence--implications for health care organizations. 
JAMA. 2024;331(7):17-18.

    We have developed such a review process at Stanford. For each AI 
tool proposed for deployment in Stanford hospitals, data scientists 
evaluate the model for bias and clinical utility. Ethicists interview 
patients, clinical care providers, and AI tool developers to learn what 
matters to them and what they're worried about.\4\ We find that with 
just a small investment of effort, we can spot potential risks, 
mismatched expectations, and questionable assumptions that we and the 
AI designers hadn't thought about. In some cases, our recommendations 
may halt deployment; in others, they strengthen planning for 
deployment. We designed this process to be scalable and exportable to 
---------------------------------------------------------------------------
other organizations.

    I will close with one final point from other research I have 
conducted on AI: don't forget health insurers. Just as with health-care 
organizations, real patient harm can result when insurers use 
algorithms to make coverage decisions. For instance, members of 
Congress have expressed concern about Medicare Advantage plans' use of 
an algorithm marketed by NaviHealth in prior-authorization decisions 
for post-hospital care for older adults. In theory, human reviewers 
were making the final calls while merely factoring in the algorithm 
output; in reality, they had little discretion to overrule the 
algorithm. This is another illustration of why humans' responses to 
model output--their incentives and constraints--merit oversight.

    CMS recently took the important step of addressing these practices 
through a Final Rule requiring Medicare Advantage plans to make medical 
necessity determinations ``based on the circumstances of the specific 
individual . . . as opposed to using an algorithm or software that 
doesn't account for an individual's circumstances.'' The final rule 
further specifies that determinations must be reviewed by a medical 
professional. But ambiguity remains around what it means to merely 
``use'' algorithms, as opposed to allowing them to drive decisions; and 
what it means to ``account for'' individual circumstances or to have 
algorithm results ``reviewed by'' a human.\5\ How much freedom must 
human reviewers have to overrule algorithm recommendations? Must 
algorithms include information on social determinants of health or 
patients' social supports to ``account for'' individual circumstances? 
Must insurers disclose the prediction algorithm? Additional clarity 
about regulators' expectations would be very helpful.
---------------------------------------------------------------------------
    \5\ Mello MM, Rose S. Denial--artificial intelligence tools and 
health insurance coverage decisions. JAMA Health Forum (forthcoming; 
available from the author (mmello@law.stanford.edu)).

    In summary, Congress can support health-care organizations and 
health insurers navigating the uncharted territory of AI tools by 
imposing some guard rails while allowing the rules to evolve with the 
---------------------------------------------------------------------------
technology. Specifically, Congress should:

        1.  Require that health-care organizations have robust 
        processes for determining whether planned uses of AI tools meet 
        certain standards, including undergoing ethical review.

        2.  Fund a network of AI assurance labs to develop consensus-
        based standards and ensure that lower-resourced health-care 
        organizations have access to necessary expertise and 
        infrastructure to evaluate AI tools.

        3.  Require developers of AI tools to disclose information that 
        a consensus-based organization such as an assurance lab 
        determines is essential to evaluating the safety and ethics of 
        AI tools.

        4.  Work with CMS to provide further guidance to Medicare 
        Advantage plans about permissible and impermissible uses of 
        algorithms in coverage decisions.

        5.  Ensure that relevant Federal agencies, including but not 
        limited to CMS, the Department of Veterans Affairs, and the 
        Food and Drug Administration, have clear grants of authority to 
        adopt standards for all types of health-care AI and require 
        entities within their purview to adhere to them. Clarity and 
        specificity are essential here, because courts are increasingly 
        holding that on matters of vast social and economic 
        significance like AI, Congress must speak clearly when it 
        intends to give authority to agencies.

    Thank you, and I welcome your questions.

                                 ______
                                 
   Questions Submitted for the Record to Michelle M. Mello, JD, Ph.D.
                 Questions Submitted by Hon. Ron Wyden
    Question. Several recent reports have highlighted that more people 
are being denied care with the help of Artificial Intelligence (AI) 
tools. For people who buy their own health insurance--and are not 
provided coverage through their employer--one in five in-network claims 
were denied. The Health and Human Services Inspector General found 
similarly high denial rates in Medicaid managed care plans.

    Do you think one of the reasons for these high denial rates is 
because AI or other algorithms are supercharging the process?

    What should Congress do to strike the balance between innovation 
and consumer protection?

    Answer. The facts behind these highly publicized insurance denials 
are still being sussed out in litigation and other investigations. 
Algorithms certainly have the ability to propagate errors on a massive 
scale, and therefore are rightly a focus of these investigations.

    It is critical for Congress and CMS to exercise close oversight of 
how Medicare Advantage plans and other insurers are using algorithms in 
coverage decisions, including but not limited to algorithms that use 
artificial intelligence/machine learning (AI/ML). CMS recently took the 
important step of addressing these practices through a final rule 
requiring Medicare Advantage plans to make medical necessity 
determinations ``based on the circumstances of the specific individual 
. . . as opposed to using an algorithm or software that doesn't account 
for an individual's circumstances.'' The final rule further specifies 
that determinations must be reviewed by a medical professional.

    However, more could be done to reduce ambiguity around what it 
means to merely ``use'' algorithms, as opposed to allowing them to 
drive decisions; what it means to ``account for'' individual 
circumstances; and what it means to have algorithm results ``reviewed 
by'' a human.\1\ For example, a lawsuit against Cigna over its use of a 
non-AI-driven algorithm to make medical necessity determinations, 
alleges that the reviewing physicians spent, on average, 1.2 seconds 
per denied claim. That is human review in name only.
---------------------------------------------------------------------------
    \1\ Mello MM, Rose S. Denial--artificial intelligence tools and 
health insurance coverage decisions. JAMA Health Forum (forthcoming on 
March 7, 2024; to be available at https://jamanetwork.com/journals/
jama-health-forum or from the authors at mmello@law.stanford.
edu).

    To establish a good balance between facilitating innovation and 
protecting consumers, Congress and CMS should set concrete standards 
for insurers' use of algorithms that provide greater specificity 
---------------------------------------------------------------------------
regarding what is and isn't acceptable.

    For example, what must insurers disclose about the factors that 
algorithms take into account in generating output? Are there certain 
factors that algorithms for different types of decisions must include 
or may not include? What kinds of plans should insurers have in place 
for testing whether the algorithm is performing as well for their 
patients as the developer claimed it would, based on training data? Are 
there circumstances in which human reviewers must reach out to the care 
team and patient or family members before ratifying an algorithmic 
decision to deny a claim--if so, what are they? CMS should also 
vigorously pursue its planned audits of health plans' use of 
algorithms, as described in its February 2024 guidance document.

    Question. My recent oversight efforts into medical privacy have 
demonstrated that Medicare and Medicaid beneficiaries' pharmacy records 
are vulnerable to seizure by law enforcement at the pharmacy counter. 
Recent news reports suggest that transgender children and adults' 
medical records are similarly vulnerable to seizure by health oversight 
authorities at hospitals and clinics.

    What more should Congress do to ensure that patients' medical data 
is being protected by health-care entities?

    What can, and should, hospitals, clinics, and other providers 
already be doing on their own to safeguard the privacy of Medicare and 
Medicaid patients?

    Answer. AI models are usually developed on data that don't include 
information that directly identifies patients (i.e., ``deidentified'' 
data). When a hospital shares fully deidentified data with an external 
algorithm developer for purposes of creating or improving an algorithm, 
it doesn't implicate HIPAA or other information privacy laws. Some 
patients undoubtedly would object to having their data used by third-
party developers in this way, and in the future it will increasingly be 
possible to identify patients by triangulating putatively deidentified 
data from different sources. But presently this risk is not high--if 
data are leaked or hacked, for example, it's not immediately apparent 
whose data the unauthorized party is looking at. Imposing restrictions 
on sharing deidentified data would certainly dampen innovation and keep 
it concentrated at large companies and medical centers who already 
possess big datasets of patient information.

    Requests by law enforcement for information about specific patients 
are an entirely different problem. Here, patients are identified, and 
the party that wants the data usually wants it in order to take some 
adverse action against them (such as prosecuting patients for obtaining 
abortion medications or prosecuting doctors for helping patients obtain 
abortion care). Currently, HIPAA permits but does not require 
hospitals, pharmacies, and other covered entities to disclose patient 
data in response to law enforcement requests. They may be inclined to 
comply because resistance invites further legal tussles.\2\
---------------------------------------------------------------------------
    \2\ Spector-Bagdady K, Mello MM. Protecting the privacy of 
reproductive health information after the fall of Roe v Wade. JAMA 
Health Forum. 2022;3(6):e222656.

    Congress and HHS could strengthen patient protections by advancing 
the HHS proposed rule that would prohibit disclosures of identifiable 
patient information in proceedings against individuals relating to 
reproductive health care. The proposed rule limits protection to care 
that was legal in the State where it was provided; protection could be 
expanded by eliminating that limitation. Proposals to require a warrant 
in order to obtain medical records would also strengthen patient 
protections, though they would not prevent law enforcers from obtaining 
medical records in every instance. Finally, Congress could extend 
patient protections by adopting new privacy rules for online health 
resources such as fertility trackers and other apps, since HIPAA only 
---------------------------------------------------------------------------
reaches entities that provide health care and meet other requirements.

                                 ______
                                 
               Questions Submitted by Hon. Chuck Grassley
    Question. I'm a strong defender of maintaining and improving access 
to rural health care.

    Can you describe policy considerations we should take into account 
when promoting and paying for artificial intelligence in rural health 
care?

    Answer. There are two key things to keep in mind when thinking 
about how to ensure that the benefits of AI and other forms of health 
IT are equitably shared by rural health facilities and the patients 
they serve. First, many rural facilities do not have the technical 
resources (human or computer) to conduct sophisticated evaluations of 
potential IT tools or implement these tools with extensive monitoring. 
It is not realistic to expect small, rural health-care facilities to 
develop a great deal of AI expertise in the near term, even with 
financial help. There are certainly aspects of responsible AI use that 
can and should be done locally, such as assessment of how the facility 
will train nurses and physicians on interacting with an AI tool, and 
how the tool will be integrated into these practitioners' workflow. But 
for other aspects of AI evaluation, it makes more sense to have 
evaluation services provided by larger organizations. The current 
initiative to create AI ``assurance labs'' will do so, if Congress 
ensures it is adequately funded.

    Second, many rural facilities do not have extra funds to invest in 
licensing and implementing AI tools that may improve quality of care 
but won't generate new revenue or save them money. If Congress wants 
such tools to be widely adopted, it and HHS should design programs to 
subsidize adoption. This could be done directly (e.g., through grants 
or tax credits) or by adjusting reimbursement for particular services 
in Medicare, Medicaid, and other insurance programs.

    We do not want to cultivate a system in which patients in rural 
areas receive less benefit or are exposed to higher risk from AI tools 
than patients in better-resourced areas. Nor do we want a system in 
which patients see surcharges on their medical bills for facilities' 
use of AI tools, forcing them to pay out of pocket for AI or make tough 
decisions about whether to opt in to use of a particular AI tool in 
their care at their expense. Just as with adoption of electronic health 
records, Federal programs can provide strong financial incentives to 
assure a different future.

    Question. Are you aware of any government oversight entities, such 
as the Government Accountability Office or Inspector General, using 
artificial intelligence to stop waste, fraud, and abuse?

    If so, how are they using artificial intelligence, and is it 
effective? If not, how can we deploy artificial intelligence as an 
oversight tool?

    Answer. I do not have the necessary information to provide a 
response.

                                 ______
                                 
               Questions Submitted by Hon. Maria Cantwell
    Question. One of the few sectors where we've successfully 
implemented meaningful privacy protections is health care, with the 
enactment of the Health Insurance Portability and Accountability Act 
(HIPAA). As we continue struggling to bring effective privacy 
protections to consumers in all sectors of the economy, I'm concerned 
that with AI in health care we may move backwards in terms of privacy.

    As we know, AI runs on data--lots of data. And the most valuable 
data that exists is health-care data. The financial incentive to train 
AI models on sensitive health data is enormous, but we must also be 
aware of accidental abuses. For example, we know that Large Language 
Models tend to ``leak'' data--including the data they are trained on, 
as well as data they process during normal use.

    These mistakes, whether intentional or not, could have enormous 
consequences for certain people, such as people who travel to another 
State to get abortions, or those who use menstrual cycle tracker apps 
that collect sensitive health data. The leaked data could potentially 
be used to prosecute these patients who are just trying to get 
reproductive care. That's a critical issue in Washington State, where 
the number of out-of-State patients seeking abortion care increased by 
46 percent in 2022.

    We should not be compromising the safety of technology users just 
so AI can collect data and improve algorithms.

    What threats does AI pose to privacy in the health-care sector, and 
how often does data get accidentally leaked?

    How can we improve parameters on data security so that laws like 
HIPAA can be updated to meet the security requirements in the age of 
artificial intelligence?

    Answer. AI models are usually developed on data that don't include 
information that directly identifies patients (i.e., ``deidentified'' 
data). When a hospital shares fully deidentified data with an external 
algorithm developer for purposes of creating or improving an algorithm, 
it doesn't implicate HIPAA or other information privacy laws. Some 
patients undoubtedly would object to having their data used by third-
party developers in this way, and in the future it will increasingly be 
possible to identify patients by triangulating putatively deidentified 
data from different sources. But presently this risk is not high--if 
data are leaked or hacked, for example, it's not immediately apparent 
whose data the unauthorized party is looking at. Imposing restrictions 
on sharing deidentified data would certainly dampen innovation and keep 
it concentrated at large companies and medical centers who already 
possess big datasets of patient information.

    Requests by law enforcement for information about specific patients 
are an entirely different problem. Here, patients are identified, and 
the party that wants the data usually wants it in order to take some 
adverse action against them (such as prosecuting patients for obtaining 
abortion medications or prosecuting doctors for helping patients obtain 
abortion care). Currently, HIPAA permits but does not require 
hospitals, pharmacies, and other covered entities to disclose patient 
data in response to law enforcement requests. They may be inclined to 
comply because resistance invites further legal tussles.\3\
---------------------------------------------------------------------------
    \3\ Spector-Bagdady K, Mello MM. Protecting the privacy of 
reproductive health information after the fall of Roe v Wade. JAMA 
Health Forum. 2022;3(6):e222656.

    Congress and HHS could strengthen patient protections by advancing 
the HHS proposed rule that would prohibit disclosures of identifiable 
patient information in proceedings against individuals relating to 
reproductive health care. The proposed rule limits protection to care 
that was legal in the State where it was provided; protection could be 
expanded by eliminating that limitation. Proposals to require a warrant 
in order to obtain medical records would also strengthen patient 
protections, though they would not prevent law enforcers from obtaining 
medical records in every instance. Finally, Congress could extend 
patient protections by adopting new privacy rules for online health 
resources such as fertility trackers and other apps, since HIPAA only 
---------------------------------------------------------------------------
reaches entities that provide health care and meet other requirements.

    Question. I think everybody understands that health care is a 
deeply personal vocation. I don't think we'll ever have machines that 
can sit up all night holding a dying patient's hand. So we all 
appreciate how important it is to preserve the human element in health 
care.

    When people talk about AI technology in general, the phrase they 
use is ``a human in the loop''--we need to keep a human in the loop. 
But in health care, I think we want a lot more than a human ``in the 
loop.'' We need to be certain that crucial decisions are being made by 
humans.

    It's great that AI can help us make better decisions, but I'm 
concerned that things might go the other way, where humans merely 
implement decisions made by machines. We know that humans often tend to 
believe what a computer tells them. This issue is compounded by the 
fact that the data that algorithms use can contain harmful biases, 
which would eventually be amplified to make decisions that could hurt 
health equity and lead to negative health outcomes for certain 
population groups. That is why it is so crucial that humans remain the 
final decision-maker so that we can avoid a situation where the tail is 
wagging the dog.

    How can we be sure, as AI is integrated into our health-care 
systems, that human judgement will not be subordinated to the judgement 
of machines?

    Answer. We can ensure this by setting standards for, and 
monitoring, how medical professionals interact with AI tools. Right 
now, conversations about AI regulation and governance focus heavily on 
the algorithms themselves--but equally important is how the adopting 
organization will use and monitor the algorithms. To take a simple 
analogy, if we want to avoid motor vehicle accidents, we can't just set 
design standards for cars. Road safety features, driver's licensing 
requirements, and rules of the road all play important roles in keeping 
people safe.

    Because the success of AI tools depends on the adopting 
organization's ability to support them through vetting and monitoring, 
the Federal Government should establish standards for organizational 
readiness and responsibility to use health-care AI tools, as well as 
for the tools themselves. For example, how will hospitals ensure that 
their clinical staff don't fall victim to automation bias (humans' 
well-
documented tendency to over-rely on computerized decision support tools 
and fail to catch errors and intervene where we should)? How will they 
ensure that for each tool implemented, there is a well-conceived plan 
for monitoring for automation bias and intervening--including stopping 
use of the tool--if problems are discovered?

    Question. Is it possible to weed out harmful biases in AI 
algorithms? What type of guard rails can we implement to ensure that 
harmful biases do not form the basis of health-care decisions 
recommended by artificial intelligence?

    Answer. First, it is important to understand that very often, 
biases in algorithms aren't really about the algorithms--they're about 
the data used to train them. If particular demographic groups are 
underrepresented in training datasets, the risk that a model will 
underperform for those groups is heightened, because the model wasn't 
given enough information to learn how to get it right. Relatedly, if 
model developers use suboptimal data as a proxy for the thing they're 
really trying to predict (for example, using people's health-care 
utilization to approximate their health-care need), the results will be 
concomitantly poor. Therefore, a critical component of improving equity 
by design is improving the richness and representativeness of the 
datasets available to train them.

    To improve data resources, Federal agencies could release more of 
the data the government currently holds, and allow its use with fewer 
restrictions and costs. Often, data access is restricted in order to 
protect marginalized groups, but the restrictions can come at the 
expense of those very same groups. Congress and HHS could also require 
more collection and clear labeling of demographic groups in various 
datasets. For instance, many radiographic images are not marked as 
belonging to a child versus an adult.

    Second, while these steps would be helpful, it is probably not 
possible to design away all bias. For example, even free-flowing 
electronic health record data or insurance claims data wouldn't change 
the fact that some population groups have lower access to health care, 
so will be underrepresented in those data until our health system 
improves equity of access.

    Because bias is always a risk, it is critical that both algorithm 
developers and algorithm users test for it. This should be a key part 
of any Federal standards for algorithms as well as the implementation 
plans that hospitals and other facilities put together when they want 
to use algorithms, i.e., what will the hospital do (perhaps in 
partnership with the developer or another external organization like an 
assurance lab) to show that, 6 months into using an AI tool, it is 
performing as well for Black patients as for Caucasian patients?

    Finally, the humans using AI tools need to be trained to account 
for bias when they make decisions. If an algorithm performs better for 
some groups of patients than others, the physicians, nurses, and 
facility administrators who use the algorithm need to know that, and to 
be reminded to think about it when they are deciding how, if at all, to 
use model output when they make decisions.

                                 ______
                                 
                Questions Submitted by Hon. John Cornyn
    Question. Last month, HHS's Office of the National Coordinator for 
Health IT finalized a rule establishing new data standards and 
reporting requirements for clinicians using ONC-certified health IT. As 
this technology becomes more prevalent in patient care, we must ensure 
patient safety but also recognize that smaller or rural providers might 
not have the same resources to implement these new requirements. For 
example, while larger health systems may have a designated Chief 
Technology Officer, smaller practices may have someone who is juggling 
this and many other roles.

    What are the risks of creating new data or IT requirements that 
smaller health systems do not have the tools to properly implement?

    Are there incentives we can use to encourage health-care providers 
to implement IT best practices?

    Answer. There are two key things to keep in mind when thinking 
about how to ensure that the benefits of AI and other forms of health 
IT are equitably shared by rural health facilities and the patients 
they serve. First, many rural facilities do not have the technical 
resources (human or computer) to conduct sophisticated evaluations of 
potential IT tools or implement these tools with extensive monitoring. 
It is not realistic to expect small, rural health-care facilities to 
develop a great deal of AI expertise in the near term, even with 
financial help. There are certainly aspects of responsible AI use that 
can and should be done locally, such as assessment of how the facility 
will train nurses and physicians on interacting with an AI tool, and 
how the tool will be integrated into these practitioners' workflow. But 
for other aspects of AI evaluation, it makes more sense to have 
evaluation services provided by larger organizations. The current 
initiative to create AI ``assurance labs'' will do so, if Congress 
ensures it is adequately funded.

    Second, many rural facilities do not have extra funds to invest in 
licensing and implementing AI tools that may improve quality of care 
but won't generate new revenue or save them money. If Congress wants 
such tools to be widely adopted, it and HHS should design programs to 
subsidize adoption. This could be done directly (e.g., through grants 
or tax credits) or by adjusting reimbursement for particular services 
in Medicare, Medicaid, and other insurance programs.

    We do not want to cultivate a system in which patients in rural 
areas receive less benefit or are exposed to higher risk from AI tools 
than patients in better-resourced areas. Nor do we want a system in 
which patients see surcharges on their medical bills for facilities' 
use of AI tools, forcing them to pay out of pocket for AI or make tough 
decisions about whether to opt in to use of a particular AI tool in 
their care at their expense. Just as with adoption of electronic health 
records, Federal programs can provide strong financial incentives to 
assure a different future.

                                 ______
                                 
               Questions Submitted by Hon. Sherrod Brown
    Question. I am deeply concerned about the many barriers that 
patients face in accessing timely care, including arduous prior 
authorization processes.

    I introduced bipartisan legislation, the Improving Seniors' Timely 
Access to Care Act, which would modernize and streamline prior 
authorization processes in the Medicare Advantage program and improve 
access to timely care. Many of the policies included in this 
legislation have been finalized by the Centers for Medicare and 
Medicaid Services (CMS).

    I understand that Artificial Intelligence (AI) could be utilized as 
a tool to quicken prior authorization processes and increase access to 
care. While this is a significant step forward in eliminating barriers 
that delay care to patients, it is important that there are sufficient 
guardrails in place to prevent people from systematically or 
inaccurately being denied treatment.

    What are some ways that Congress can better oversee the use of AI 
in the prior authorization process?

    How can Congress ensure that AI does not cause a disruption in or 
denial of care that beneficiaries are entitled to under the law?

    Answer. The facts behind these highly publicized insurance denials 
are still being sussed out in litigation and other investigations. 
Algorithms certainly have the ability to propagate errors on a massive 
scale, and therefore are rightly a focus of these investigations.

    It is critical for Congress and CMS to exercise close oversight of 
how Medicare Advantage plans and other insurers are using algorithms in 
coverage decisions, including but not limited to algorithms that use 
artificial intelligence/machine learning (AI/ML). CMS recently took the 
important step of addressing these practices through a final rule 
requiring Medicare Advantage plans to make medical necessity 
determinations ``based on the circumstances of the specific individual 
. . . as opposed to using an algorithm or software that doesn't account 
for an individual's circumstances.'' The final rule further specifies 
that determinations must be reviewed by a medical professional.

    However, more could be done to reduce ambiguity around what it 
means to merely ``use'' algorithms, as opposed to allowing them to 
drive decisions; what it means to ``account for'' individual 
circumstances; and what it means to have algorithm results ``reviewed 
by'' a human.\4\ For example, a lawsuit against Cigna over its use of a 
non-AI-driven algorithm to make medical necessity determinations, 
alleges that the reviewing physicians spent, on average, 1.2 seconds 
per denied claim. That is human review in name only.
---------------------------------------------------------------------------
    \4\ Mello MM, Rose S. Denial--artificial intelligence tools and 
health insurance coverage decisions. JAMA Health Forum (forthcoming on 
March 7, 2024; to be available at https://jamanetwork.com/journals/
jama-health-forum or from the authors at mmello@law.stanford.
edu).

    To establish a good balance between facilitating innovation and 
protecting consumers, Congress and CMS should set concrete standards 
for insurers' use of algorithms that provide greater specificity 
regarding what is and isn't acceptable. For example, what must insurers 
disclose about the factors that algorithms take into account in 
generating output? Are there certain factors that algorithms for 
different types of decisions must include or may not include? What 
kinds of plans should insurers have in place for testing whether the 
algorithm is performing as well for their patients as the developer 
claimed it would, based on training data? Are there circumstances in 
which human reviewers must reach out to the care team and patient or 
family members before ratifying an algorithmic decision to deny a 
claim--if so, what are they? CMS should also vigorously pursue its 
planned audits of health plans' use of algorithms, as described in its 
---------------------------------------------------------------------------
February 2024 guidance document.

                                 ______
                                 
             Questions Submitted by Hon. Sheldon Whitehouse
    Question. Rhode Island has several health-care enterprises that we 
are very proud of, including the State-wide Rhode Island All-Payer 
Claims Database (RI APCD).

    What role can AI play with regard to maximizing the utility of a 
robust, All-Payer Claims Database?

    Answer. The potential to develop AI tools has increased demand for 
patient data, which can be used to train and test AI models. All-payer 
claims databases are valuable because, relative to other commonly used 
data sources, they are broader in geographic scope and/or the groups of 
patients represented. Because they may be more representative of the 
patient population as a whole, they are especially useful for avoiding 
the biases that come from training models on narrower groups of 
patients. Yet, it is important to keep in mind that claims databases 
represent people's health-care use, not their health-care needs. 
Because people face various barriers to accessing care, health-care use 
isn't necessarily a good proxy of who needs what health care or could 
benefit from more health care.

    Initiatives to make it easier for researchers and model developers 
to access all-payer databases-- with appropriate data protections--can 
advance these goals. Policymakers may wish to consider whether access 
should be equally available to commercial developers and not-for-profit 
organizations (e.g., academic medical centers that are developing and 
testing algorithms) or whether for-profit companies' access to patient 
data should be more restricted.

    Question. Are you working in the development of AI with some of the 
medical specialty organizations (orthopedics, cardiologists, etc.)? Are 
specialty organizations a useful place for benchmarking, approval, or 
accrediting best AI practices? And if they are, do you have any good 
examples of a medical specialty association that is being particularly 
forward and helpful at looking for the best uses of AI within the 
specialty?

    Answer. I am not presently working with any physician specialty 
organizations, but I have recently begun helping the American Hospital 
Association (AHA) perform an assessment of an AI algorithm designed to 
improve diagnosis of a serious cardiac condition. Presently, medical 
professional organizations don't appear to have the capacity to 
evaluate AI algorithms themselves. They could, however, be very helpful 
as consultants to organizations that are performing those assessments--
for example, by helping them anticipate issues that could arise when 
physicians or nurses start working with an AI tool. They could also 
receive data from AI tool assessments 6 performed by others and convene 
experts to consider whether the data support a recommendation that a 
particular AI tool be more widely used (e.g., by including it in a 
clinical practice guideline), or that it be used or not used in a 
specific way.

    Question. Rhode Island has two, unusually good Accountable Care 
Organizations (ACOs). In what ways could artificial intelligence be 
used to support the ACO program?

    Answer. ACOs become eligible for Shared Savings by meeting certain 
quality measures. For example, several measures pertain to preventive 
care screening rates, such as mammography and fall risk screening. For 
some of these quality measures, AI tools could improve ACOs' ability to 
identify and reach patients in the relevant group for a particular 
measure. For instance, they could improve a hospital's ability to 
predict which patients are at highest risk of readmission within 30 
days of discharge. AI tools could also help identify other quality 
measures that could be added to CMS's list (for example, by identifying 
aspects of care that predict better patient outcomes).

                                 ______
                                 
  Prepared Statement of Ziad Obermeyer, M.D., Associate Professor and 
    Blue Cross of California Distinguished Professor, University of 
                          California, Berkeley
    AI will transform medicine and the health-care system--for better 
or for worse, depending on how it is built and applied.

    Thank you for the opportunity to address the committee. I am a 
professor and researcher at Berkeley, but my work on AI is grounded in 
another part of my identity, as a practicing emergency physician. 
Seeing patients, from academic hospitals in Boston to Tsehootsooi 
Medical Center in Fort Defiance, AZ, has given me a window into the 
miracles of modern medicine--awe-inspiring innovations in the diagnosis 
and treatment of disease, that have extended and improved life for 
millions.

    Getting those miraculous tests and treatments to the right patient 
at the right time, though, is difficult. It requires processing 
enormous amounts of information, much of it imperfect and uncertain; 
errors have life-and-death consequences. Senators, I cannot imagine 
what it is like to do your job, but my guess is that you face 
situations like that every day. Throughout my 10 years of practicing 
medicine, I have agonized over missed diagnoses, futile treatments, 
unnecessary tests, and more. The collective weight of these errors, in 
my view, is a major driver of the dual crisis in our health-care 
system: suboptimal outcomes at very high cost.\1\ AI holds tremendous 
promise as a solution to both problems.
---------------------------------------------------------------------------
    \1\ While economists and policymakers have traditionally focused on 
the role of misaligned financial incentives, a large and growing body 
of recent research indicates much of our health-care system's 
inefficiency has its roots in human error. See Baicker, K., 
Mullainathan, S. and Schwartzstein, J., 2015. Behavioral hazard in 
health insurance. The Quarterly Journal of Economics, 130(4), pp. 1623-
1667.

    By helping doctors and others in the health-care system make better 
decisions, I believe AI can both improve health and reduce costs--a 
rare combination. Let me share a few concrete examples drawn from my 
---------------------------------------------------------------------------
own work, to convey why I am so optimistic.

    In the U.S. alone, 300,000 people experience sudden cardiac death 
every year.\2\ What makes these events so tragic is that many of them 
are preventable: had we known a patient was at high risk, we would have 
implanted a defibrillator in her heart, to terminate the potential 
arrythmias that cause sudden death, and save her life. Unfortunately, 
we are very bad at knowing who is at high risk. It's not just that we 
miss 300,000 opportunities every year to implant defibrillators and 
prevent those deaths. Even when we do implant defibrillators, we often 
do so in the wrong patients: up to one-third of patients end up never 
needing their defibrillator, meaning we increased their risk of 
complications and wasted resources without ever delivering a lifesaving 
shock.\3\
---------------------------------------------------------------------------
    \2\ Huikuri, H.V., Castellanos, A. and Myerburg, R.J., 2001. Sudden 
death due to cardiac arrhythmias. New England Journal of Medicine, 
345(20), pp. 1473-1482.
    \3\ Moss, A.J., Greenberg, H., Case, R.B., Zareba, W., Hall, W.J., 
Brown, M.W., Daubert, J.P., McNitt, S., Andrews, M.L. and Elkin, A.D., 
2004. Long-term clinical course of patients after termination of 
ventricular tachyarrhythmia by an implanted defibrillator. Circulation, 
110(25), pp. 3760-3765.

    Fifteen years ago, when I was in medical school, I was stunned by 
these numbers. Today, working with colleagues in the U.S. and Sweden, 
we have trained an AI system to predict the risk of sudden cardiac 
death using just the waveform of a patients electrocardiogram (ECG). It 
performs far better than our current prediction technologies, based 
largely on human judgment. This means we have the potential to both 
save more lives and reduce waste, by ensuring that precious 
defibrillators are implanted in the right patients. It's rare to have 
an opportunity to both improve quality and reduce cost; normally we 
must choose. AI is a transformative new way for us to sidestep this 
dilemma entirely, and rebuild our health-care system on a foundation of 
---------------------------------------------------------------------------
data-driven decision-making.

    This principle--better human decisions through AI-driven 
predictions--extends far beyond sudden cardiac death. We've found 
similar opportunities to improve quality and reduce cost in settings 
ranging from invasive testing for heart attack \4\ to mammograms for 
breast cancer prevention.\5\ AI can also help diagnose social 
vulnerability: we have promising early results showing AI can find 
subtle signs of interpersonal violence in x-rays. This means physicians 
can help recognize victims of violence when they come to seek help in 
the ER--instead of missing those opportunities, as happens all too 
often today--and social services can connect them to the resources they 
need.\6\ AI is also starting to drive innovation in the science of 
medicine, for example, by discovering entirely new classes of 
antibiotics in drug libraries that were passed over for decades by 
human researchers.\7\
---------------------------------------------------------------------------
    \4\ Mullainathan, S. and Obermeyer, Z., 2022. Diagnosing physician 
error: A machine learning approach to low-value health care. The 
Quarterly Journal of Economics, 137(2), pp. 679-727.
    \5\ Daysal, N.M., Mullainathan, S., Obermeyer, Z., Sarkar, S.K. and 
Trandafir, M., 2022. An Economic Approach to Machine Learning in Health 
Policy. CEBI Working Paper. https://papers.ssrn.com/sol3/
papers.cfm?abstract_id=4305806.
    \6\ Williams, B., Oto, A., Ludwig, J., Graber, R., Obermeyer, Z. 
and Mullainathan, S., 2023. Making the invisible epidemic visible. 
https://www.brookings.edu/articles/making-the-invisible-epidemic-
visible/.
    \7\ Stokes J.M., et al. A deep learning approach to antibiotic 
discovery. Cell. 2020 February 20;180(4):688-702.

    Despite my great optimism, I worry that without concerted effort 
from researchers, the private sector, and government, AI may be on a 
path to do more harm than good in health care. So I'd also like to 
provide an example of how AI can go wrong. Working on this problem has 
taught me a lot about we can work together to ensure that AI systems 
---------------------------------------------------------------------------
are safe.

    Five years ago, my colleagues and I uncovered evidence that a 
family of poorly designed AI algorithms, built and used in both public 
and private sectors, contained large-scale racial bias.\8\ These 
algorithms had a laudable goal: to identify patients at high risk of 
future health problems--exacerbations of chronic conditions like heart 
failure, diabetes, etc. The AI's predictions are used by health systems 
around the world to decide who gets access to extra help, in the form 
of ``care management'' programs. In theory, this is a great use of AI, 
because these programs are a win-win: high-risk patients get the help 
they need to manage chronic conditions, reducing future flare-ups and 
complications; and the health-care system saves the money it would have 
spent on the resulting ER visits and hospitalizations.
---------------------------------------------------------------------------
    \8\ Obermeyer, Z., Powers, B., Vogeli, C. and Mullainathan, S., 
2019. Dissecting racial bias in an algorithm used to manage the health 
of populations. Science, 366(6464), pp. 447-453.

    Unfortunately, a subtle-seeming choice in the AI's design caused 
untold harm: a gap between what the algorithms were supposed to predict 
(health-care needs) and what they actually predicted (health-care 
costs). The AI's goal was to identify patients with high future health 
needs. But AI is extremely literal--it predicts a specific variable, in 
a specific dataset--and there is no variable available called ``future 
health needs.'' So instead, the AI developers chose to predict a proxy 
variable that is present in health datasets: future health-care costs. 
Spending on health care seems like a reasonable proxy for health needs. 
After all, sick people generate health costs. But because of 
discrimination and barriers to access, underserved patients who need 
health care often don't get it. This means Black patients--and also 
poorer patients, rural patients, less-educated patients, and all those 
who face barriers to accessing health care when they need it--get less 
spent on their health care than their better-served counterparts, even 
though they have the same underlying health conditions.\9\ Low costs do 
not necessarily mean low needs.
---------------------------------------------------------------------------
    \9\ While our work focused on demonstrating one specific bias--
Black versus White patients--this is not an issue of race alone: any 
populations with a wedge between the care they need and the care they 
get will be similarly affected.

    Tragically, the AI ignored these simple facts. It predicted--
accurately--that Black patients would generate lower costs, and thus 
deprioritized them for access to help with their health. The result was 
racial bias that affected important decisions for hundreds of millions 
of patients every year. Senator Wyden, I was heartened by the letters 
that you and Senator Booker sent to executives at major insurance 
companies in the wake of that study--I believe that had a great impact. 
Unfortunately, many of the biased algorithms we studied remain in use 
today. And similar dynamics were highlighted by a recent investigation 
of AI products used to deny claims:\10\ in all these cases, AI learns 
from historical data, with all its biases and inequities, and encodes 
those past practices in policy. So those underserved patients whose 
claims have been denied by humans in our past datasets--often for 
unjust reasons--will have their claims denied by AI at scale, forever, 
unless we can realign AI with our society's goals.
---------------------------------------------------------------------------
    \10\ Ross, C. and Herman, B., 2023. Denied by AI. STAT News. March 
13, 2023. https://www.statnews.com/2023/03/13/medicare-advantage-plans-
denial-artificial-intelligence/.

    Fortunately, there are a number of specific things that programs 
under this committee's jurisdiction can do to ensure that AI produces 
the social value we all want. I believe that Medicare, Medicaid, CHIP, 
and child welfare programs stand to realize enormous benefits from AI: 
well-designed products can both improve the quality of services and 
reduce their cost. As a result, these programs should be willing to pay 
for AI--but they should not simply accept the flawed products that the 
market often produces. Rather, they should take advantage of their 
market power to articulate clear criteria for what they will pay for, 
and how much. I believe this will harness the tremendous innovative 
---------------------------------------------------------------------------
power of the market, and ensure it is pointed in the right direction.

    Based on my research, as well as my work with Federal regulators 
and State Attorneys General, I believe that programs in the committee's 
jurisdiction should explicitly evaluate AI algorithms for reimbursement 
on a small set of targeted criteria. AI developers must be transparent 
about the output of their algorithms. If an algorithm predicts health 
care costs, the developer should not be able to claim that it predicts 
``health risks'' or ``health needs''--unfortunately, many cost-
predictors currently do exactly this. Algorithms' outputs should be 
evaluated for accuracy in a completely independent dataset, both 
overall and in protected groups, in keeping with good machine learning 
practice.\11\ I emphasize that this approach focuses on the output of 
the algorithm--the accuracy of its predictions on a transparently 
stated target--and thus does not require ``opening the black box'': 
algorithms can be evaluated simply based on the predictions they 
produce. This avoids compromising trade secrets, and means purchasers 
(and similarly, regulators) do not need to evaluate the inputs of 
algorithms, or understand the many reasons why they might be biased--
technical problems with a complex model, non-representative training 
data, use of an explicit race correction, etc. Instead, we can focus on 
one simple question: is the algorithm predicting what it's supposed to 
predict, accurately and equitably?\12\ Finally, AI products should be 
valued and reimbursed according to established principles from health 
economics and outcomes research. If an AI results in an earlier 
diagnosis of heart attack or breast cancer, for example, that generates 
value to patients in the form of life-years, and to the health-care 
system in the form of downstream costs avoided. The sooner public 
programs lay out what they are looking for, the sooner the market can 
deliver safe and effective AI products to solve the urgent problems 
they face.
---------------------------------------------------------------------------
    \11\ Accessing data for such evaluations is a non-trivial problem, 
but there are emerging solutions. For example, a company I cofounded, 
Dandelion Health, offers a free public service for the evaluation of 
algorithm performance and equity. This service, which is 
philanthropically supported by the Gordon and Betty Moore Foundation 
and the SCAN Foundation, allows any AI developer to securely upload the 
algorithm to Dandelion's computing environment. Dandelion will run the 
algorithm on its diverse national dataset and deliver back a report on 
the algorithm's performance, both overall and across key geographic, 
racial, ethnic, age, gender, and socioeconomic groups. More details are 
at https://dandelionhealth.ai/validation.
    \12\ This is analogous to the process by which the FDA regulates 
information about drugs: pharmaceutical companies must be transparent 
about the primary outcome a drug is intended to improve, and the drug's 
impact on that outcome is assessed in a rigorous randomized trial.

    I should note that my applied work has resulted in collaborations 
with a number of public and private entities, but the views I present 
---------------------------------------------------------------------------
are entirely my own, based on my experiences and research.

    Many thanks again for this opportunity. I look forward to answering 
your questions.

                                 ______
                                 
       Questions Submitted for the Record to Ziad Obermeyer, M.D.
                 Questions Submitted by Hon. Ron Wyden
    Question. Providers use algorithms to guide clinical care--making 
diagnoses, recommending treatments, and predicting outcomes. 
Unfortunately, some of these algorithms, including one that you 
investigated in 2019, have been built atop flawed data and faulty 
assumptions. These tools can perpetuate harmful biases and disparities 
in care--ultimately hurting patients. It's another example where the 
profits are being privatized, but the risks are being socialized.

    What should Congress consider to ensure that clinical AI tools are 
used to support an equitable health-care system so that everyone 
benefits?

    There has been significant concern raised about racial and other 
biases in predictive algorithms. In 2022, I urged my home State of 
Oregon to stop using its AI screening tool because of reports that 
Black families were being disproportionately referred for mandatory 
child neglect investigations when the tool was used. I am glad that 
Oregon paused the use of their tool--making decisions about families is 
too important to use tools that aren't ready for prime time and bake in 
bias.

    What steps does Congress need to take to ensure that child welfare 
agencies are using AI and predictive algorithms in responsible and 
ethical ways, avoiding bias, and ensuring privacy protection for the 
personal data of children and families?

    Answer. I believe Congress has two different kinds of opportunities 
to ensure that AI tools are developed in an effective and just way, for 
both health and child welfare.

    The most powerful lever Congress, and the Senate Finance Committee 
in particular, can pull is incentives. Today, AI developers are getting 
little guidance from payers or government agencies on which products 
will be reimbursed. That uncertainty leads to under-investment in 
developing new products that benefit patients and society, and has also 
resulted in deeply flawed tools that perpetuate bias.

    CMS can solve this problem by defining clear criteria, and 
accompanying payment rates, for health AI products that improve the 
cost-effectiveness of care. This will set the goalposts for industry 
innovation in a way that benefits the public, as well as CMS. I am very 
optimistic that AI can have meaningful health and economic impacts, by 
detecting and treating disease early in a way that helps providers 
change the disease trajectory. Working across a range of high-priority 
problems--e.g., dialysis, end-stage heart failure, frailty and 
osteoporosis--standard cost-effectiveness analysis can quantify the 
value of AI at the patient level. This can be used to decide whether 
and how much CMS should pay health providers to run the AI on a single 
patient.

    Much like an advance market commitment,\1\ CMS could then announce 
the reimbursement level for providers to run a specific AI tool on a 
patient. The price would be based on cost-effectiveness; it could and 
should be higher than marginal cost of running the algorithm: the goal 
is to catalyze investment. The price would then taper off on a set 
schedule, then could transition to value-based reimbursement for the 
outcome we want (e.g., preventing dialysis).
---------------------------------------------------------------------------
    \1\ Kremer, M., Levin, J., and Snyder, C.M., 2020, May. Advance 
market commitments: insights from theory and experience. In AEA Papers 
and Proceedings (Vol. 110, pp. 269-273).

    Importantly, reimbursement should be conditional on the AI meeting 
performance and equity (race/ethnicity, geography, et cetera) targets, 
demonstrated in an independent third-party sample the developer did not 
use to train the AI. The level of reimbursement could even be tied to 
the level of AI performance, to spur competition and avoid creating a 
---------------------------------------------------------------------------
monopoly.

    The second lever Congress can pull is direct regulatory oversight 
of AI tools, by requiring developers to adhere to two simple 
requirements before tools are used for patient care.

    First, AI developers must be transparent about the output of their 
algorithms. If an algorithm predicts health-care costs, the developer 
should not be able to claim that it predicts ``health risks'' or 
``health needs.'' I believe this will help surface what you rightly 
referred to as the ``flawed data and faulty assumptions'' that underlie 
many current tools.

    Second, the outputs of AI tools should be evaluated for accuracy in 
a completely independent dataset, both overall and in protected groups, 
in keeping with good machine learning practice. By focusing on the 
output of the algorithm--the accuracy of its predictions on a 
transparently stated target--regulators and customers do not need to 
``open the black box'': algorithms can be evaluated simply based on the 
predictions they produce. This avoids compromising trade secrets, and 
means purchasers (and similarly, regulators) do not need to evaluate 
the inputs of algorithms, or understand the many reasons why they might 
be biased--technical problems with a complex model, nonrepresentative 
training data, use of an explicit race correction, et cetera. Instead, 
we can focus on one simple question: is the algorithm predicting what 
it's supposed to predict, accurately and equitably?

    I should note that accessing data for such evaluations is a non-
trivial problem. Here too, there are steps that Congress and agencies 
under its jurisdiction can take. First, health and child welfare 
agencies should make their data available to researchers, to facilitate 
independent analyses of algorithms.

    Second, Congress should support nascent efforts to create public-
private partnerships that make available high-quality, diverse datasets 
for AI training and validation. For example, the FDA is investigating a 
``national quality assurance lab'' model where AI developers could 
securely upload their algorithms to independent dataset to objectively 
test their accuracy and equity.\2\
---------------------------------------------------------------------------
    \2\ As a concrete example of such an effort, a company I cofounded, 
Dandelion Health, offers a free public service for the evaluation of 
algorithm performance and equity. This service, which is 
philanthropically supported by the Gordon and Betty Moore Foundation 
and the SCAN Foundation, allows any AI developer to securely upload the 
algorithm to Dandelion's computing environment. Dandelion will run the 
algorithm on its diverse national dataset and deliver back a report on 
the algorithm's performance, both overall and across key geographic, 
racial, ethnic, age, gender, and socioeconomic groups. More details are 
at https://dandelionhealth.ai/validation.

                                 ______
                                 
             Questions Submitted by Hon. Sheldon Whitehouse
    Question. Rhode Island has several health-care enterprises that we 
are very proud of, including the State-wide Rhode Island All-Payer 
Claims Database (RI APCD).

    What role can AI play with regard to maximizing the utility of a 
robust, All-Payer Claims Database?

    Are you working in the development of AI with some of the medical 
specialty organizations (orthopedics, cardiologists, et cetera)? Are 
specialty organizations a useful place for benchmarking, approval, or 
accrediting best AI practices? And if they are, do you have any good 
examples of a medical specialty association that is being particularly 
forward and helpful at looking for the best uses of AI within the 
specialty?

    Rhode Island has two, unusually good Accountable Care Organizations 
(ACOs).

    In what ways could artificial intelligence be used to support the 
ACO program?

    Answer. I believe the single most important thing that Rhode Island 
can do to maximize the value of its all-payer claims database is to 
streamline the access and approval process to make the data available 
more broadly outside of Rhode Island. I have seen firsthand the amazing 
work that has been produced based on these data by researchers at 
Brown. Facilitating the process for new researchers to access the data 
would dramatically scale up their impact, far beyond Rhode Island. 
There are technological and legal frameworks that keep data secure and 
protect privacy: storing the data on modern cloud computing platforms 
is very secure; contractual and legal safeguards do not need to be 
onerous to be effective.

    I believe AI tools are particularly suited to the incentive 
environment of ACOs. By providing doctors and policymakers with 
accurate predictions, AI can enhance efforts that prevent disease at 
low cost, rather than treat it after it gets out of control. This 
applies to diagnosing heart attack,\3\ cancer screening tools like 
mammograms,\4\ and even social vulnerability: we have promising early 
results showing AI can find subtle signs of interpersonal violence in 
x-rays. This means physicians can help recognize victims of violence 
when they come to seek help in the ER--instead of missing those 
opportunities, as happens all too often today--and social services can 
connect them to the resources they need.\5\
---------------------------------------------------------------------------
    \3\ Mullainathan, S. and Obermeyer, Z., 2022. Diagnosing physician 
error: A machine learning approach to low-value health care. The 
Quarterly Journal of Economics, 137(2), pp. 679-727.
    \4\ Daysal, N.M., Mullainathan, S., Obermeyer, Z., Sarkar, S.K. and 
Trandafir, M., 2022. An Economic Approach to Machine Learning in Health 
Policy. CEBI Working Paper. https://papers.ssrn.com/sol3/
papers.cfm?abstract_id=4305806.
    \5\ Williams, B., Oto, A., Ludwig, J., Graber, R., Obermeyer, Z. 
and Mullainathan, S., 2023. Making the invisible epidemic visible. 
https://www.brookings.edu/articles/making-the-invisible-epidemic-
visible/.

    This means we have the potential to both save more lives and reduce 
waste, by ensuring that precious resources are allocated to the right 
patients. It's rare to have an opportunity to both improve quality and 
reduce cost; normally we must choose. AI is a transformative new way 
for us to sidestep this dilemma entirely, and rebuild our health care 
---------------------------------------------------------------------------
system on a foundation of data-driven decision-making.

    I am not working with any medical specialty organizations. I 
believe those organization could have a productive role in convening AI 
developers and urging them to follow best practices (e.g., as noted in 
my responses to Senator Wyden--specificity and independent evaluation) 
as they develop their tools.

                                 ______
                                 
             Prepared Statement of Mark Sendak, M.D., MPP, 
                     Co-Lead, Health AI Partnership
    Chairman Wyden, Ranking Member Crapo, and members of the committee, 
my name is Mark Sendak, and I appreciate the opportunity to serve on 
the panel today and offer my testimony. I must note that any views 
expressed today and in my written testimony are my own and may not 
necessarily reflect those of my employer or the institutions that 
participate in a multi-stakeholder partnership of which I am proud to 
serve in a leadership role.

    I serve as the Population Health and Data Science Lead at the Duke 
Institute for Health Innovation (DIHI for short) and the co-lead of 
Health AI Partnership. I studied mathematics and health policy before 
completing medical training and have been developing and implementing 
AI technologies for over a decade.

    Since DIHI's founding in 2013, our team has led the development and 
responsible implementation of over 20 AI technologies for clinical 
care.\1\ We were the first in the U.S. to implement a deep learning 
model in routine clinical care.\2\ We were the first to implement Model 
Facts labels (similar to nutrition facts labels) for AI tools that laid 
the groundwork for ONC's final rule on algorithm 
transparency.\3\, \4\ We have incubated four companies to 
commercialize AI products built at Duke and we help health-care 
organizations across the country validate these technologies.
---------------------------------------------------------------------------
    \1\ Sandhu S, Sendak MP, Ratliff W, Knechtle W, Fulkerson WJ, Balu 
S. Accelerating health system innovation: principles and practices from 
the Duke Institute for Health Innovation. Patterns. 2023;4(4):100710.
    \2\ Sendak MP, Ratliff W, Sarro D, Alderton E, Futoma J, Gao M, et 
al. Real-World Integration of a Sepsis Deep Learning Technology Into 
Routine Clinical Care: Implementation Study. JMIR medical informatics. 
2020 Jul 15;8(7):e15182.
    \3\ Sendak MP, Gao M, Brajer N, Balu S. Presenting machine learning 
model information to clinical end users with model facts labels. npj 
Digital Medicine. 2020 Mar 15;3(41):1-4.
    \4\ https://www.healthit.gov/topic/laws-regulation-and-policy/
health-data-technology-and-interoperability-certification-program.

    Our team has demonstrated the benefits of AI in health care. Duke 
dramatically improved the quality of sepsis care using our Sepsis Watch 
system.\5\ Duke proactively manages chronic diseases in Medicare 
patients by using AI to identify patients at risk of complications.\6\ 
Duke has now extended this chronic disease management approach to all 
patients.
---------------------------------------------------------------------------
    \5\ https://www.wsj.com/articles/how-hospitals-are-using-ai-to-
save-lives-11649610000.
    \6\ Sendak MP, Balu S, Schulman KA. Barriers to Achieving Economies 
of Scale in Analysis of EHR Data. A Cautionary Tale. Applied Clinical 
Informatics. 2017 Aug 9;8(3):826-31. Available from: https://
www.thieme-connect.com/products/ejournals/abstract/10.4338/ACI-2017-03-
CR-0046.

    But my comments today will not focus on the amazing work I've been 
a part of at Duke. Today, I'm speaking with you primarily as the co-
---------------------------------------------------------------------------
lead of Health AI Partnership.

    In 2018, a mentor asked me ``how do we get AI out of the ivory 
tower?'' At that time, my experience with AI at Duke was unimaginable 
to people outside a few exceptional islands of excellence. And there 
was minimal building of infrastructure to advance the use of AI in low-
resource settings.

    In 2021, I helped launch Health AI Partnership to advance the safe, 
effective, and equitable use of AI in all health-care organizations. We 
exist to get AI out of the ivory tower.

    The Senate Finance Committee can take concrete action to advance 
accountability, equity, privacy, and transparency in the use of AI in 
health care. The Medicare program ensures the delivery of high-quality 
care for beneficiaries through conditions of participation and other 
mechanisms. There is a unique opportunity for this committee to 
strengthen Medicare controls on the use of AI and to facilitate 
investments in technical assistance, technical infrastructure, and 
training.

    First, we can address guard rails.

    Through Health AI Partnership, we work with 20 organizations across 
the U.S. to surface and disseminate AI best practices. We interview 
leaders and run case-based workshops on complex topics. We develop 
practical resources for health-care leaders asking basic questions: how 
do I evaluate different externally built AI products? How do I navigate 
the new FDA clinical decision support guidance? How do I assess the 
potential future impact of this AI product on health inequities? How do 
I align organizational processes with the White House Blueprint for an 
AI Bill of Rights?

    Health AI Partnership resources and programs provide guardrails for 
high-
resource organizations that are rapidly accelerating their use of AI. 
Adoption of these guard rails by hospitals could be required for 
Medicare program participation. But guard rails only serve the few 
organizations that are already on the AI adoption highway.

    We must also address the more critical need for roads, onramps, and 
bridges--the core infrastructure investments needed to ensure that all 
people in the U.S. benefit from AI in health care.

    Most health-care organizations in the U.S. need an on ramp to the 
AI adoption highway. They are struggling with clinician burnout. They 
face razor thin or negative margins. They are entirely dependent on 
external EHR vendors for technology expertise and assistance. Simply 
put, they do not have the resources, personnel, or technical 
infrastructure to embrace guardrails for the AI adoption highway.

    Core infrastructure investments are needed for technical 
assistance, technology infrastructure, and training:

          Technical Assistance: A national hub-and-spoke network is 
        needed to diffuse AI expertise beyond centers of expertise to 
        low-resource settings. Hubs can provide operational and 
        technical support to sites implementing AI, similar to existing 
        programs that extend specialist expertise to low-resource 
        settings.\7\, \8\
---------------------------------------------------------------------------
    \7\ https://projectecho.unm.edu/.
    \8\ https://dason.medicine.duke.edu/.

          Technology Infrastructure: Technology infrastructure that is 
        distinct from EHRs is required to facilitate the efficient 
        evaluation and clinical integration of AI tools. This 
        infrastructure allows sites to test many AI products 
        simultaneously with ongoing monitoring. Without addressing this 
        capital investment, a market failure will continue preventing 
        AI developers from efficiently commercializing products.\9\
---------------------------------------------------------------------------
    \9\ https://www.statnews.com/2022/05/24/market-failure-preventing-
efficient-diffusion-health-care-ai-software/.

          Training programs: Broadly accessible programs targeting 
        clinical, technical, and operational leaders are urgently 
        needed to equip the health-care workforce with the foundational 
        knowledge required to locally govern AI. Health care will 
        increasingly become AI-enabled and local AI governance will be 
---------------------------------------------------------------------------
        a core competency.

    Congress has tackled this type of challenge before. Fifteen years 
ago, Congress enabled the broad adoption of EHRs through funding 
technical assistance programs and technology infrastructure 
investments.\10\ That funding supported the purchase of EHRs along with 
62 regional extension centers to support EHR implementations in low-
resource settings. While EHRs are far from perfect, Federal programs 
did successfully diffuse the technology across the country. We need 
similarly bold action now.
---------------------------------------------------------------------------
    \10\ Lynch K, Kendall M, Shanks K, Haque A, Jones E, Wanis MG, et 
al. The Health IT Regional Extension Center Program: Evolution and 
Lessons for Health Care Transformation. Heal Serv Res. 
2014;49(1pt2):421-37.

    Enacting Medicare controls and infrastructure investments to 
advance the safe, accountable, equitable, private, and transparent use 
of AI in health care will take time and be iterative. I look forward to 
continuing to share learnings from Health AI Partnership and am eager 
---------------------------------------------------------------------------
to support future work conducted by the Senate Finance Committee.

    Thank you, again, for this opportunity, and I look forward to 
answering your questions.

                                 ______
                                 
      Questions Submitted for the Record to Mark Sendak, M.D., MPP
                 Questions Submitted by Hon. Ron Wyden
    Question. For years I've been insisting that companies need to step 
up and assess the impacts of the AI systems they develop, which is what 
my Algorithmic Accountability Act would require. Unfortunately, many 
companies have done far too little to make sure their automated black-
box systems really work and do not amplify bias and discrimination. 
Right now, neither the public nor the government knows when, whether, 
or how AI systems are being used to make critical decisions about 
Americans' homes, finances, and jobs. Especially in health care, where 
AI systems can directly impact the health of Americans, accountability 
and transparency are absolutely critical.

    What rules should companies building AI tools for health care abide 
by? What should we expect of providers who use AI tools?

    Answer. Companies that build and implement AI tools for health care 
should:

          Transparently share information about the AI tool with 
        health care delivery organizations (HDO) and the public. 
        Information about the AI tool to curate and transparently 
        report can align with the Health Data, Technology, and 
        Interoperability (HTI-1) final rule: https://www.healthit.gov/
        topic/laws-regulation-and-policy/health-data-technology-and-
        interoperability-certification-program. Information should 
        include how the tool was built, the intended use of the tool, 
        how the tool should be integrated into clinical workflows, 
        information about the data used to train the model, as well 
        procedures to assess the potential impact of the AI tool on 
        health inequity. The Health Equity Across the AI Lifecycle 
        (HEAAL) framework describes potential procedures to complete to 
        assess health equity impacts of AI tools: https://
        www.medrxiv.org/content/10.1101/2023.10.16.23297076v5.

          Provide an interface for clinicians, patients, HDO leaders, 
        and other affected stakeholders to report adverse events 
        related to use of the AI tool. The company should provide 
        periodic public disclosure of adverse events as well as any 
        action taken to improve AI product performance and use. If the 
        company becomes aware of an issue that can cause harm to 
        patients, the company should immediately report the issue to 
        clinicians, patients, and HDOs that use the tool.

          Provide technical assistance, training, and technical 
        infrastructure capabilities to support HDOs rigorously evaluate 
        and monitor the AI product.

    Specific HDO activities that the company should support include:

          Assess the performance of the AI tool on historical data 
        within the implementation context. The company should provide 
        guidance on performance thresholds that support progressing to 
        a ``silent trial.''

          Conduct a ``silent trial'' in which the AI tool is run 
        prospectively and not used clinically within the implementation 
        context. The company should provide guidance on performance 
        thresholds that support clinical integration.

          Continuously monitor performance of an AI tool that is 
        clinically integrated. The company should provide guidance on 
        performance thresholds that support continued clinical use.

    HDOs that use AI tools should:

          Adopt best practices for AI product lifecycle management, 
        such as those set out by Health AI Partnership: https://
        healthaipartnership.org. A third-party entity can assess HDO 
        implementation and adoption of the best practices to ensure 
        that HDOs rapidly strengthen internal controls. Market 
        incentives should reward HDOs that successfully adopt AI 
        product lifecycle management best practices.

          Establish a risk-based formal review and approval process 
        for clinical and operational AI product use. High-risk use 
        cases should be subject to additional scrutiny and controls.

          Conduct multiple forms of AI product assessments, including:

              Assess the performance of the AI tool on 
        historical data within the implementation context. The HDO 
        should publicly report a subset of the performance measure 
        data.

              Conduct a ``silent trial'' in which the AI 
        tool is run prospectively and not used clinically within the 
        implementation context. The HDO should publicly report a subset 
        of the performance measure data.

              Continuously monitor performance of an AI 
        tool that is integrated into clinical care or operations. The 
        HDO should publicly report a subset of the performance measure 
        data.

          There must be market incentives to support HDO procurement 
        and maintenance of technical infrastructure required to conduct 
        the AI product testing described today. These resources should 
        be separate from reimbursement for AI product adoption and 
        should be considered infrastructure investments. For more on 
        the need for these investments, please see: https://
        www.statnews.
        com/2022/05/24/market-failure-preventing-efficient-diffusion-
        health-care-ai-software/.

          Publicly report significant changes in AI product 
        performance that are observed after clinical integration of the 
        tool. This information should be shared with a third-party 
        entity that curates and aggregates information from HDOs across 
        the country.

          Periodically audit AI tools used in clinical care and 
        operations. The HDO can work with a third-party entity to 
        conduct the audit and there should be market incentives to 
        support completion of the algorithmic audit. A subset of the 
        audit results should be publicly reported.

          Publicly disclose high-risk AI tools that are used in 
        clinical care or operations. Information about the tool should 
        be presented in a format that is useful to patients and 
        addresses questions and concerns that patients have about the 
        AI tool. Health care delivery organizations can adopt a risk-
        based approach to focus disclosure efforts on AI use cases that 
        are at high-risk of worsening health inequities, target high-
        risk conditions, and play a significant role shaping access to 
        health care and delivery of health care.

    Question. There has been significant concern raised about racial 
and other biases in predictive algorithms. In 2022, I urged my home 
State of Oregon to stop using its AI screening tool because of reports 
that Black families were being disproportionately referred for 
mandatory child neglect investigations when the tool was used. I am 
glad that Oregon paused the use of their tool. Making decisions about 
families is too important to use tools that aren't ready for prime time 
and bake in bias.

    What steps does Congress need to take to ensure that child welfare 
agencies are using AI and predictive algorithms in responsible and 
ethical ways, avoiding bias, and ensuring privacy protection for the 
personal data of children and families?

    Answer. Congress should:

          Require developers of AI products used by child welfare 
        agencies to transparently report information about the AI 
        product. Information about the AI tool to curate and 
        transparently report can align with the Health Data, 
        Technology, and Interoperability (HTI-1) final rule: https://
        www.healthit.gov/topic/laws-regulation-and-policy/health-data-
        technology-and-interoperability-certification-program. 
        Information should include how the tool was built, the intended 
        use of the tool, how the tool should be integrated into 
        clinical workflows, information about the data used to train 
        the model, as well procedures to assess the potential impact of 
        the AI tool on health inequity. The Health Equity Across the AI 
        Lifecycle (HEAAL) framework describes potential procedures to 
        complete to assess health equity impacts of AI tools: https://
        www.medrxiv.org/content/10.1101/2023.10.16.23297076v5.

          Require developers of AI products used by child welfare 
        agencies to provide an interface for front-line service 
        providers and affected members of the public to report adverse 
        events related to use of the AI tool. The company should 
        provide periodic public disclosure of adverse events as well as 
        any action taken to improve AI product performance and use. If 
        the company becomes aware of an issue that can cause harm to 
        members of the public, the company should immediately report 
        the issue to child welfare agencies that use the tool.

          Require child welfare agencies to publicly disclose high-
        risk AI tools that are used in service delivery or operations. 
        Information about the tool should be presented in a format that 
        is useful to the public and addresses questions and concerns 
        that members of the public have about the AI tool.

          Require child welfare agencies to conduct multiple forms of 
        AI product assessments, including:

              Assess the performance of the AI tool on 
        historical data within the implementation context. The child 
        welfare agency should publicly report a subset of the 
        performance measure data.

              Conduct a ``silent trial'' in which the AI 
        tool is run prospectively and not used clinically within the 
        implementation context. The child welfare agency should 
        publicly report a subset of the performance measure data.

              Continuously monitor performance of an AI 
        tool that is integrated into clinical care or operations. The 
        child welfare agency should publicly report a subset of the 
        performance measure data.

          Require child welfare agencies to periodically audit AI 
        tools used in service delivery and operations. The child 
        welfare agency can work with a third-party entity to conduct 
        the audit and there should be market incentives to support 
        completion of the algorithmic audit. A subset of the audit 
        results should be publicly reported.

    Beyond child welfare, Congress can require that organizations that 
provide health and human services conduct health equity impact 
assessments for high-risk AI applications. Health AI Partnership 
convened leaders from HDOs across the United States to present real-
world cases of AI being evaluated for clinical use and surfaced a set 
of procedures across the AI product lifecycle to mitigate the risk of 
worsening health inequities. The resultant framework is called Health 
Equity Across the AI Lifecycle and it can be found here: https://
www.medrxiv.org/content/10.1101/2023.10.16.23297076v5. Congress can 
require that for certain high-risk applications, organizations that 
provide health and human services conduct the procedures and publicly 
report a subset of the results. There are significant costs associated 
with conducting the health equity impact assessments and Congress 
should provide market incentives for organizations to conduct the 
assessments.

                                 ______
                                 
               Questions Submitted by Hon. Chuck Grassley
    Question. Do the Centers for Medicare and Medicaid Services (CMS) 
have the capability to determine an accurate and fair reimbursement 
level for artificial intelligence technologies, so we don't waste 
taxpayer money?

    Answer. The capability to determine accurate and fair reimbursement 
for AI requires both personnel and high-quality, granular, real-world 
performance data. CMS should prioritize reimbursement for AI products 
that generate value in real-world HDO implementation contexts. Given 
that AI product performance can vary across HDO contexts, HDOs should 
regularly report AI product performance data to CMS. If the performance 
of an AI product changes within a HDO implementation context and the 
product no longer generates value, CMS should adjust payment rates to 
the HDO accordingly.

    CMS should convene stakeholders across clinical, technical, and 
business domains to assess the value creation and value capture of AI 
products being considered for clinical and operational use. This 
interdisciplinary advisory group could complement and augment the 
Medicare Payment Advisory Committee (MedPAC), which advises the U.S. 
Congress on issues affecting the Medicare program (https://www.medpac.
gov/). The advisory group should include community and patient 
representatives who are affected by AI use in health care.

    CMS, along with other HHS agencies, will greatly benefit from the 
National AI Talent Surge announced in the executive order on the Safe, 
Secure, and Trustworthy Development and Use of Artificial Intelligence. 
There is an urgent need to increase the hiring and retention of 
clinical and technical experts with practical experience developing, 
implementing, and maintaining AI products used in clinical care. 
Congress should continue to fund and expand efforts that expand CMS 
capabilities in AI.

    Given that AI will become increasingly integral to health-care 
delivery, CMS needs to develop a business model for AI reimbursement 
that accounts for the total product lifecycle of AI tools. There are 
significant costs associated with the development and maintenance of 
technical infrastructure required to ensure that AI advances safe, 
effective, and equitable care. These costs are fixed and often 
represent capital investments that are amortized across many AI 
applications.

    Question. We spent about $4.5 trillion in health care last year. A 
key area of waste in our health-care system is medical errors, failure 
of care delivery, and over-treatment. Some estimates suggest we waste 
$205 billion to $425 billion each year due to medical errors and waste.

    What potential does deploying artificial intelligence to review 
clinical decisions have in reducing medical errors and waste? Are you 
aware of existing practices and can we scale them?

    Answer. There are many applications of clinical decision support 
(CDS) that target acute conditions to both improve detection and 
coordinate appropriate and timely intervention. These CDS technologies 
often use AI to predict complications before they occur and serve as a 
safety net to catch clinical deterioration that may be missed by 
burdened front-line clinicians. An example of this type of system at 
Duke Health is Sepsis Watch, which monitors the care provided to all 
adult patients who present to the emergency department. Sepsis Watch is 
used by a centralized team of nurses to identify patients at risk of 
deterioration who are in need to evidence-based interventions. The 
nurses support front-line clinicians to complete relevant treatment 
interventions. In order to scale a tool like this, there needs to be 
reimbursement for health care delivery organizations (HDOs) to run the 
tool, the technical infrastructure required to integrate the AI product 
into the electronic health record and to monitor performance of the AI 
product, and the personnel required to utilize the AI product to 
support front-line clinicians.

    In a fee-for-service payment environment, medical errors and 
medical complications can serve as a source of revenue for HDOs. 
Reimbursement models need to be established to fund the integration and 
diffusion of AI products that prevent errors and medical complications.

    Clinician burnout remains alarmingly high and provider burden is a 
main driver of medical errors and medical complications. Large language 
models (LLMs) provide an opportunity to leverage AI to relieve the 
documentation and administrative burden placed on front-line 
clinicians. For example, AI scribe technologies are being adopted by 
HDOs to draft visit notes from recordings of clinic encounters. These 
technologies can be validated and scaled through reimbursement 
mechanisms that facilitate adoption.

                                 ______
                                 
                Questions Submitted by Hon. John Cornyn
    Question. The number of Americans living with chronic diseases is 
expected to increase as our population ages. The NIH estimates that by 
2050 there will be nearly 143 million Americans over 50 living with at 
least one chronic disease. This is up from about 72 million Americans 
in 2020. Such a dramatic increase will put even more pressure on the 
Medicare system. AI has the possibility of helping providers more 
efficiently identify patients at risk of chronic diseases. This could 
include patients at risk of developing type 2 diabetes or other 
preventable diseases.

    In your testimony you mentioned some of the work Duke is doing to 
proactively manage chronic diseases in Medicare patients.

    Can you talk more about some of the successes you have seen in 
using AI to identify and prevent chronic diseases?

    Answer. Duke Health develops and implements numerous AI tools to 
predict chronic disease progression to intervene and prevent 
downstream, costly complications. We have done this through a 
combination of technology and workflow innovation, developing a process 
called population rounding where an interdisciplinary team reviews 
high-risk patients and sends tailored recommendations to primary care 
physicians. For example, we implemented a chronic kidney disease 
algorithm to facilitate interventions that prevent kidney failure, a 
peripheral artery disease algorithm to prevent lower limb amputations, 
a cardiovascular risk algorithm to prevent heart attacks, and a 
mortality algorithm to facilitate advance care planning and community-
based palliative care. These AI products were all implemented within a 
Medicare Shared Savings Program accountable care organization, which 
creates financial incentives for prevention of chronic disease 
progression.

    Duke Health is a national leader in the development and scaling of 
AI governance, which supports the use of AI for chronic disease 
management. Clinical and technical teams across the health enterprise, 
school of medicine, and university campus collaborate closely to 
operate the Algorithmic-Based Clinical Decision Support oversight. The 
effort involves leadership from DIHI, Duke AI Health, and Duke Health 
Technology Solutions. Duke AI Health connects, strengthens, amplifies, 
and grows multiple streams of theoretical and applied research on AI 
and machine learning at Duke University in order to answer the most 
urgent and difficult challenges in medicine and population health.

    Question. What are the opportunities you see for using AI to lower 
Medicare costs for seniors?

    Answer. Opportunities to use AI to lower Medicare costs include:

          Leverage AI to tailor disease monitoring and surveillance to 
        individual patient risk to move beyond coarse screening 
        protocols. This could reduce the amount of unnecessary and low-
        value testing.

          Leverage AI to monitor patients at home through remote 
        sensors. Enhanced remote monitoring can detect physiologic 
        deterioration early to prompt telemedicine interventions and 
        prevent progression that would result in acute care visits and 
        hospital admissions.

          Leverage AI to route patients to appropriate care setting 
        based on data gathered through remote sensors as well as 
        through LLM interactions. This can help ensure that patients 
        who need acute care have their care rapidly escalated and can 
        also help prevent unnecessary emergency department visits and 
        hospital admissions.

          Leverage AI to optimize medical prescriptions to lowest cost 
        therapeutic options that are effective for patients.

          Leverage AI to assess risk of surgical complications to 
        optimize preoperative conditioning and to route patient to most 
        cost-effective operative setting. This can help route patients 
        at low risk of complication to ambulatory surgery centers and 
        route patients at high risk of complication to inpatient 
        surgery units.

          Patients would need to consent to use of data for these 
        purposes and for interactions with LLMs.

                                 ______
                                 
                 Question Submitted by Hon. John Thune
    Question. It is important to me as the Senate considers different 
approaches to regulating AI, that we don't create duplicative 
regulatory pathways. For example, the FDA already has a pathway in 
place to regulate types of AI, such as software as a medical device.

    At the same time, the regulatory agencies also need to make 
continual improvements to their processes to address updates to the 
technology and there is a need for technical support and guidance to 
navigate these processes.

    In your written testimony you highlight the need for a hub-and-
spoke network to diffuse AI expertise and technical support. My bill 
supports this approach as well.

    Can you expand on what the hub-and-spoke model might look like and 
why it is important?

    Answer. The performance of an AI product across health care 
delivery organization (HDO) contexts can be highly variable and dynamic 
and depend on multiple factors including information technology (IT) 
systems, clinical workflows, patient populations, and local 
epidemiology. Even if an HDO confirms that an AI product performs well, 
the tool must be continuously monitored to ensure that performance 
remains consistent. For these reasons, it is critical for HDOs to be 
able to locally validate and monitor AI products used in clinical care 
and operations. This requires the rapid diffusion of capabilities and 
technology.

    A hub-and-spoke model would first formalize a network of ``hub'' 
sites that are mature in their use of AI products, agree upon best 
practices across the AI product lifecycle, share learnings to 
contribute to best practices for emerging challenges, and are committed 
to providing technical assistance and training to ``spoke'' sites that 
are early in their journey of AI adoption. A hub-and-spoke model is 
highly scalable and modular, facilitating expansion to new geographic 
regions, expansion to new medical conditions, and expansion to new 
generations of technology. A hub-and-spoke model can rapidly build 
capacity across diverse HDOs and rapidly stimulate economic growth to 
support the safe, effective, and equitable implementation of AI.

    A hub-and-spoke model is highly redundant, ensuring robust health-
care delivery and robust monitoring of AI product performance across 
contexts. For example, if a single ``hub'' is taken offline for 
technical or operational reasons, other ``hubs'' can step in to provide 
remote expertise and technical assistance to ``spoke'' sites trying to 
use AI. By facilitating redundancy, the hub-and-spoke model also 
facilitates rapid testing and experimentation of differing approaches 
to AI product lifecycle management. Given the speed of technology 
progress, providing ``hub'' sites flexibility in how they support 
``spoke'' sites allows for the rapid emergence and diffusion of best 
practices.

    A hub-and-spoke model spurs competition and innovation in the AI 
product development ecosystem by providing multiple avenues of market 
entry. By decentralizing control over market access across the network 
of hub-and-spoke sites, AI product developers can more easily develop 
products that target markets that may initially be quite niche.

    A hub-and-spoke model can surface best practices for AI product use 
much more rapidly than centralized AI product testing and validation. 
For example, ``hub'' sites can individually demonstrate success for a 
given AI product use case to facilitate diffusion across the network. 
This allows many different sites to operate in parallel to test and 
diffuse best practices.

    Lastly, while centralized AI product testing may seem more cost-
effective and efficient, it does not scale. The number of HDOs that 
need to locally validate and monitor AI products is in the thousands 
and the number of AI products coming to market is growing 
exponentially. Tight, central control over market access for AI 
products will significantly slow and stifle innovation and will limit 
the potential impact of AI on health care.

                                 ______
                                 
             Questions Submitted by Hon. Sheldon Whitehouse
    Question. Rhode Island has several health-care enterprises that we 
are very proud of, including the State-wide Rhode Island All-Payer 
Claims Database (RI APCD).

    What role can AI play with regard to maximizing the utility of a 
robust, All-Payer Claims Database?

    Answer. The all-payer claims database could be used to test AI 
products on diverse populations of patients. For example, AI product 
performance can be closely examined across demographic subgroups, 
disability status, socioeconomic status, and more. Given that the 
database is comprehensive for all individuals who live in Rhode Island, 
the database could be used to ensure that AI products perform well on 
historically marginalized subgroups.

    At the close of the Senate Finance Committee hearing, Chairman 
Wyden emphasized the importance of assessing bias in algorithms among 
Medicaid patients. Chairman Wyden noted that Medicaid barely came up 
during the hearing. There is a unique opportunity to leverage the Rhode 
Island claims database to conduct algorithmic bias analyses across both 
Medicare and Medicaid populations to characterize the differences in 
the types of biases across populations. Our team at the Duke Institute 
for Health Innovation would be happy to discuss ways of conducting 
health equity impact assessments for AI and emerging technologies.

    AI can be used to normalize and harmonize data across different 
payer groups within the all-payer claims database. Assuming that there 
are inconsistencies in how different health-care payers structure and 
transmit data, novel large language models (LLMs) can be used to map 
inconsistent data representations to standard terminologies and 
ontologies. This type of AI-supported data normalization could rapidly 
enhance the speed and efficiency with which public health and 
population health studies could be conducted.

    The all-payer claims database can be used to develop and validate 
AI products that model long-term, distal outcomes across the life 
course. For example, patients who have consistently lived within Rhode 
Island for decades could have continuous claims data captured in the 
database. This is a unique asset that could be used to model medical 
conditions that progress over decades, such as genetic conditions, 
mental illness, toxin exposures, traumatic brain injuries, HIV, and 
chronic disease.

    Question. Are you working in the development of AI with some of the 
medical specialty organizations (orthopedics, cardiologists, et 
cetera)? Are specialty organizations a useful place for benchmarking, 
approval, or accrediting best AI practices? And if they are, do you 
have any good examples of a medical specialty association that is being 
particularly forward and helpful at looking for the best uses of AI 
within the specialty?

    Answer. The American Medical Association is an ecosystem partner to 
Health AI Partnership and has been a critical partner helping inform 
and develop AI best practices. The AMA published initial policies 
related to augmented intelligence in 2018: https://www.ama-assn.org/
system/files/2019-08/ai-2018-board-report.pdf. More recently, the AMA 
published principles for AI development, deployment, and use: https://
www.ama-assn.org/system/files/ama-ai-principles.pdf.

    Some other examples of specialty society activities include:

          The American Academy of Family Physicians has done 
        phenomenal work examining the role of AI for documentation and 
        clinical review and summarization: https://www.aafp.org/family-
        physician/practice-and-career/managing-your-practice/health-it/
        innovation-lab.html.

          The American College of Radiology runs the AI Central 
        Database that aggregates information from hundreds of FDA-
        cleared medical devices to assist with product procurement 
        decisions: https://aicentral.acrdsi.org/.

          Interdisciplinary teams of experts are required to evaluate 
        AI products for safety, efficacy, and equity impacts. AI 
        applications in health care are sociotechnical systems and 
        alter the way patients and clinicians interact. In addition to 
        clinical and technical experts, social scientists, lawyers, 
        ethicists, and patients should be involved in AI product 
        evaluations and evaluations should be conducted within the 
        context of use. Many AI applications also span across clinical 
        domains and care delivery settings. For example, while 
        specialty groups often feel the pain point of poorly treated 
        medical conditions, AI product integration often requires 
        intervention upstream from clinical interactions with 
        specialists. The AI product often needs to be integrated in 
        primary care settings or be patient-facing to prompt preventive 
        action. We write about the need to align clinicians across the 
        care delivery spectrum as a primary opportunity to improve AI 
        product adoption on the front lines: https://
        sloanreview.mit.edu/article/ai-on-the-front-lines/.

    Question. Rhode Island has two, unusually good Accountable Care 
Organizations (ACOs).

    In what ways could artificial intelligence be used to support the 
ACO program?

    Answer. ACOs are uniquely positioned to benefit from AI product 
use, because financial incentives are aligned to prevent medical 
complications. AI products can predict events before they happen and 
give health care delivery organizations (HDOs) an opportunity to 
intervene early. Delivery of the early intervention may require costs 
associated with running the AI product, personnel effort to review 
high-risk patients, and up-front payment for medical interventions. But 
these payments can be more than recuperated if the AI intervention 
prevents a costly complication. For this reason, ACOs are well poised 
to prioritize use cases for AI, test AI products in real-world 
settings, and diffuse AI products that create real-world value.

    ACOs can also use AI to lower costs by considering the following:

          Leverage AI to tailor disease monitoring and surveillance to 
        individual patient risk to move beyond coarse screening 
        protocols. This could reduce the amount of unnecessary and low-
        value testing.

          Leverage AI to monitor patients at home through remote 
        sensors. Enhanced remote monitoring can detect physiologic 
        deterioration early to prompt telemedicine interventions and 
        prevent progression that would result in acute care visits and 
        hospital admissions.

          Leverage AI to route patients to appropriate care setting 
        based on data gathered through remote sensors as well as 
        through LLM interactions. This can help ensure that patients 
        who need acute care have their care rapidly escalated and can 
        also help prevent unnecessary emergency department visits and 
        hospital admissions.

          Leverage AI to optimize medical prescriptions to lowest cost 
        therapeutic options that are effective for patients.

          Leverage AI to assess risk of surgical complications to 
        optimize preoperative conditioning and to route patient to most 
        cost-effective operative setting. This can help route patients 
        at low-risk of complication to ambulatory surgery centers and 
        route patients at high-risk of complication to inpatient 
        surgery units.

          Patients would need to consent to use of data for these 
        purposes and for interactions with LLMs.

                                 ______
                                 
         Prepared Statement of Peter Shen, Head of Digital and 
           Automation for North America, Siemens Healthineers
                                summary
      Siemens Healthineers is a leading medical technology company 
with more than 120 years of history and experience bringing 
breakthrough innovations to market that enable health-care 
professionals to deliver the best care for patients--from prevention 
and early detection, to diagnosis, treatment planning and delivery, and 
follow-up care. Our core portfolio includes imaging, diagnostics, 
comprehensive cancer care and minimally invasive therapies, augmented 
by AI.

      Siemens Healthineers has been working on applying AI into 
medical technology for more than 20 years.

      To ensure we develop reliable algorithms that are reflective of 
the patient populations they will be applied towards, we continually 
maintain a holistic view of the patient with high-quality training 
data. This training data is based on a balanced cohort of people of 
different ages, genders, ethnicities, healthy people, and those who are 
sick.

      We recently partnered with the American College of Radiology 
(ACR) to improve transparency and patient care through the launch of 
the Transparent-AI program. We disclose detailed product information, 
including training data demographics and machine specifications, to 
help radiologists choose tools that meet their specific patient 
population needs.

      AI in health care can take two dominant forms--AI for 
operational or workflow improvements that help reduce physician burden 
and improve patient experience, and AI for clinical services. We refer 
to clinical AI as Algorithm Based Healthcare Services (ABHS), which are 
analytical services delivered by FDA-cleared devices that use AI, 
machine learning or other similarly designed software to produce 
clinical outputs for physicians to use in the diagnosis or treatment of 
disease.

      Siemens Healthineers has over 80 FDA-cleared products on the 
market that represent groundbreaking innovations for patients. One of 
our cleared products, AI-Rad Companion \1\ is our dominant AI platform 
that highlights, characterizes, measures, and reports clinical 
abnormalities to aid the clinician in formulating a diagnosis and 
treatment.
---------------------------------------------------------------------------
    \1\ General Availability Disclaimer for AI-Rad Companion: AI-Rad 
Companion consists of several products that are (medical) devices in 
their own right, and products under development. AI-Rad Companion is 
not commercially available in all countries. Its future availability 
cannot be ensured.

      AI has enormous potential to improve access to care, diagnose 
disease faster and more precisely, and enable physicians to make 
treatment decisions based on comprehensive access to patient data in 
---------------------------------------------------------------------------
real-time.

    Chairman Wyden, Ranking Member Crapo, and distinguished members of 
the committee, on behalf of Siemens Healthineers, our 17,000 employees 
in the U.S., and approximately 71,000 employees in over 70 countries 
globally, thank you for the opportunity to testify today on the topic 
of artificial intelligence (AI) in health care. My name is Peter Shen, 
and I am the North America head of digital and automation for Siemens 
Medical Solutions USA, Inc.--also known as Siemens Healthineers. My 
career focus is on the introduction of new and emerging technologies in 
the health-care market, including in imaging, data analytics, digital 
ecosystems, and AI. My degree is in biomedical engineering and 
mathematical sciences from Johns Hopkins University.

    Siemens Healthineers is a leading medical technology company with 
more than 120 years of history and experience bringing breakthrough 
innovations to market that enable health-care professionals to deliver 
the best care for patients--from prevention and early detection, to 
diagnosis, treatment planning and delivery, and 
follow-up care. Our core portfolio includes imaging, diagnostics, 
comprehensive cancer care and minimally invasive therapies, augmented 
by AI. We focus on addressing the deadliest diseases impacting the 
United States (U.S.), including cancer, neurovascular, 
neurodegenerative, and cardiovascular diseases. We partner with more 
than 90 percent of providers in health care and in addition to the 
medical devices we provide, we also work to address population growth 
and chronic disease prevalence, health-care workforce shortages and 
lack of access to care in underserved areas throughout the U.S., and 
globally. Given the depth and diversity of our product portfolio, we 
have the distinction of being the only medical technology company in 
the world capable of end-to-end cancer care--from diagnosis and 
screening to treatment and survivorship. This is a responsibility we 
take very seriously, and we keep patients at the center of everything 
we do.

    We are committed to creating jobs in the U.S. and fostering 
community engagement. Our U.S. headquarters is in Malvern, PA. Our 
global headquarters for diagnostics is in Tarrytown, NY, and we have 
laboratory diagnostics manufacturing facilities that serve customers 
worldwide in both Walpole, MA and Glasgow, DE. Our global headquarters 
for molecular imaging is in Hoffman Estates, IL. Cary, NC is home to 
our training center, where we train thousands of engineers annually, 
including active service members. Our AI research and development team 
is housed in Princeton, NJ. Our Varian business is headquartered in 
Palo Alto, CA. We also have manufacturing, engineering, and research 
and development sites in Washington, Indiana, Tennessee, Nevada, and 
Colorado.

    Each day, an estimated 5 million patients benefit from our 600,000 
cutting-edge technologies and services worldwide. Data, digitalization, 
and AI to improve patient care is at the core of the work we do every 
day, and who we are as a company.
      siemens healthineers ai experience and algorithm development
    Siemens Healthineers has been working on applying AI into medical 
technology for more than 20 years. At our Big Data Office in the U.S., 
we created and maintain one of the most powerful supercomputing 
infrastructures dedicated to developing algorithms. This infrastructure 
allows our research scientists to collect, prepare and organize correct 
and secure medical data--including more than 2.1 billion curated images 
from more than 200 clinical providers and partners--needed to train and 
deliver accurate AI.

    From its inception, we created and maintain a quality assurance 
process, which involves clinical validation to both understand the 
treatment outcomes associated with the curated data as well as 
guarantee the data being used to train our algorithms is accurate for 
diagnosing and treating disease. To ensure we develop reliable 
algorithms that are reflective of the patient populations they will be 
applied towards, we continually maintain a holistic view of the patient 
with high-quality training data. This training data is based on a 
balanced cohort of people of different ages, genders, ethnicities, 
healthy people, and those who are sick. From the inception of data 
collection, we work to build algorithms that are reliable, accurate, 
unbiased, and protect the patient.

    We take great pride in the work we do to develop reliable AI and 
have company-wide guard rails for AI that I have included in an 
addendum to this testimony. In addition, we have recently partnered 
with the American College of Radiology (ACR) to improve transparency 
and patient care through the launch of the Transparent-AI program. We 
disclose detailed product information, including training data 
demographics and machine specifications, to help radiologists choose 
tools that meet their specific patient population needs. ACR's public 
website includes comprehensive information on our FDA-cleared AI 
imaging products.

    Partnering with physicians is essential to the adoption of AI, and 
its ability to be a powerful clinical tool to drive better patient 
outcomes.
                               regulation
    Our algorithms go through a regulatory approval process with the 
Food and Drug Administration (FDA). We follow all AI/Machine Learning 
(ML)-enabled medical device regulatory requirements for premarket 
review and postmarket surveillance to ensure the safety and efficacy of 
our devices. We also engage with the FDA regularly on AI/ML and provide 
feedback on ways to ensure the continued safe and effective application 
of these technologies. In this regard, our AI is distinct from 
unregulated AI products.

    With the rapid acceleration in development and innovation of AI, 
the need for the regulatory environment to be able to balance safety, 
effectiveness, as well as update and improve functionality, without 
hampering innovation and adoption is critical. While we believe the 
current regulatory framework is sufficient to support AI innovation, we 
support the continuation of flexibility in the approval process, as a 
one-size-fits-all approach could seriously inhibit the potential of AI, 
as well as efforts to facilitate global harmonization and the 
development of appropriate international consensus standards.

    Additionally, Siemens Healthineers recognizes the importance of 
continuing to address unintentional potential bias in AI. We feel that 
these concerns are currently addressed for applications in medical 
devices and mitigated under existing risk management processes, quality 
systems, and compliance with regulatory requirements from the FDA and 
other regulators.
                          the patient journey
    The patient journey is at the heart of Siemens Healthineers AI 
work. AI is already improving care for patients. Patients undergoing a 
CT (Computed Tomography) scan for lung cancer screening can be better 
positioned in the CT scanner to help optimize the resulting generated 
images, while minimizing the time the patient spends in the scanner. 
This is done by AI that is built into our CT scanner technology that 
allows our machines to identify human anatomy. Radiologists reviewing 
the resulting lung cancer screening CT images can utilize our AI-guided 
computer software as a companion to the clinician to identify small 
nodules and other abnormalities, including the ability to measure the 
density and characterize the size of suspicious nodules that were 
previously not possible to visualize without the assistance of AI.

    Suspicious lung nodules diagnosed to be cancerous by the clinician 
can potentially be treated by radiation therapy. To minimize the risk 
that healthy tissue around the cancer is not unnecessarily radiated, 
radiation physicists create a radiation treatment plan, which includes 
the tedious task of manually drawing the unique contours of the 
cancerous tumor. This manual contouring potentially delays the time to 
treatment for the patient. Our AI-enabled auto-contouring software can 
automatically detect these contours of the cancerous area, 
significantly speeding up the patient's time to treatment and 
potentially eliminating extraneous treatments.

    Utilizing AI at each point in the process to screen, diagnose and 
treat lung cancer can reduce the time to treatment. This allows for a 
reduction in patient stress and anxiety, more precise and faster 
diagnosis, and more specialized treatment that we believe will improve 
patient outcomes.
              algorithm-based health-care services (abhs)
    AI in health care can take two dominant forms--AI for operational 
or workflow improvements that help reduce physician burden and improve 
patient experience, and AI for clinical services. We refer to clinical 
AI as Algorithm-Based Health-care Services (ABHS), which are analytical 
services delivered by FDA-cleared devices that use AI, machine learning 
or other similarly designed software to produce clinical outputs for 
physicians to use in the diagnosis or treatment of disease. They 
provide quantitative and qualitative analyses, including new, 
additional clinical outputs that detect, analyze or interpret data to 
improve screening, detection, diagnosis and treatment. ABHS are 
developing rapidly and represent an additional service provided to the 
patient to deliver the best care possible. These are clinical uses of 
AI that have a separate and distinct place within the health-care AI 
conversation.

    Siemens Healthineers has over 80 FDA-cleared products on the market 
that represent groundbreaking innovations for patients. One of our 
cleared products, AI-Rad Companion \2\ is our dominant AI platform that 
highlights, characterizes, measures, and reports clinical abnormalities 
to aid the clinician in formulating a diagnosis and treatment. This 
ABHS supports physician decisions in diagnosing disease based on 
imaging scans.
---------------------------------------------------------------------------
    \2\ General Availability Disclaimer for AI-Rad Companion: AI-Rad 
Companion consists of several products that are (medical) devices in 
their own right, and products under development. AI-Rad Companion is 
not commercially available in all countries. Its future availability 
cannot be ensured.

    For instance, ABHS can be an important service when used to 
diagnose neurodegenerative diseases. Brain morphometry, or changes in 
brain volume over time, can be a powerful predictor of 
neurodegenerative diseases, such as Alzheimer's, but neurologists are 
challenged with needing actionable, patient-specific volumetric data to 
diagnose and treat the patient more accurately. AI-Rad Companion (AIRC) 
Brain MR can automatically segment different structures of the brain on 
an MRI image, measure their volumes, and compare these volumes to data 
in a brain database from the Alzheimer's Disease Neuroimaging 
Initiative (ADNI). The AI-Rad Companion Brain MR feeds these 
comparative results into a report where deviations in volume from the 
norm are highlighted, enabling the radiologist to provide additional 
quantitative information to the neurology department, so that they can 
make a more accurate and informed diagnosis and treatment--resulting in 
better patient outcomes. AIRC Brain MR provides an additional service 
to the patient, and the physician receives essential information to 
diagnose neurodegenerative diseases that would be impossible without 
---------------------------------------------------------------------------
AI.

    Another example of the benefit of ABHS is particularly relevant 
when discussing prostate cancer. Traditionally, a urologist identifies 
suspected areas of prostate cancer by manually reviewing written 
reports and pictograms of the prostate provided by radiology and as 
needed, acquires tissue samples from the areas in question using 
ultrasound-guided biopsy. We are developing an algorithm which is 
planned to be part of the AI-Rad Companion product family, which will 
automatically segment suspect areas of the prostate and characterize 
and measure suspicious lesions in the prostate from MRI images. This 
qualitative and quantitative analysis may support the urologist's 
decision on whether a tissue biopsy is additionally required for 
diagnosis or if such invasive procedure can be avoided, which is 
significant in managing a prostate cancer patient's well-being and 
minimizing unnecessary costs within the health system. This ABHS takes 
much of the gray area involved with prostate cancer, particularly when 
it comes to active patient monitoring, and provides a health-care 
service through data that the physician would not otherwise have to 
allow a more informed diagnosis and treatment decision.

    These Siemens Healthineers AI healthcare services provide 
clinicians with otherwise unavailable quantitative and qualitative 
clinical data that allows them to make a more informed decision, 
resulting in better patient outcomes. However, these ABHS are not 
consistently reimbursed by the Centers for Medicare and Medicaid 
Services (CMS). Guaranteeing a consistent reimbursement process would 
empower providers to invest in AI confidently, ensuring their services 
are appropriately reimbursed. Without this financial support, these 
providers will face difficulties in embracing and integrating AI 
technologies, ultimately potentially denying revolutionary services to 
patients.
               current ai adoption challenge and solution
    CMS stated in its CY 2023 OPPS/ASC final rule that, ``Novel and 
evolving technologies are introducing advances in treatment options 
that have the potential to increase access to care for Medicare 
beneficiaries, improve outcomes, and reduce overall costs to the 
program.'' Furthermore, CMS also asked for input and suggestions from 
the public on a specific payment approach they might use for these 
services as AI becomes more widespread across health care.

    While CMS has recognized the value and the complex nature of ABHS, 
the agency's reimbursement decisions have not uniformly and 
consistently ensured appropriate levels of payment for these services. 
This inconsistent, unpredictable approach stifles adoption by 
providers, especially in rural and underserved areas, and therefore, 
restricts patient access to new and innovative diagnostic tests and 
treatments. We support a solution that ensures a predictable and 
consistent approach by CMS--an approach that recognizes the costs to 
develop and integrate AI into the clinical setting and reimburses for 
the distinct service that provides otherwise unavailable quantitative 
and qualitative clinical data, with a temporary and separate payment, 
for 5 years, based on manufacturer-supplied cost data. We believe this 
will allow for better adoption of AI to help CMS collect more data to 
evaluate the overall value of ABHS to patients. We also believe that 
more data will demonstrate ABHS's ability to increase access to care 
and improve outcomes for all patients.
                    the future of ai in health care
    AI has enormous potential to improve access to care, diagnose 
disease faster and more precisely, and enable physicians to make 
treatment decisions based on comprehensive access to patient data in 
real time. Siemens Healthineers is researching a patient companion tool 
to synthesize this data and apply AI to look for patterns and detect 
the potential for disease much earlier. In addition, we are working to 
create a digital twin of the patient that would allow a physician to 
perform an interventional procedure, say for a heart procedure, on a 
digital replica of a patient's heart to test how that patient will 
react and respond to a specific course of treatment before it is 
applied to the individual. The digital twin will minimize unintended 
consequences and provide more personalized, precision medicine for the 
patient. We are excited about what the future holds for AI in health 
care.
                               conclusion
    In closing, thank you for the opportunity to testify before you 
today on AI in health care. While there are many forms of AI 
applications in health care to reduce physician burnout and streamline 
operational complexities, we believe the highest value of AI in health 
care comes in the form of ABHS, and that this will revolutionize 
health-care services for patients. Siemens Healthineers is a market 
leader in researching and training AI in medical technologies and 
welcomes the opportunity to continue this discussion. It is critical 
that we all work together to ensure we create trust with consumers and 
build ethical, transparent, and accessible AI in health care to improve 
patient outcomes. Again, thank you for the opportunity to testify. I 
look forward to your questions.
                                addendum
    We use a set of guard rails to guide the way we develop and 
implement AI in health care:

          We believe that health-care professionals, backed up by AI 
        solutions, make a strong team.

              Our AI solutions learn from the best: Siemens 
        Healthineers collaborates with a huge network of world-class 
        clinicians, where we combine our research and development (R&D) 
        capabilities with our customers' clinical expertise. The 
        results of this collaborative process are powerful, clinically 
        proven AI companions for decision-making that help to provide 
        better patient care at lower cost. Humans and artificial 
        intelligence have vastly different abilities. We believe that 
        the future of medicine lies in combining the strengths of these 
        capabilities. Such systems will provide health-care 
        professionals with tools to meet the rising demand for 
        diagnostic imaging and actively shape the transformation of 
        radiology into a data-driven research discipline. Moreover, AI 
        algorithms are expected to help speed up clinical workflows, 
        prevent diagnostic errors and reduce missed billing 
        opportunities, thus enabling sustained productivity increases.

          We believe the level of autonomy of AI solutions needs to be 
        balanced with ethical expectations and human values.

              Societies are currently discussing the extent 
        to which AI solutions could be a vital part of everyday human 
        life. Depending on the area of life, society allows and strives 
        for lower or higher levels of autonomy. In this regard, health 
        care is a special area, as patients benefit from and rely on 
        the trusted doctor-patient relationship. A high degree of 
        autonomy of an AI solution substantially impacts this 
        relationship. In health-care areas, where the personal and 
        trusted patient-doctor relationship is key to the success or 
        course of the treatment, we believe that the autonomy of AI 
        solutions needs to be well-balanced. Therefore, we develop AI 
        solutions only for areas where they are ethically acceptable 
        and beneficial to humankind and society.

          We develop AI solutions to support patients' desires for 
        more personalized medicine.

              An increasing choice of personalized 
        therapies is leading to significantly improved outcomes in 
        oncology, but personalized medicine is also gaining traction in 
        other application areas. For physicians, however, it is 
        becoming more and more challenging to keep abreast of the 
        constantly expanding treatment options. With our AI solutions, 
        we enable physicians to make more accurate diagnosis and 
        treatment choices, based on comprehensive patient data and the 
        ever-advancing wealth of medical knowledge. With our vision of 
        the ``Health Digital Twin'' as a constantly updated virtual 
        model of the human body, we strive to develop the next 
        generation of systems for personalized medicine.

          We believe data handling in health-care needs to focus on 
        the individual.

              We support patients, so they can share their 
        health data safely and securely with physicians in health 
        systems. Our e-health solution creates a decentralized 
        electronic health record that enables patients to make their 
        longitudinal health data accessible to physicians. The patient 
        is in control and decides who to share their data with. We 
        promote the vision of a ``Health Digital Twin'' in health care, 
        which models and represents a human body based on a multitude 
        of datasets like body composition and vital parameters. For 
        both patients and healthy people, their digital twin will help 
        physicians to diagnose complex systemic diseases earlier and 
        find the best treatment available for the patient's given 
        condition.

          We strive to develop AI solutions for both healthy people 
        and sick people.

              Our current portfolio focuses on diagnosing 
        and treating patients. Yet, we believe that stewardship for a 
        patient starts with prevention, and the predictive power of AI 
        offers a wealth of opportunities for us to help people stay 
        healthy. In the future, we want to extend our portfolio to 
        support health systems in their transformation from caring for 
        the sick to proactively caring for the well.

          We work passionately to make AI solutions accessible to 
        patients everywhere.

              At Siemens Healthineers, we believe that 
        every human being has the right to access high-quality health 
        care, regardless of location, age, and social circumstances (in 
        line with Art. 27 (1) Declaration of Human Rights ``right to 
        progress''). Thus, we support the United Nations' 3rd 
        Sustainable Development Goal (SDG), which ensures healthy lives 
        and promotes well-being for all at all ages. By providing 
        powerful AI solutions, we contribute to better and more 
        personalized health care that is accessible around the globe.

          We believe AI development needs to be transparent.

              We openly communicate insights into 
        underlying technology, training/test datasets, and quality 
        assurance for our AI solutions. We carefully compile training 
        and test datasets which we document to allow traceability and 
        transparency. Specifically, we strive to free our data from 
        bias and prejudice to enable equal treatment for all people.

      We measure ourselves against the highest scientific standards.

              We aim to improve clinical outcomes with 
        state-of-the-art technologies. We do not fuel technological 
        hype; instead, we invest in science to improve technology and 
        establish new standards. Our world-class scientists therefore 
        critically evaluate and thoroughly assess our AI solutions with 
        carefully designed evaluation studies for the respective target 
        populations.

          We speak honestly about the capabilities of our AI 
        solutions.

              We are aware of the capabilities and 
        limitations of our AI solutions and share these insights with 
        our customers and users in order to promote the setting of 
        realistic expectations. Expectations of any technical system 
        need to be realistic to prevent false hopes, misunderstandings, 
        and errors in judgment. Health-care professionals need to be 
        aware of the capabilities of an AI solution, so that they can 
        make an informed decision in line with applicable best 
        practices and guidelines and advise patients accordingly.

    Data Privacy--we believe that to fully realize the potential of 
digital transformation, people need maximum confidence in the 
processes, institutions, and technologies used.

    At Siemens Healthineers, our data vision is, ``we use data 
responsibly to develop innovations in health care to help people live 
healthier and longer lives.'' This vision has given rise to a set of 
data principles that guide our handling of very sensitive health data 
and the development of today's and tomorrow's digital health solutions:

          We use data for the benefit of the individual.

              The purpose of our company is to advance 
        human health. People should benefit from data-driven medical 
        innovations through the prevention of sickness and best-in-
        class procedures and treatment. We invest in data-driven health 
        solutions because we support the patient's desire for 
        personalized high-precision medicine to live a healthier and 
        longer life.

          We use data to drive health-care innovation.

              Data will become the key enabler for 
        innovations in digital health care. Data-driven innovations are 
        essential for medical research and progress. Our tailored and 
        responsible use of data enables us to fill our innovation 
        pipeline, push data-driven medicine and develop innovative 
        procedures for patients.

          We are trustworthy and ethical in our handling of data.

              We only use data in a purpose-bound manner to 
        develop medical innovations and to enable our data-driven 
        products to perform according to their specified performance 
        capabilities. We treat data responsibly, reliably, and 
        securely.

          We apply proven and high data privacy standards worldwide.

              We believe that trust and accountability are 
        basic pillars for responsible data privacy management. 
        Consequently, we apply high data privacy standards worldwide. 
        Fundamental legal principles of the GDPR--including the 
        legitimacy and lawfulness of data processing, purpose 
        limitation, the need-to-know principle, data avoidance and data 
        economy--are mandatory for Siemens Healthineers worldwide based 
        on internal directives. In addition, we apply proven technical 
        standards and organizational measures to ensure data security, 
        authenticity, and confidentiality. Our ISO-certified 
        cybersecurity management system follows a holistic approach and 
        integrates information security management (ISO 27001) and 
        privacy information management (ISO 27701).

          We support the advancements that enable individuals to have 
        sovereignty and transparency over their data.

              Every person should have sovereignty over 
        their own health data. This includes transparency on what data 
        is used on what basis and for what purposes, and the right to 
        grant or revoke consent to the use of one's own data. This 
        right should also include the freedom to donate one's personal 
        data for the purpose of conducting research, advancing 
        progress, and improving health-care solutions. The processing 
        of health data in private-sector research and development work 
        also contributes significantly to advancing medical and 
        technical progress. To safeguard this valuable contribution, we 
        believe that private-sector research is also subject to the 
        privilege of research, and that the development of medical 
        devices or artificial intelligence that facilitate(s) 
        improvements in the early detection or treatment of illnesses, 
        for instance, also serves the public interest and public 
        health. We promote trust throughout society and among all 
        patients for the application of digital technologies and 
        support the exercising of their rights accordingly.

          We leverage data as a strategic asset.

              Driving digitalization and promoting value 
        creation from data are essential to advancing medical progress 
        and providing efficient, high-quality health care. Leveraging 
        this potential of data is strategically important to us. 
        Besides developing data- and software-driven solutions for 
        supporting decision-making, we continuously pursue efforts to 
        further develop our portfolio by automating devices and 
        workflows and expanding our use of predictive maintenance. The 
        interoperability and connectivity of our products and solutions 
        accelerates this development into a 
        platform-oriented business.

          We use state-of-the-art technology to protect data.

              We offer a state-of-the-art portfolio of 
        secure products, cybersecurity services and consulting that 
        helps to ensure optimum protection. We continuously improve our 
        systems and processes and train our teams in aspects of 
        cybersecurity and data protection to maintain a consistently 
        high level of threat awareness is. Our engineering practices 
        include a secure development lifecycle (SDL) to ensure that 
        high cybersecurity standards are implemented for every product 
        and solution. Examples of our core development principles are 
        the implementation of privacy by design and privacy by default.

          We support open standards for data interoperability.

              The key to data-driven health-care 
        innovations is the ability to interconnect various health 
        datasets. It is only through data integration and data 
        interoperability that the value of data can be fully utilized. 
        We strongly support the standardization of health-care data and 
        data sharing. When designing our solutions, we aim to 
        systematically include standardized interfaces such as DICOM5, 
        FHIR6, and increasingly uniform APIs7.

          We invest in trustful partnerships to access data.

              Efforts to improve medical knowledge and to 
        advance data-driven health-care solutions depend on having 
        rights to access health data from diverse, genuine sources. We 
        believe that providing fair access to relevant data by all 
        health-care stakeholders and using this data responsibly to our 
        mutual benefit will contribute to advancing medical progress. 
        We therefore build our data-related partnerships on fairness 
        and transparency.

                                 ______
                                 
            Questions Submitted for the Record to Peter Shen
               Questions Submitted by Hon. Chuck Grassley
    Question. We spent about $4.5 trillion in health care last year. A 
key area of waste in our health-care system is medical errors, failure 
of care delivery, and over-treatment. Some estimates suggest we waste 
$205 billion to $425 billion each year due to medical errors and waste.

    What potential does deploying artificial intelligence to review 
clinical decisions have in reducing medical errors and waste? Are you 
aware of existing practices and can we scale them?

    Answer. Algorithm-Based Health-care Services (ABHS) produce 
qualitative and quantitative clinical findings that support physician 
diagnostic and therapeutic clinical decisions with increased 
sensitivity, specificity, and accuracy. ABHS helps physicians recognize 
potential clinical ailments earlier in diagnosis and minimizes 
additional unnecessary diagnostic tests, such as identifying, 
characterizing, and quantifying coronary calcification in a patient 
undergoing a routine chest CT screening exam.

    Question. According to a Mercatus Institute analysis, the 
Department of Health and Human Services is home to over 42,000 Federal 
Government regulations for health care, including over 16,000 
regulations at the Centers for Medicare and Medicaid Services and over 
13,000 regulations at the Food and Drug Administration.

    Should we add more Federal regulations for artificial intelligence, 
or do existing regulations protect safety and promote good governance 
without stifling innovation?

    Answer. Siemens Healthineers algorithms go through a regulatory 
approval process with the Food and Drug Administration (FDA). We follow 
all AI/Machine Learning (ML)-enabled medical device regulatory 
requirements for premarket review and postmarket surveillance to ensure 
the safety and efficacy of our devices. We also engage with the FDA 
regularly on AI/ML and provide feedback on ways to ensure the continued 
safe and effective application of these technologies. In this regard, 
our AI is distinct from unregulated AI products.

    We believe that with the rapid acceleration in development and 
innovation of AI, the need for the regulatory environment to be able to 
balance safety, effectiveness, as well as update and improve 
functionality, without hampering innovation and adoption is critical. 
While we believe the current regulatory framework is sufficient to 
support AI innovation, we support the continuation of flexibility in 
the approval process, as a one-size-fits-all approach could seriously 
inhibit the potential of AI, as well as efforts to facilitate global 
harmonization and the development of appropriate international 
consensus standards.

    Additionally, Siemens Healthineers recognizes the importance of 
continuing to address unintentional potential bias in AI. We feel that 
these concerns are currently addressed for applications in medical 
devices and mitigated under existing risk management processes, quality 
systems, and compliance with regulatory requirements from the FDA and 
other regulators.

    Question. You work for Siemens, and that's a large company. Do you 
think a small hospital or entrepreneur can navigate the existing 
Federal regulatory regime to get their artificial intelligence product 
to market?

    Answer. As part of the MedTech industry, our Algorithm-Based 
Health-care Services (ABHS) go through an established, proven 
regulatory approval process with FDA. While we believe the current 
regulatory framework is sufficient to support AI innovation from all 
MedTech vendors, we support the continuation of flexibility in the 
approval process, as a one-size-fits-all approach could seriously 
inhibit the potential of AI in health care.

    What we see as a big problem for small hospitals and rural health-
care facilities is an inconsistent and unreliable reimbursement 
approach from CMS for FDA-cleared clinical AI products. This 
inconsistent reimbursement approach could have significant impact on 
adoption and access to care for rural health-care facilities, resulting 
in patients not having access to innovative services that help support 
more informed diagnosis and treatment decisions.

    Question. At the House Energy and Commerce Committee hearing last 
November, you described Siemens Healthineers' AI Office of Big Data and 
mentioned you've created and maintained a transparent quality assurance 
process.

    Are there policy lessons we can learn from Siemens Healthineers' 
efforts to ensure transparency and quality assurance in using 
artificial intelligence for health care?

    Answer. Siemens Healthineers has been working on applying 
artificial intelligence in medical technology for more than 20 years. 
Over those 20 years we have found that keeping patients at the heart of 
every step of the process, and building trust through a transparent 
end-to-end approach, are the keys to reliable, quality AI services. We 
encourage others in the private sector to adopt principles to ensure 
transparency and quality in the training of algorithms, and we believe 
our principles are a good starting place for that discussion.

    At our Big Data Office in the U.S., we've built one of the most 
powerful supercomputing infrastructures dedicated to developing AI in 
health care. This allows our research scientists to collect, prepare 
and organize correct and secure medical data--including more than 1.8 
billion curated images from more than 200 clinical providers and 
partners--needed to train and deliver accurate AI algorithms. From its 
inception, we have created and maintained a quality assurance process, 
which involves clinical validation to both understand the treatment 
outcome associated with the curated data as well as guarantee the data 
being used to train the AI algorithms is accurate for diagnosing and 
treating disease.

    Additionally, to ensure we develop reliable AI algorithms that are 
reflective of the patient populations they will be applied towards, we 
continually maintain a holistic view of the patient with high-quality 
AI training data. This training data is based on a balanced cohort of 
people of different ages, genders, ethnicities, healthy people, and 
those who are sick. We work from the inception of AI development to 
build algorithms that are reliable, accurate, unbiased, and protect the 
patient.

    We are proud of the work we do to develop reliable, quality AI and 
have developed company-wide guard rails for AI that were included in 
the addendum of our written testimony.

                                 ______
                                 
               Questions Submitted by Hon. Maria Cantwell
    Question. One of the most difficult questions we're struggling with 
right now is predicting the impact that AI will have on our workforce. 
When we have previously seen rapid technological advances, people have 
often worried about job loss. However, when it's all said and done, the 
technological advances actually created more jobs.

    It's undeniable that Washington State needs more health-care 
workers. The Washington State Hospital Association reports that the 
State's hospitals need to hire over 6,000 more nurses to meet their 
staffing needs. Maybe AI will help with job creation, but I'm not so 
sure. As Mustafa Suleyman, cofounder of Google's Deep Mind, commented 
at Davos this year, AI is basically a labor-replacing tool. While I 
believe that AI has tremendous potential to address our health-care 
workforce shortage, I'm very concerned with the potential negative 
impact that AI could have on our health-care work force.

    At the end of the day, computers and algorithms cannot replace the 
logic and reasoning capabilities of a human who has gone to medical 
school or received a nursing degree and gained experience through 
practice. Artificial intelligence also cannot replicate, for example, a 
nurse who employs empathy and human characteristics while comforting a 
terminal patient. There is a role for AI in improving the resiliency of 
the health-care workforce, but AI should not completely replace human 
presence and decision-making.

    In your opinion, when is it appropriate to employ artificial 
intelligence to fill the gaps that the health-care workforce shortage 
has created? When is it also not appropriate?

    Answer. Artificial intelligence can be an important tool to 
streamline hospital operations and efficiencies, for instance, to 
ensure optimal use of scheduling for operating rooms and staffing 
needs. We believe there is a role for AI in supporting administrative 
tasks to help alleviate workforce shortages. However, we believe 
clinicians must stay at the center of patient engagement--from 
screening and diagnosing to treating disease. It is not appropriate to 
use AI to replace physician 
decision-making. Specifically, the physician must understand, evaluate, 
and determine whether to use Algorithm-Based Health-care Services 
(ABHS) when interacting with the patient. This is an additional service 
available to the physician but must not be used in lieu of that 
physician. We believe that health-care professionals, backed up by AI 
solutions, make a strong team for the patient.

    Question. Your company, Siemens Healthineers, partnered with the 
American College of Radiology to foster innovation and improve 
innovative patient care. How does that project balance the need to fill 
workforce shortage gaps while protecting the role of humans in health-
care settings?

    Answer. Our partnership with the American College of Radiology 
(ACR) demonstrates the importance of working closely with specialty 
organizations in the successful adoption of AI in health care. Through 
the launch of the Transparent-AI program we disclose detailed product 
information, including training data demographics and machine 
specifications, to help ACR members understand and choose efficient AI 
tools that meet their specific patient population needs while also 
addressing their own workforce challenges.

    Additionally, we believe health care is a special area, as patients 
benefit from and rely on the trusted doctor-patient relationship. A 
high degree of autonomy of an AI solution substantially impacts this 
relationship. In health-care areas, where the personal and trusted 
patient-doctor relationship is key to the success or course of the 
treatment, we believe that the autonomy of AI solutions needs to be 
well-balanced. Therefore, we develop AI solutions only for areas where 
they are ethically acceptable and beneficial to humankind and society.

                                 ______
                                 
                Questions Submitted by Hon. John Cornyn
    Question. While CMS has recognized the value and the complex nature 
of 
Algorithm-Based Health-care Services (ABHS), the agency's reimbursement 
decisions have not uniformly and consistently ensured appropriate 
levels of payment for these services. This inconsistent, unpredictable 
approach stifles adoption by providers, especially in rural and 
underserved areas, and therefore, restricts patient access to new and 
innovative diagnostic tests and treatments. We support a solution that 
ensures a predictable and consistent approach by CMS--an approach that 
recognizes the costs to develop and integrate AI into the clinical 
setting and reimburses for the distinct service that provides otherwise 
unavailable quantitative and qualitative clinical data, with a 
temporary and separate payment, for 5 years, based on manufacturer-
supplied cost data. We believe this will allow for better adoption of 
AI to help CMS collect more data to evaluate the overall value of ABHS 
to patients. We also believe that more data will demonstrate ABHS's 
ability to increase access to care and improve outcomes for all 
patients.

    You state in your testimony that CMS coverage and reimbursement is 
an ``inconsistent, unpredictable approach'' and that you ``support a 
solution that ensures a predictable and consistent approach'' by the 
agency. I support a solution as well. As we have considered it, part of 
the reason I see for the inconsistent and unpredictable approach is 
that Medicare's payment systems act independent of one another and 
often try to fit innovative products like AI into their coverage 
systems. Private insurance, however, seems much more in the business of 
building new coverage and reimbursement approaches for new innovative 
products to get more savings/value out of them.

    Do you see this siloed approach to operating the Medicare program 
as part of the problem like I do?

    Answer. The challenge lies in ensuring Medicare payment systems are 
interrelated. One notable instance demonstrating progress in this 
direction is evident in the CY 2024 Medicare Physician Fee Schedule 
(PFS) final rule issued by CMS. This discussion highlighted the 
authority and appropriateness of cross-walking payments for certain 
services from the Hospital Outpatient Prospective Payment System (OPPS) 
to PFS. It reflects a promising step towards fostering interrelatedness 
within Medicare's payment mechanisms.

    However, to fully capitalize on this progress, it's imperative that 
CMS consistently exercises this authority when appropriate. By doing 
so, CMS can help mitigate the fragmentation and inconsistencies that 
currently characterize Medicare's payment landscape. This approach 
would not only enhance the efficiency of payment processes but also 
ensure equitable access to innovative services, such as those involving 
AI, across different health-care settings.

    Question. An article in Health Affairs by Robert Horne \1\ 
theorized that one way to address this problem of inconsistent 
unpredictable approach is to reverse the CMS coverage and payment 
process. Instead of focusing on coverage within a specific payment 
system, establish program-wide coverage and reimbursement with CMS 
leadership and then work to imbed these new arrangements with 
individual payment systems. This would allow CMS as a program to 
consider and capture more of the value from innovative product designs 
like AI as well as the means of pushing consistency down to the payment 
systems.
---------------------------------------------------------------------------
    \1\ https://www.healthaffairs.org/content/forefront/digital-era-
payment-reform-key-shaping-modern-medicare-program.

---------------------------------------------------------------------------
    What do you think about this approach?

    Answer. We agree that ``ineffective approaches to payment can also 
lead to increased program expenditures without additional benefits.'' 
Therefore, we strongly encourage CMS to adopt a payment framework that 
adequately accommodates AI, particularly products falling under the 
definition of Algorithm-Based Health-care Services (ABHS). Pursuing a 
modern, comprehensive, and reliable reimbursement pathway that 
acknowledges the value of AI is critical; however, more data is 
required to determine metrics that could be universally applied across 
all payment systems. Presently, the emphasis is on CMS utilizing its 
existing pathways consistently, while broader endeavors persist in 
addressing AI coverage and payment on a larger scale.

                                 ______
                                 
                 Question Submitted by Hon. John Thune
    Question. AI has the potential to improve certain aspects of 
administrative processes and practice in clinical settings that could 
make hospitals and physicians more efficient and improve safety and 
quality.

    How can the Medicare program appropriately value these services and 
account for increased efficiency and reduced costs?

    Answer. Although AI technology undoubtedly holds promise for 
enhancing efficiency in health-care delivery, our current emphasis lies 
on AI tools capable of furnishing actionable clinical data to support 
physicians in decision-making processes, ultimately leading to improved 
patient outcomes. Medicare's ability to accurately assess and value 
these services is crucial. This involves recognizing not only the costs 
associated with developing and integrating AI into clinical settings 
but also acknowledging the unique value proposition of AI-enabled 
services, which provide access to quantitative and qualitative clinical 
data that would otherwise be unavailable. By appropriately reimbursing 
for these distinct services, Medicare can incentivize the adoption of 
AI technology and facilitate its integration into routine clinical 
practice, thereby driving advancements in patient care and health-care 
delivery.

                                 ______
                                 
             Questions Submitted by Hon. Sheldon Whitehouse
    Question. Rhode Island has several health-care enterprises that we 
are very proud of, including the State-wide Rhode Island All-Payer 
Claims Database (RI APCD).

    What role can AI play with regard to maximizing the utility of a 
robust, All-Payer Claims Database?

    Answer. Generative AI, which provides the potential to sort through 
information rapidly to identify certain characteristics and outliers, 
could be used with an All-Payer Claims Database to look for patterns 
and signal potential abnormalities that would encourage a physician or 
clinician follow-up. This would require strong privacy protections, a 
clear and distinct chain of responsibility for data ownership and 
protection, and cybersecurity protections. While there is great 
potential here, there is also great risk and consumer trust must be 
established prior to the exploration of AI within an All-Payer Claims 
Database, depending on what information AI has access to.

    Question. Are you working in the development of AI with some of the 
medical specialty organizations (orthopedics, cardiologists, et 
cetera)? Are specialty organizations a useful place for benchmarking, 
approval, or accrediting best AI practices? And if they are, do you 
have any good examples of a medical specialty association that is being 
particularly forward and helpful at looking for the best uses of AI 
within the specialty?

    Answer. Partnering with physicians is essential to the adoption of 
AI, and its ability to be a powerful clinical tool to drive better 
patient outcomes. As example, our partnership with the American College 
of Radiology (ACR) demonstrates the importance of working closely with 
specialty organizations in the successful adoption of AI in health 
care. Through the launch of the Transparent-AI program we disclose 
detailed product information, including training data demographics and 
machine specifications, to help ACR members understand and choose 
efficient AI tools that meet their specific patient population needs 
while also addressing their own workforce challenges.

    Question. Rhode Island has two, unusually good Accountable Care 
Organizations (ACOs).

    In what ways could artificial intelligence be used to support the 
ACO program?

    Answer. Algorithm-Based Health-care Services (ABHS) produce 
qualitative and quantitative clinical findings that support physician 
diagnostic and therapeutic clinical decisions with increased 
sensitivity, specificity, and accuracy. In these ways, ABHS could be 
incredibly helpful to accountable care organization physicians by 
better assisting in recognizing potential clinical ailments earlier in 
diagnosis and minimizing additional unnecessary diagnostic tests such 
as identifying, characterizing, and quantifying coronary calcification 
in a patient undergoing a routine chest CT screening exam.

                                 ______
                                 
                 Prepared Statement of Hon. Ron Wyden, 
                       a U.S. Senator From Oregon
    This morning the Finance Committee meets to discuss the use of 
artificial intelligence, or AI, systems in health care, with a focus on 
how this technology is being used in Federal health programs like 
Medicare and Medicaid.

    There's no doubt that some of this technology is already making our 
health-care system more efficient. But some of these big data systems 
are riddled with bias that discriminates against patients based on 
race, gender, sexual orientation, and disability. It's painfully clear 
not enough is being done to protect patients from bias in AI.

    Just as I worked to ensure tech innovation would improve patient 
care in the 1990s with laws empowering telemedicine and digital 
signatures, Congress has an obligation to encourage the good outcomes 
from AI and set rules of the road for new innovations to deliver better 
care for Americans.

    Today we'll also discuss the role Congress and this committee must 
play in helping strike a balance between protecting innovation and 
protecting patients and their privacy with legislative proposals like 
my Algorithmic Accountability Act, which would tackle these concerns 
head-on.

    There are a lot of reasons to be optimistic about the potential of 
AI to improve health care. Today the industry is facing a host of 
challenges, all made worse by the strain the COVID-19 pandemic put on 
our health-care system. There's an ongoing workforce shortage, existing 
providers are facing high rates of burnout, health-care costs are 
rising faster than wages, and there's an ever-growing gap between the 
care that's needed and the care actually being delivered to many 
Americans.

    Already, AI tools are being deployed to reduce some of these 
pressures and ease strain on the industry and providers. Some doctors 
are using this technology to prepopulate clinical notes and emails to 
reduce workload, submit bills to insurers to reduce administrative 
waste, and even help with diagnostics. Primary care providers can use 
these tools to screen for certain diseases and connect patients with 
specialists for treatment, saving patients' time and money, and leading 
to better, more timely care.

    There is no doubt these technological innovations can improve care 
for patients in Medicare and Medicaid, while also improving workload 
for providers, many of whom are already stretched thin. But addressing 
these challenges with new technology shouldn't mean worse patient 
outcomes and sacrificing patient privacy.

    Unfortunately, there are clear, glaring examples of AI tools being 
developed with data that perpetuate racial biases, and deployed in ways 
that bypass important doctor expertise, leading to inadequate care for 
patients.

    The committee is lucky to have here today Dr. Ziad Obermeyer, who 
in 2019 discovered harmful racial bias in an AI tool developed by the 
health-care company Optum--a subsidiary of UnitedHealth Group--and used 
by providers across the country to offer care management services.

    He found that the tool, on average, required Black patients to 
present with worse symptoms than White patients in order to qualify for 
the same level of care.

    This algorithm was available to thousands of doctors across the 
country, potentially impacting millions of patients. How could such a 
flawed system make its way into general use? The answer is simple: 
there was nobody watching. No guard rails were in place to protect 
patients from flawed algorithms and AI systems.

    To make matters worse, the technology that insurance companies or 
health systems use can play a role in what care patients receive, and 
what services are approved or denied. And the Department of Health and 
Human Services does not--yet--oversee the use of these systems.

    I think most of us here would agree there are many ways this 
technology can be used to improve health care and patient outcomes. 
However, as we increasingly rely on technology like AI to make 
decisions in every facet of our day-to-day lives, this committee has a 
responsibility to ensure there are guard rails in place to protect 
patients, particularly in Medicare and Medicaid, and I do not believe 
that current laws go far enough to achieve that goal.

    My Algorithmic Accountability Act lays the groundwork to root out 
algorithmic bias from these systems. As applied to health care, my bill 
would require health-care systems to regularly assess whether the AI 
tools they develop or select are being used as intended and aren't 
perpetuating harmful bias.

    I'll close with this: I believe the same protections in my 
Algorithmic Accountability Act must apply to patients in Medicare and 
Medicaid. Here's what's needed most: transparency in how these tools 
are developed and used to foster trust, and accountability for how 
these tools are used in health care. These tools should also preserve 
the privacy of patients. Lastly, these tools should further equity in 
health care, not perpetuate harmful bias or disadvantage hospitals and 
providers who serve low-income patients or communities of color.

    The Food and Drug Administration and the Office of the National 
Coordinator for Health IT have proposed new rules to address some of 
these issues. That's a step forward. But they don't go far enough. It's 
clear more is needed to protect patients from flawed systems that can 
and will directly affect the health care they receive. I look forward 
to working with my colleagues on the committee to identify ways we can 
protect patients and improve care going forward.

                                 ______
                                 

                             Communications

                              ----------                              


                                  AARP

                         https://www.aarp.org/

AARP, which advocates for the more than 100 million Americans age 50 
and older, appreciates the Senate Committee on Finance's effort to 
better understand the growing impact of artificial intelligence (AI) 
and other algorithmic tools in the delivery of health care. As major 
consumers of health care, older Americans will acutely experience the 
benefits and potential harms of AI's expansion into all aspects of our 
health care system.

The expanded use of AI holds great promise for improving patient care. 
As noted in a recent U.S. Government Accountability Office report \1\ 
to Congress, clinical AI tools show encouraging results in predicting 
health trajectories of patients, recommending treatments, guiding 
surgical care, monitoring patients, and supporting population health 
management. These exciting tools have huge potential to increase 
quality and efficiency in health care, reduce complexity and 
inefficiency in consumer interactions, and make other improvements in 
ways that we cannot yet comprehend.
---------------------------------------------------------------------------
    \1\ https://www.gao.gov/products/gao-21-7sp.

At the same time, the growth of AI presents significant risks that 
could negatively impact patients in numerous ways. For example, AI 
could be used to augment profit-seeking behavior in the health care 
system by automatically denying certain claims and leaving patients 
with no understanding of how those decisions were made and little 
recourse to correct them. AI also relies on existing datasets to 
develop algorithmic decision tools, which can reinforce existing biases 
and disparities in the health care system. For instance, under-
representation of minorities because of racial biases in dataset 
development might lead to subpar prediction results \2\ for members of 
those groups. Without proper safeguards, these tools can make decisions 
that perpetuate those biases, reflecting historic prejudices, including 
against older adults.
---------------------------------------------------------------------------
    \2\ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9908503/.

While it is difficult to predict all of the ways in which AI will 
impact the health care system in the years to come, we encourage 
Congress to keep the experience of consumers and their safety as the 
highest priorities and carefully consider the following principles when 
developing policy.

General Principles

Fairness, transparency, and accountability should guide all uses of AI 
or other algorithmic tools that make consequential decisions regarding 
a patient's health, coverage, or well-being. Patients must feel secure 
that the algorithmic tools being used to make potentially life and 
death decisions are:

      Fair, reliable, and accurate and not result in unjustifiable 
disparate impacts on people's civil rights;
      Transparent when a consumer, or provider involved in a 
consumer's care, interact with such a tool and provide clear 
explanations about the results; and
      Accountable, such that patients who have been adversely affected 
by a decision informed by an algorithmic decision tool have access to a 
fair and meaningful process to challenge those decisions and their 
outcomes.

The degree of regulation should be commensurate with the potential risk 
of harm to individuals and should focus on outcomes and performance 
standards, not the technology used.

Anti-Discrimination

Digital discrimination and algorithmic bias pose new challenges in 
health care. For example, AI may determine whether a person qualifies 
for a particular health care service or government benefits. The use of 
algorithms in these situations has the potential to amplify systemic 
discrimination and may be outside the scope of existing civil rights 
laws. Congress must ensure that consumer protection and 
antidiscrimination laws that apply in the context of human decisions 
are adapted to effectively apply to AI algorithmic decision tools.

AI tools used in the health care context should be evaluated for 
accuracy, reliability, and fairness prior to deployment and routinely 
thereafter. If it is not reasonably possible to calculate the impact of 
each input or factor in an algorithm on a decision, the algorithm as a 
whole must be evaluated to determine if it results in an unjustifiable 
disparate impact on a protected class. When governments utilize 
algorithmic tools to inform consequential decisions, these tools should 
be evaluated by a qualified third party for reliability, accuracy, and 
possible biases against people's civil rights protections. The results 
of these evaluations should be made public.

Similarly, strong protections should be enacted to protect against AI-
based improper denials of coverage in insurance decisions and incorrect 
diagnosis in medical decisions. Consumers must also have peace of mind 
that if their insurance carrier makes an erroneous denial of coverage 
or their medical provider makes an incorrect diagnosis there is a clear 
path to recourse through an expedient and nonbiased appeals process.

Transparency and Privacy

For consumer protections to be meaningful, there must be transparency 
and accountability. Transparency must include providing clear, readily 
accessible notice to people when they are interacting with an 
algorithm, the intent of the algorithm, clear explanations about the 
results, and any relevant implications. In addition, transparency 
includes providing people with access to easy-to-understand 
explanations of the factors that contributed to a decision and the 
logic behind it.

At their most fundamental level, all applications of AI rely on the 
analysis of reams of data to detect patterns and make inferences and 
predictions. The challenge is establishing the guardrails that allow 
for data uses that bring lasting consumer benefits while still 
providing robust consumer privacy protections. Privacy protections 
should be embedded into all products and services, keep pace with 
changing technology and privacy standards, minimize data collection to 
what is needed for the product or service, and be developed with strong 
input from consumer stakeholders. Organizations (including private 
companies, nonprofits, and government entities) should clearly 
communicate to the consumer:

      What identified and deidentified personal information is 
collected, inferred, or deduced, and how it can be used, maintained, 
shared, or sold to others;
      Whether AI systems are applied to personal information;
      How data created from the use of AI are used, maintained, 
shared, or sold to others; and
      How to exercise opt-out rights.

Privacy policies regarding a consumer's data should be written in plain 
language and disclosed before a consumer uses a product or service. 
They should be clear, short, and standardized. Organizations should be 
required to evaluate and mitigate the privacy risks to consumers, and 
privacy laws and regulations should include strong enforcement 
mechanisms to ensure compliance. These mechanisms include strong 
enforcement authority, appropriate fines and penalties, and swift 
compliance deadlines.

Managing health-related data, in particular, presents challenges and 
risks that need a comprehensive framework of privacy and security 
safeguards to help ensure public trust. Organizations engaging with 
health data should be required to provide consumers with meaningful 
transparency, choice, and control related to their health and health-
related data, and be required to:

      Ensure accuracy of health and health-related data;
      Provide consumers with the opportunity to review the health 
information and data held about them;
      Allow consumers to dispute and resolve the accuracy or 
completeness of health and health-related data;
      Provide consumers with an easy and swift process to delete data 
when they want to end the relationship with an organization; and
      Obtain consumers' explicit opt-in consent before selling, 
sharing, or trading personally identifiable health or health-related 
data.

Conclusion

Thank you for the opportunity to provide AARP's perspective on AI and 
health care. We look forward to working with you to address this 
important issue to ensure that all Americans receive timely, safe, and 
quality care as these new technologies are widely deployed.

                                 ______
                                 
       Advanced Medical Technology Association (AdvaMed) Imaging

                  Algorithm-Based Healthcare Services

Advanced Medical Technology Association (AdvaMed) Imaging appreciates 
the opportunity to provide a statement for the record in response to 
the U.S. Senate Committee on Finance hearing entitled Artificial 
Intelligence and Health Care: Promise and Pitfalls. AdvaMed Medical 
Imaging Division represents the manufacturers of medical imaging 
equipment, including, magnetic resonance imaging (MRI), medical X-Ray 
equipment, computed tomography (CT) scanners, ultrasound, nuclear 
imaging, radiopharmaceuticals, and imaging information systems. Our 
members have introduced innovative medical imaging technologies to the 
market, and they play an essential role in our nation's health care 
infrastructure and the care pathways of screening, staging, evaluating, 
managing, and effectively treating patients with cancer, heart disease, 
neurological degeneration, COVID-19, and numerous other medical 
conditions. We focus our statement on how Congress can improve 
innovation, adoption, and access to algorithm-based healthcare services 
(ABHS).

ABHS are services enabled by medical devices cleared by the Food and 
Drug Administration (FDA) that rely on artificial intelligence (AI) or 
machine learning (ML), or other similar software to produce 
quantitative and/or qualitative outputs that clinicians can use to aid 
in the diagnosis or treatment of a patient's condition. ABHS provide 
clinical outputs that cannot be otherwise obtained by a healthcare 
provider and has played a growing role in improving care delivery and 
informing care pathways throughout the healthcare industry. For 
example, ABHS can identify diabetic retinopathy, and measure the 
caliber of coronary arteries via mechanisms and clinical outputs not 
otherwise available to inform patient care.

We note that ABHS occupy a unique niche in the broader discussion of 
AI/ML in health care, as ABHS undergoes rigorous FDA regulatory 
approval pathways and review by the Centers for Medicare & Medicaid 
Services (CMS) before such services will be covered under the Medicare 
program. Additionally, in contrast to other AI/ML software, ABHS are 
not generative AI models or used outside the supervision and guidance 
of a trained healthcare professional. Nor is ABHS identical to other 
uses of AI/ML in health care, such as software that passively monitors 
vital signs and improves provider workflows (e.g., AI that improves 
clinical documentation in electronic medical records).

While all types of ABHS described by the American Medical Association's 
(AMA) Current Procedural Terminology Panel continues to demonstrate its 
immense value, less than 10 ABHS have (1) received FDA approval or 
clearance, (2) received a Current Procedural Terminology CPT code from 
the American Medical Association (AMA), and (3) received CMS coverage 
and payment through a unformalized case-by-case basis. The ABHS that 
receives Medicare coverage includes valuable diagnostic tools such as 
characterizing potentially cancerous lung nodules and assessing signs 
of liver disease.

However, only a few ABHS have received payment assignments through 
Medicare, which is in sharp contrast to the nearly 600 FDA approved or 
cleared AI/ML medical devices, many of which are ABHS. CMS is ill-
equipped to handle the unique aspects of ABHS, and in fact, is looking 
for guidance from stakeholders on the best approach. For example, 
today, an FDA approved ABHS that providers can use to identify 
potentially cancerous colorectal lesions is not separately payable by 
CMS, despite the similarity it has with already covered ABHS that can 
characterize lung nodules. This case-by-case reimbursement approach 
will stifle innovation and patient access to cutting-edge diagnostic 
tools and treatments.

To ensure that patient access and innovation continues for ABHS, CMS 
must modernize its policies to account for the uniqueness of ABHS. 
Under the current system, access to these important services will be 
stunted and innovation will decline. AdvaMed Imaging recommends that 
Congress encourage CMS to formalize its existing Software-as-a-Service 
add on payment policy, revise its New Technology Ambulatory Payment 
Classification (APC) policies to account for the unique aspects of 
ABHS, and provide ABHS with at least 5 years of consistent payments 
while assigned into a New Technology APC. Currently, CMS has the 
authority to make these policy changes.

AdvaMed Imaging further suggests that Congress define ABHS in the 
Social Security Act in order to better identify and distinguish ABHS 
from other types of AI/ML. Congress should also include ABHS as a 
covered and reimbursed hospital service. By doing so, Congress will 
promote innovation and beneficiary access to an important healthcare 
service that is expected to lead to earlier and more accurate 
diagnoses, faster treatment and improved patient outcomes.

Finally, Congress should be judicious in imposing new and unnecessary 
requirements for ABHS, given the demanding regulatory frameworks 
already in place. FDA currently applies strict requirements to the 
development, testing, and approval of ABHS, including a rigorous pre-
market review, processes that assess ABHS performance, reliability, and 
safety, and ongoing monitoring and surveillance after the ABHS has been 
approved or cleared. ABHS developers must also adhere to the FDA's 
labeling requirements that supports transparency to ensure that medical 
providers and the intended patient population has the information 
needed to use the device in a safe, effective, and appropriate manner 
for all.

AdvaMed Imaging thanks the Committee for the opportunity to submit this 
statement and hopes to serve as a partner and resource to the 
Committee. We hope to remain engaged with the Committee to ensure safe 
and appropriate access to ABHS.

                                 ______
                                 
                                  AHIP

                      601 Pennsylvania Avenue, NW

                       South Building, Suite 500

                          Washington, DC 20004

                             T 202-778-3200

                             F 202-331-7487

                         https://www.ahip.org/

AHIP is the national association that represents health insurance 
providers, services, and solutions for millions of Americans. We are 
committed to market-based solutions and private-public partnerships 
while striving to enhance health care, both in terms of accessibility 
and affordability. We represent 128 health insurance plans nationwide. 
Collectively, our member plans provide access to health care for over 
205 million people covered by employer-sponsored insurance, the 
individual insurance market, and public programs such as Medicare and 
Medicaid.

AHIP strives to be a valued and trusted resource for policymakers, 
regulators, and stakeholders that impact health care outcomes. As such, 
we welcome the opportunity to help inform policy discussions on 
artificial intelligence (AI) and its impact on health care.

As Americans increasingly encounter AI in every facet of life, 
including health care, it is important to create balanced policies that 
help realize the potential of AI and build trust among patients and 
stakeholders.\1\ AI has the potential to meaningfully contribute to 
making health care more affordable, expanding access, and improving 
health outcomes. However, the promise of AI also comes with the 
potential for unintended consequences. As AI becomes further integrated 
into our health care systems, a robust and thoughtful policy approach 
will be crucial for advancing impactful applications and building trust 
among patients and stakeholders while preventing potential unintended 
consequences.
---------------------------------------------------------------------------
    \1\ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7325854/.

To that end, AHIP appreciates the Senate Committee on Finance's 
interest in the role of AI in health care. AHIP's members work every 
day to ensure that Americans have access to high-quality care and other 
supports, including appropriately using AI tools to fulfill the promise 
of guiding greater health. We look forward to working with the 
Committee and other stakeholders to enable a strong and resilient 
health system that deploys AI safely and responsibly, harnessing these 
technologies to drive quality, equitable, patient-centered, and 
affordable health care.

The Role of Health Insurance Providers

AI has the potential to make the health care system work better and 
cost less. Health insurance providers are already using AI tools to 
reduce administrative costs, streamline and tailor consumer experience, 
improve and speed care, and minimize fraud.

Some examples of how health insurance providers use AI include:

      Analyzing provider directories to improve the accuracy of 
included data elements.
      Identifying patients who may benefit from improved access to 
services through predictive analytics.
      Assessing clinical performance to help consumers identify high-
value care and for network design.
      Conducting claims analysis to reduce unnecessary spending and to 
identify potential fraud and abuse.
      Cleaning, normalizing, and labeling data for use in various 
programs.
      Conducting clinical models to understand health conditions and 
disease progression through research.
      Identifying gaps in the provision of evidenced-based care.
      Deploying service models to enhance the customer experience, 
such as chatbots.
      Streamlining prior authorization to identify data included in 
electronic medical records and speed requests and approvals (with 
clinicians involved throughout the process).
      Conducting actuarial analysis to help identify population-based 
utilization patterns for health plan sponsors and policymakers to 
understand usage trends both now and for the future.

We believe AI should augment, not replace, human decision-making and 
expertise and supplement existing clinical data to facilitate better 
decision-making. For example, AI can help facilitate a streamlined 
prior authorization process by using algorithms to issue approvals. In 
these tools, AI is generally only used to approve prior authorization 
requests for straightforward cases where the requisite documentation is 
provided by simply applying the same clinical algorithms that a person 
would use to approve a request, only faster. Denials are only automated 
for yes/no questions similar to whether a person is enrolled in the 
insurance plan, prior authorization is not required, or the service is 
categorically not included in the benefit. Cases requiring clinical 
decision-making for approvals or denials are individually reviewed by 
plan medical staff. The focused use of AI in prior authorizations 
allows health care providers and patients to receive approvals quickly, 
while health insurance providers can focus their experts on more 
complex cases.

The current advantages of AI highlight treatment innovations, care 
delivery transformation, operational efficiencies, cost reduction, 
technical innovation, and error reduction. AI has shown the true 
potential to both improve patient access to care and reduce 
administrative costs. While machine learning technologies have come a 
long way, the full extent of the benefits of AI applications have yet 
to be realized.

For instance, ambient and generative AI could take notes for physicians 
saving them time charting and allowing them to focus on patients. 
Natural language processing could find data in unstructured data in an 
electronic health record to reduce the burdens of quality measurement. 
Machine vision could analyze the gait of a recovering orthopedic 
patient at home to develop a physical therapy care plan remotely. 
Digital twins of consumers could allow providers and plans to 
continuously monitor enrollees' health. Clinical trials could be 
conducted primarily through simulations reducing ill effects on humans. 
There are endless possibilities if we strike the right balance between 
encouraging innovation and regulatory oversight.

Minimizing Bias

AHIP and its members are committed to ensuring that the application of 
AI is safe, transparent, explainable, and ethical. AHIP and our members 
seek to ensure these factors are integral components to AI systems, 
which will strengthen trust in the software techniques and outcomes.

We also seek to ensure biases are neither perpetuated nor introduced in 
the development and application of AI that could negatively impact 
certain subpopulations. While we may not be able to second guess and 
prevent all bias, robust monitoring and governance processes can enable 
swift course correction. Technology powered by AI can also play an 
important role in advancing health equity and improving health care 
access. For instance, health insurance providers can use predictive 
analytics to identify disparities in care and connect patients in need 
of additional services, such as case management. Access to high-quality 
data sets, improving collection of demographic data, and leveraging 
industry consensus standards can support efforts to mitigate bias in 
AI.

Stakeholders in the private sector have been collaborating to develop 
governance, ethical, and practice standards for organizations 
developing and deploying AI to lead the way in protecting consumers 
while fostering AI. AHIP has joined business and technology leaders as 
well as consumer advocates to advance principles, best practices, and 
industry standards. For example, AHIP has worked with the Consumer 
Technology Association on developing standards of trustworthiness and 
recommendations for bias management.\2\, \3\
---------------------------------------------------------------------------
    \2\ https://shop.cta.tech/collections/standards/products/the-use-
of-artificial-intelligence-in-healthcare-trustworthiness-cta-2090.
    \3\ https://shop.cta.tech/a/downloads/-/b5481e81fe7f99aa/
9d1895627bdd6e27.

AHIP is leading a broad-based multi-stakeholder effort to modernize and 
enhance demographic data content standards. Many overlapping and 
incomplete standards exist today. By seeking to ensure that standards 
are culturally sensitive, sufficiently granular, and aligned across 
stakeholders we seek to enable the collection of secure, accurate, 
complete, comparable, actionable, and interoperable data. In turn, 
access to these data will support better outcomes, fewer disparities, 
improved patient trust, and enhanced operational efficiency. Once the 
content standards are complete, exchange standards will be developed 
through the HL7 process. This will ensure we not only have the what but 
also the where (e.g., a questionnaire that can be built into an 
electronic health record or enrollment process) and the how (e.g., the 
ability to exchange the data between trusted partners). This 
information is critical to identifying disparities and determining 
where there may be bias in a model using AI so that bias can be 
---------------------------------------------------------------------------
mitigated and eliminated.

As these efforts evolve, AHIP encourages the Committee to foster 
public-private partnerships to invest in the necessary national 
infrastructure and consolidate and coalesce around common responsible 
standards on AI use.

Recommendations

As the use of AI grows, Americans deserve the peace of mind of knowing 
that it is being used responsibly and for their benefit. Thus, AHIP 
believes there is a need to set guardrails to protect consumers. 
However, those guardrails must reinforce policies that mitigate risks, 
including bias, without stifling innovation.

As the Committee considers AI oversight strategies, we urge you to 
consider ways to develop a streamlined and risk-based approach to 
legislation and oversight. We believe any legislation addressing AI 
should permit programs, practices, and procedures to reflect the 
context, scope, and data use of a specific use case. Legislation should 
allow for industry flexibility to tailor efforts to their unique 
circumstances in order to not impede innovation. AI legislation should 
focus on promoting appropriate governance, transparency, 
explainability, privacy, and mitigation techniques through adherence to 
industry and federal standards.
Implementing a Risk-Based Approach
Legislation should apply a risk-based approach to oversight that 
differentiates between ``high-risk'' or ``high-impact'' AI and low-risk 
AI. For example, the use of deep neural networks in clinical care 
presents more significant risks to patients than deploying simple 
algorithms to support administrative functions. Flexibility to right-
size business practices and mitigation techniques based on risk is 
necessary to realize the potential of AI while avoiding overly 
restrictive, infeasible, or misaligned policies that risk stifling 
innovation.

AHIP strongly encourages the Committee to consider existing national 
frameworks and standards in developing any new legislation. This would 
help avoid duplication and ensure a streamlined oversight structure and 
support continued innovation. For example, the National Institute of 
Standards and Technology (NIST) AI Risk Management Framework, developed 
with robust input from stakeholders, including AHIP, provides a 
foundation for understanding and applying methods for ``tiering'' of 
risks associated with AI.\4\ The NIST AI Framework should be leveraged 
as Congress considers core components of AI legislation, such as 
definitions, to provide consistent direction to regulatory agencies in 
implementing any federal governance and oversight framework.
---------------------------------------------------------------------------
    \4\ https://www.nist.gov/itl/ai-risk-management-framework.

We further encourage the Committee to avoid subjecting all underlying 
AI technology to mandatory outside review or audit. Many health care 
organizations developing AI tools, particularly those who function as 
covered entities under HIPAA, are proactively employing their own risk-
based approaches and optimizing existing data governance structures. 
Only large-scale foundation models, or general-purpose AI should be 
---------------------------------------------------------------------------
required to go through outside testing.

As AI will impact every industry, policymakers should take an ``all-of-
government'' approach towards regulating these tools on a use-specific 
basis, fully leveraging existing industry standards and regulatory 
frameworks. This means balancing consistency across agencies with the 
need to tailor policies within the context of industry-specific use 
cases. For example, HHS, as the primary regulatory body for the health 
care sector, is best positioned to understand the intersection of any 
new AI oversight rules with existing regulatory frameworks, such as 
drug approvals or privacy requirements under HIPAA.
Fostering Transparency and Maintaining Public Trust
Trust is the foundation of our members' engagement with patients and 
consumers. Health insurance providers build and maintain this trust 
today in numerous ways, including by protecting the privacy of patient 
information and promoting tools and resources to support patients' 
active engagement in their health journey. Transparency is a key 
enabler of trust and is a critical component of successful deployment 
and use of AI. Patient, consumer, and caregiver education is critical 
to helping individuals better understand what AI is and how it might be 
used. AI transparency should also include information on what recourse 
individuals have if they believe it has been misused and resources to 
explain potential benefits (e.g., clinical advancements) and potential 
drawbacks (e.g., secondary uses of data). Americans will be more 
trusting of AI-based services with easy to access, understandable, and 
relevant information.
Understanding Accountability within the AI Ecosystem
Successful use of AI to enhance high-quality, equitable, and affordable 
care will depend on responsible approaches to both AI development and 
AI deployment. In the current environment, there are no established 
standards for delineating roles and responsibilities across the AI 
ecosystem, including between AI ``developers'' and ``deployers,'' if an 
adverse outcome occurs from the use of AI. There is also a lack of 
broadly applicable, established standards for transparency or 
disclosure of key elements of AI tools that would enable deployers to 
proactively assess the potential risk of errors or discrimination.\5\ 
We recommend that Congress look to established national frameworks, 
engage trusted federal partners, and leverage learnings from public-
private efforts to inform any legislative policy efforts that address 
accountability in AI use.
---------------------------------------------------------------------------
    \5\ The Office of the National Coordinator for Health IT (ONC) 
Health, Data, Technology, and Interoperability (HTI-1) final rule 
establishes transparency requirements for AI and other predictive 
algorithms that are part of certified health IT such as electronic 
health records. These requirements are applicable only to a narrow set 
of health care AI applications.
---------------------------------------------------------------------------
Improving the Availability and Quality of Demographic Data
AI depends on its underlying data. For AI to function correctly, it is 
essential that the set or sets of data and other elements to calculate 
and achieve what has been programmed can be relied on as part of the 
function and methodology. Improving demographic data standards and 
collection will allow AI developers to build AI tools that benefit more 
people and prevent unintended bias that can result from not 
representing all populations in the data used to build and train AI. 
Congress should support the infrastructure necessary to capture data 
easily and consistently from patients and share it among trusted 
partners through policy changes and adoption of relevant standards by 
federal agencies such as the Office of Management and Budget, the 
Centers for Medicare & Medicaid Services, and the Office of the 
National Coordinator for Health Information Technology.
Leveraging Existing Laws and Regulations
As the Committee considers whether additional safeguards are necessary 
to protect against the potential risks of AI, such as algorithmic 
discrimination, we encourage you to consider how existing laws may 
already sufficiently protect people. Rather than develop numerous, 
conflicting laws and regulations, the federal government and the states 
should work together to leverage existing policies to foster 
transparency while preventing harm from AI.
Ensuring Strong Privacy Protections
Everyone deserves the peace of mind of knowing that their personal 
health information is private, secure, and protected, regardless of who 
holds the data, or the type of technology application being used. As 
Congress considers privacy risks related to AI, AHIP recommends 
evaluating how current regulatory frameworks apply to mitigation of AI 
privacy risks. For example, HIPAA provides a robust framework to 
address privacy issues with respect to use of AI by HIPAA covered 
entities. HIPAA currently applies privacy and security rules to 
population-based programs to improve health or reduce health care 
costs. Across use cases, the same principles that exist in HIPAA 
today--such as minimum necessary, de-identification, notice, access, 
use and disclosure restrictions, and security requirements--should be 
applied to all entities holding health-related data regardless of 
whether AI is used in the process.

In addition to the extensive requirements of the HIPAA Privacy Rule, 
HIPAA covered entities must comply with a patchwork of state laws that 
are often conflicting or, in many cases, duplicative. We urge Congress 
to pass comprehensive national privacy legislation to fill this gap in 
our nation's privacy framework and avoid a 50-state patchwork quilt of 
rules. A coherent federal approach could help promote consistency in 
ensuring that the health data of all individuals is protected, wherever 
they reside or receive care now or in the future, and across a variety 
of services and technologies, to ensure no gaps or conflicts in privacy 
protection exist, including with respect to use of AI-enabled tools.

Congress should also seek to support the development of privacy 
enhancing technologies. AI can be used to further protect consumers 
through techniques such as pseudonymization, homomorphic encryption, 
secure multi-party computation, differential privacy, and zero 
knowledge proofs.

Conclusion

The appropriate use of AI holds great promise for improving health care 
for all Americans. AHIP believes that through public-private 
partnerships we can address the challenges posed by using AI while 
promoting innovation and maintaining American leadership. Engaging a 
diverse set of stakeholders is essential to this success. AHIP thanks 
the Committee for your attention to this critical issue. We look 
forward to working with you and other stakeholders on these important 
efforts.

                                 ______
                                 
                    American Federation of Teachers

                        555 New Jersey Ave., NW

                          Washington, DC 20001

                             (202) 879-4400

                          https://www.aft.org/

February 20, 2024

United States Senate
Committee on Finance
Washington, DC 20510

Re: February 8th Finance Committee Hearing, Artificial Intelligence and 
Health Care: Promise and Pitfalls

Chairman Wyden:

On behalf of the AFT, the fastest-growing healthcare union in the 
nation, representing more than 200,000 healthcare professionals, as 
well as 1.72 million members who utilize the healthcare system, we are 
pleased to offer our thoughts on artificial intelligence for your 
hearing titled Artificial Intelligence and Health Care: Promise and 
Pitfalls.

The AFT believes that any discussion in this area must be centered 
around how artificial intelligence can benefit patients and healthcare 
workers. While there appears to be a useful role for AI in medical 
imaging and fighting cancer (and these positive uses may expand over 
time), AI cannot be used as a tool to replace healthcare professionals 
as a way to lower costs for hospitals and other institutions.

The Expertise of Professionals

I recently convened a meeting of healthcare leaders, and they expressed 
great concern about the impact of AI on patients. Although AI can be 
used to efficiently provide information to healthcare staff, there were 
concerns about using it for monitoring and diagnosis. My members 
offered examples of how having a physical presence in a hospital room 
is essential to properly evaluate, contextualize and determine patient 
care. The AFT supports legislation that ensures clinicians have the 
authority to exercise independent clinical judgment that deviates from 
AI-generated information, in the moment, at the bedside, without threat 
of disciplinary action or other retaliation. Further, workers should be 
at the table and have a voice at every phase of bringing AI into 
patient care--from the inception of the idea and discussions on how AI 
will be used, to testing and evaluating usage on an ongoing basis.

Healthcare Equity

There is a long history of bias in healthcare, and bias continues to 
have an impact ranging from disparities in maternal mortality to the 
development of medical devices like pulse oximeters. The AFT has 
concerns about the development and use of algorithms that may lead to 
biased outcomes. Your recent witness, Dr. Ziad Obermeyer, identified an 
algorithm making decisions using patients' predicted healthcare costs, 
rather than health needs, resulting in reinforced racial biases. The 
doctor also testified that ``unfortunately, many of the biased 
algorithms we studied remain in use today.''\1\ The AFT is glad that 
the Food and Drug Administration has begun the process of seeking to 
regulate AI; and we hope that any recommendations include the frequent 
renewal of FDA authorization, as AI has been shown to potentially 
develop and expand on its own. More broadly, as included in the White 
House ``Blueprint for an AI Bill of Rights,'' \2\ the AFT supports 
ongoing, independent evaluation of AI systems, as well as continued 
community and stakeholder input as systems develop to ensure they are 
assisting in undoing bias, not enforcing it.
---------------------------------------------------------------------------
    \1\ Ziad Obermeyer, M.D., ``AI Will Transform Medicine and the 
Health Care System--for Better or for Worse, Depending on How It Is 
Built and Applied.'' Senate Committee on Finance Hearing: Artificial 
Intelligence and Health Care: Promise and Pitfalls. Feb. 8, 2024. 
https://www.finance.senate.gov/download/02042024-obermeyer-testimony.
    \2\ Office of Science and Technology Policy, ``Blueprint for an AI 
Bill of Rights,'' The White House, Oct. 4, 2022. https://
www.whitehouse.gov/ostp/ai-bill-of-rights/#discrimination.
---------------------------------------------------------------------------

Efficiency vs. Accuracy

Too many of our members have expressed concerns about being taken away 
from the bedside to have to complete documentation and deal with 
bureaucracy within the healthcare system. When AI can be used to reduce 
this paperwork burden in the clinical setting, or to improve note 
taking, it should be. Doing so will enhance and improve the delivery of 
patient care.

However, AI should not be used by payers as a tool to deny claims. Too 
many AFT members--whether they are educators, corrections officers, 
other public employees or healthcare professionals--struggle with 
healthcare affordability; and there have been enough examples of AI 
being used to deny coverage for our members to be concerned.\3\ The 
cases that have been brought to light are likely the tip of the 
iceberg, and patient care must always come before the profits of 
insurance companies. We are glad that the Centers for Medicare & 
Medicaid Services recently issued a notice to Medicare Advantage 
insurers providing guardrails on the use of AI and we hope that 
Congress will also take action to protect patients.\4\
---------------------------------------------------------------------------
    \3\ Lopez and Pugh, ``AI Lawsuits Against Insurers Signal Wave of 
Health Litigation,'' Bloomberg Law, Feb. 1, 2024. https://
news.bloomberglaw.com/health-law-and-business/ai-lawsuits-against-
insurers-signal-wave-of-health-litigation.
    \4\ Bartnick, Cheng, Perumal, ``CMS Confirms Medicare Advantage 
Organizations May Use AI in Making Coverage Determinations,'' Reed 
Smith Client Alerts, Feb. 13, 2024. https://www.reedsmith.com/en/
perspectives/2024/02/cms-confirms-medicare-advantage-organizations-may-
use-ai-in-making-coverage.
---------------------------------------------------------------------------

Worker Protections

While our concerns, and this letter, are primarily focused on the needs 
of patients, as a leader of a labor union, I also want to highlight 
some important guardrails for employer-employee relations and AI. The 
integration of AI systems in the patient care setting, or for 
surveillance, should be recognized as an integral aspect of the working 
conditions and part of collective bargaining. In addition, any tracking 
or monitoring of healthcare workers should comply with all applicable 
privacy laws and regulations. Finally, when AI systems collect data 
about workers, that data should be minimized and not sold or 
commodified.

Thank you for organizing this hearing and considering our views on this 
important subject.

Sincerely,

Randi Weingarten
President

                                 ______
                                 
       American Institute for Medical and Biological Engineering

                       1400 I St., NW, Suite 235

                          Washington, DC 20005

                             (202) 496-9660

                           https://aimbe.org/

AIMBE is a nonprofit, honorific organization representing the most 
accomplished leaders in the fields of medical and biological 
engineering across academia, industry, government, and scientific 
societies. AIMBE's mission is to provide advocacy in medical and 
biological engineering for the benefit of society.

AIMBE Fellows are at the forefront of health care innovation including 
developing artificial intelligence tools and algorithms for use in the 
clinic. Medical AI (also known as Health AI) has the potential to 
positively transform health care in the United States, but only to the 
extent its applications are deployed and utilized in clinical settings. 
Thus, investing in additional AI research, including open-access 
datasets, and incentivizing the use of Medical AI at the point of 
patient care is critical for tangible benefits to care and cost savings 
to be realized.

AI has several applications in medicine that can improve health care 
outcomes for patients through earlier detection, screening, and 
diagnosis. Research in the US has shown that by improving early 
diagnosis and personalizing treatment, AI can enhance the quality of 
medical care in terms of health outcomes and patient experience. For 
instance, lung cancer is associated with a 65% 5-year survival rate 
when it is localized compared to 9% when the disease has metastasized. 
By detecting disease earlier, AI models like Sybil that predict lung 
cancer risk can both save lives and significantly reduce overall cost 
associated with later-stage cancer treatments and care.\1\ Moreover, in 
surgery settings, there is growing evidence that preoperative cognitive 
state is a risk factor for postoperative adverse outcomes. 
Unfortunately, cognition is not assessed systematically pre- and 
postoperatively due to prohibitive costs and time constraints. AI tools 
have recently made it possible to quickly assess cognitive function in 
older adult surgical patients while significantly reducing nurse and 
administrative costs and overhead.\2\ Use of tools such as this would 
greatly improve patient outcomes for the up to 65% of older patients 
that experience delirium and cognitive decline associated with surgical 
procedures each year.\3\
---------------------------------------------------------------------------
    \1\ https://pubmed.ncbi.nlm.nih.gov/36634294/.
    \2\ https://pubmed.ncbi.nlm.nih.gov/37149670/.
    \3\ https://jamanetwork.com/journals/jama/fullarticle/2782851.

As the cost of medical treatment and health care in the United States 
continues to rise, cost-effective and value-based solutions are needed. 
According to CMS data, U.S. health care spending reached $4.3 trillion 
or $12,914 per person in 2021.\4\ As a share of the nation's Gross 
Domestic Product, health spending accounted for 18.3 percent. A recent 
study demonstrates that AI tools can provide tremendous cost savings in 
patient diagnosis and treatment. It is estimated that wider adoption of 
AI could lead to savings of 5 to 10% in U.S. health care spending--
roughly $200 billion to $360 billion annually.\5\
---------------------------------------------------------------------------
    \4\ https://www.cms.gov/data-research/statistics-trends-and-
reports/national-health-expenditure-data/
historical#::text=U.S.%20health%20care%20spending%20grew,For%20addition
al%20
information%2C%20see%20below.
    \5\ https://www.nber.org/papers/w30857.

Despite Medical AI providing cost-effective tools and being a rapidly 
growing area of biomedical research, its applications are severely 
underutilized in hospital and clinical health care settings. Even when 
Medical AI tools are available to clinicians and providers, they are 
disincentivized from using these tools without a reimbursement 
framework. While the US currently leads in the innovation of AI 
applications for medicine, it significantly lags behind the developing 
world in the adoption of its own tools. This gap will continue to widen 
without robust investment in AI research, large, open datasets, and 
prioritization of reimbursement pathways for AI. As a key funder of 
biomedical research in the world, our government has a duty to address 
critical bottlenecks between medical AI innovation and its use to 
---------------------------------------------------------------------------
directly improve patient health care.

Thank you in advance for considering the factors we have outlined in 
this statement. We appreciate the challenges and complexities you face 
as new AI tools are developed in the health sector. We stand ready to 
serve as a resource and assist your efforts as innovation continues and 
new policies and tools are needed.

                                 ______
                                 
                      American Medical Association

                  25 Massachusetts Ave., NW, Suite 600

                          Washington, DC 20001

                             (202) 789-7400

                       https://www.ama-assn.org/

The American Medical Association (AMA) appreciates the opportunity to 
submit the following Statement for the Record to the U.S. Senate 
Committee on Finance as part of the hearing entitled, ``Artificial 
Intelligence and Health Care: Promise and Pitfalls.'' The AMA commends 
the Committee for its consideration of this critically important issue. 
Health care technology is advancing rapidly for many different uses and 
within many different sectors of the health care industry. Ensuring the 
responsible, equitable, ethical, and transparent design, development, 
and deployment of high-performing augmented intelligence (AI)-enabled 
tools within our health care system is a key priority for AMA members 
and our patients.\1\ We strongly encourage the Committee to broadly 
ensure health care AI is considered as a sector of significant national 
concern and importance and to engage with health care stakeholders to 
ensure appropriate policies, standards, and regulatory requirements are 
in place to protect patient safety, promote equity, and ensure the 
quality and performance of the AI-enabled tools in question.
---------------------------------------------------------------------------
    \1\ The AMA refers to AI as ``augmented intelligence''--a crucial 
concept in health care that emphasizes the enhancement of human 
decision-making through AI technologies, rather than replacing human 
expertise, ensuring a synergistic partnership where AI tools assist 
health care professionals in delivering more accurate, efficient, and 
personalized patient care.
---------------------------------------------------------------------------

 AMA Principles for Augmented Intelligence (AI) Development, 
                    Deployment, and Use

AMA's new Principles for Augmented Intelligence (AI) Development, 
Deployment, and Use (https://www.ama-assn.org/system/files/ama-ai-
principles.pdf), look to build on the AMA's 2018 foundational 
principles on AI and seek to provide physician perspective on important 
AI policy topics. These principles represent the AMA's next steps to 
provide guidance and drive change to help protect patients and 
physicians while recognizing the opportunities AI presents. We urge 
policy makers to move swiftly to implement AI guardrails that ensure 
the ethical, equitable, responsible, and transparent implementation of 
AI that both encourages safety and quality while promoting the 
opportunities presented by the emerging technologies.

In developing these principles, AMA members made clear that ensuring 
accurate performance and mitigating risks of AI are of the utmost 
priority. As such, these new principles urge Congress and the 
Administration to move more expediently towards developing national 
governance policies for implementation of AI-enabled technologies.

One key step in enhancing safety and limiting risk is to move 
decisively towards increased transparency requirements for health care 
AI. Physicians and patients must know when they are engaging with AI 
and they must be aware when medical decision-making includes 
consultation with AI-enabled technologies. Developers of AI-enabled 
technologies must disclose information about their products that allow 
purchasers and end users to fully evaluate the tool's appropriateness, 
quality, performance, and risk of bias. We also must work swiftly to 
ensure AI includes strong data privacy protections and minimizes the 
ever-increasing cybersecurity risks continually plaguing hospitals, 
health systems and physician practices.

Additionally, we are growing increasingly concerned about the use of 
automated 
decision-making tools by health insurers, including many payors 
offering Medicare Advantage plans. Numerous reports of these tools 
increasing claims denials and limiting access to vital care show an 
urgent need to limit the use of these technologies in claims 
determinations that result in denials of care and limitations on 
coverage. While certain uses of AI-enabled technologies may increase 
efficiencies and reduce administrative burdens, claims determinations 
should still be reviewed on the health circumstances of the individual 
in question and should not depend on a standardized algorithm treating 
every patient the same. While we support the U.S. Department of Health 
and Human Services' recent policies to curb AI use by Medicare 
Advantage organizations, more must be done to ensure health insurers 
comply with Medicare's rules and do not create barriers to care. We 
strongly urge Congress to ensure that AI-enabled technologies and 
automated decision-making tools are used in limited and appropriate 
circumstances by insurers.

The AMA is pleased to see the growing focus on AI but is concerned 
these technologies will rapidly outpace regulations to ensure quality 
and safety if Congress and the Administration do not move quickly to 
ensure governance policies and guardrails are in place to guide 
implementation. Voluntary agreements among technology companies are 
simply not enough to give physicians and patients the assurances they 
need to pursue use of these tools. Congress and the Administration must 
work closely with not just big tech, but with physicians and patients, 
on appropriate policies to mitigate the potential risks of AI. We will 
only recognize the promise of these emerging technologies if we ensure 
that they are safe and if we can protect our patients from harm.

                      American Medical Association
 Principles for Augmented Intelligence Development, Deployment, and Use

        Approved by AMA Board of Trustees on November 14, 2023 

As the number of Augmented Intelligence (AI)-enabled health care tools 
and systems continue to grow, these technologies must be designed, 
developed, and deployed in a manner that is ethical, equitable, 
responsible, and transparent. With a lagging effort towards adoption of 
national governance policies or oversight of AI, it is critical that 
the physician community engage in development of policies to help 
inform physician and patient education, and guide engagement with these 
new technologies. It is also important that the physician community 
help guide development of these tools in a way that best meets both 
physician and patient needs, and help define their own organization's 
risk tolerance, particularly where AI impacts direct patient care. The 
AMA is committed to ensuring that AI can meet its full potential to 
advance clinical care and improve clinician well-being. This may only 
be accomplished by ensuring that physicians engage only with AI that 
satisfies rigorous standards to meet the goals of the quadruple aim,\2\ 
advance health equity, prioritize patient safety, and limit risks to 
both physicians and patients.
---------------------------------------------------------------------------
    \2\ AI systems should enhance the patient experience of care and 
outcomes, improve population health, reduce overall costs for the 
health care system while increasing value, and support the professional 
satisfaction of physicians and the health care team.

These new principles build on earlier AMA policy development 
activities, including the 2018 foundational AMA AI policy, Augmented 
Intelligence in Medicine,\3\ followed by 2019 policy for payment and 
coverage of AI.\4\ However, as AI has rapidly developed beyond AI-
enabled medical devices, new policy and guidance for adoption of both 
device and non-device uses of AI-enabled technologies is necessary to 
assist in deployment of these new advances to physicians and patients. 
These principles will serve as the foundation for AMA's evolving 
advocacy on AI.
---------------------------------------------------------------------------
    \3\ American Medical Association. (2018). ``AI in Healthcare: A 
Report from the American Medical Association Board of Trustees.'' AMA, 
https://www.ama-assn.org/system/files/2019-08/ai-2018-board-report.pdf 
(Accessed September 14, 2023).
    \4\ American Medical Association. 2019). ``AI in Healthcare: A 
Report from the American Medical Association Board of Trustees--2019.'' 
https://www.ama-assn.org/system/files/2019-08/ai-2019-board-report.pdf 
(Accessed September 14, 2023).

The AMA is dedicated to providing continued guidance to physicians on 
how to best engage with new AI-enabled technologies with the 
understanding that policy development related to AI will likely 
continue to develop given the rapid pace of change in this space.

Oversight of Health Care Augmented Intelligence

There is currently no national policy or governance structure in place 
to guide the development and adoption of non-device AI. While the Food 
and Drug Administration (FDA) regulates AI-enabled medical devices, 
many types of AI-enabled technologies fall outside the scope of FDA 
oversight, including AI that may have clinical applications, such as 
some clinical decision support functions. While the Federal Trade 
Commission and the Health and Human Services Office for Civil Rights 
have oversight over some aspects of AI, their authorities are limited 
and not adequate to ensure appropriate development and deployment of AI 
generally, and specifically in the health care space. The AMA 
encourages a whole of government approach to implement governance 
policies that ensure overall and disparate risks to consumers and 
patients arising from AI are mitigated to the greatest extent possible.

In addition to government, health care institutions, practices, and 
professional societies share some responsibility for appropriate 
oversight and governance of AI-
enabled systems and technologies. Beyond government oversight or 
regulation, purchasers and users of these technologies should have 
appropriate and sufficient policies in place to ensure they are acting 
in accordance with the current standard of care. Similarly, clinical 
experts are best positioned to determine whether AI applications are 
high quality, appropriate, and whether the AI tools are valid from a 
clinical perspective. Clinical experts can best validate the clinical 
knowledge, clinical pathways, and standards of care used in the design 
of AI-enabled tools and can monitor the technology for clinical 
validity as it evolves over time.

      Health care AI must be designed, developed, and deployed in a 
manner which is ethical, equitable, responsible, and transparent.
      Use of AI in health care delivery requires clear national 
governance policies to regulate its adoption and utilization, ensuring 
patient safety, and mitigating inequities. Development of national 
governance policies should include interdepartmental and interagency 
collaboration.
      Compliance with national governance policies is necessary to 
develop AI in an ethical and responsible manner to ensure patient 
safety, quality, and continued access to care. Voluntary agreements or 
voluntary compliance is not sufficient.
      Health care AI requires a risk-based approach where the level of 
scrutiny, validation, and oversight should be proportionate to the 
potential overall or disparate harm and consequences the AI system 
might introduce. [See also Augmented Intelligence in Health Care H-
480.939 at https://policysearch.ama-assn.org/policyfinder/detail/H-
480.939%20?uri=%2FAMADoc%2FHOD.xml-H-480.939.xml.]
      Clinical decisions influenced by AI must be made with specified 
human intervention points during the decision-making process. As the 
potential for patient harm increases, the point in time when a 
physician should utilize their clinical judgment to interpret or act on 
an AI recommendation should occur earlier in the care plan.
      Health care practices and institutions should not utilize AI 
systems or technologies that introduce overall or disparate risk that 
is beyond their capabilities to mitigate. Implementation and 
utilization of AI should avoid exacerbating clinician burden and should 
be designed and deployed in harmony with the clinical workflow.
      Medical specialty societies, clinical experts, and 
informaticists are best positioned and should identify the most 
appropriate uses of AI-enabled technologies relevant to their clinical 
expertise and set the standard of care for AI usage in their specific 
domain. [See Augmented Intelligence in Health Care H-480.940 at https:/
/policysearch.ama-assn.org/policyfinder/detail/H-480.939%20?uri
=%2FAMADoc%2FHOD.xml-H-480.939.xml.]

 When to Disclose: Transparency in Use of Augmented Intelligence-
                    Enabled Systems and Technologies

As implementation of AI-enabled tools and systems continues to 
increase, it is essential that use of AI in health care be transparent 
to both physicians and patients. Transparency requirements should be 
tailored in a way that best suits the needs of the end users. 
Disclosure should contribute to physician and patient knowledge and not 
create unnecessary administrative burden. When AI is utilized in health 
care decision-making, that use should be disclosed and documented in 
order to limit risks to, and mitigate inequities for, both physicians 
and patients, and to allow each to understand how decisions impacting 
patient care or access to care are made. While transparency does not 
necessarily ensure AI-enabled tools are accurate, secure, or fair, it 
is difficult to establish trust if certain characteristics are hidden.

      When AI is used in a manner which directly impacts patient care, 
access to care, or medical decision making, that use of AI should be 
disclosed and documented to both physicians and/or patients in a 
culturally and linguistically appropriate manner. The opportunity for a 
patient or their caregiver to request additional review from a licensed 
clinician should be made available upon request.
      When AI is used in a manner which directly impacts patient care, 
access to care, medical decision making, or the medical record, that 
use of AI should be documented in the medical record.
      AI tools or systems cannot augment, create, or otherwise 
generate records, communications, or other content on behalf of a 
physician without that physician's consent and final review.
      When health care content is generated by generative AI, 
including by large language models, it should be clearly disclosed 
within the content that was generated by an AI-enabled technology.
      When AI or other algorithmic-based systems or programs are 
utilized in ways that impact patient access to care, such as by payors 
to make claims determinations or set coverage limitations, use of those 
systems or programs must be disclosed to impacted parties.
      The use of AI-enabled technologies by hospitals, health systems, 
physician practices, or other entities, where patients engage directly 
with AI should be clearly disclosed to patients at the beginning of the 
encounter or interaction with the AI-enabled technology.

 What to Disclose: Required Disclosures by Health Care Augmented 
                    Intelligence-Enabled Systems and Technologies

Along with significant opportunity to improve patient care, all new 
technologies in health care will likely present certain risks and have 
limitations that physicians must carefully navigate during the early 
stages of clinical implementation of these new systems and tools. AI-
enabled tools are no different and are perhaps more challenging than 
other advances as they present novel and complex questions and risks. 
To best mitigate these risks, it is critical that physicians understand 
AI-driven technologies and have access to certain information about the 
AI tool or system being considered, including how it was trained and 
validated, so that they can assess the quality, performance, equity, 
and utility of the tool to the best of their ability. This information 
may also establish a set of baseline metrics for comparing AI tools. 
Transparency and explainability regarding the design, development, and 
deployment processes should be mandated by law where possible, 
including potential sources of inequity in problem formulation, inputs, 
and implementation. Additionally, sufficient detail should be disclosed 
to allow physicians to determine whether a given AI-enabled tool would 
reasonably apply to the individual patient they are treating. 
Physicians should understand that, where they utilize AI-enabled tools 
and systems without transparency provided by the AI developer, their 
risks of liability for reliance on that AI will likely increase. The 
need for full transparency is greatest where AI-enabled systems have 
greater impacts on direct patient care, such as by AI-enabled medical 
devices, clinical decision support, and interaction with AI-driven 
chatbots. Transparency needs may be somewhat lower where AI is utilized 
for primarily administrative, practice-management functions.

      When AI-enabled systems and technologies are utilized in health 
care, the following information should be disclosed by the AI developer 
to allow the purchaser and/or user (physician) to appropriately 
evaluate the system or technology prior to purchase or utilization:

           Regulatory approval status
           Applicable consensus standards and clinical 
        guidelines utilized in design, development, deployment, and 
        continued use of the technology
           Clear description of problem formulation and 
        intended use accompanied by clear and detailed instructions for 
        use
           Intended population and intended practice 
        setting
           Clear description of any limitations or risks 
        for use, including possible disparate impact
           Description of how impacted populations were 
        engaged during the AI lifecycle
           Detailed information regarding data used to 
        train the model:

                tData provenance
                tData size and completeness
                tData timeframes
                tData diversity
                tData labeling accuracy

           Validation Data/Information and evidence of:

                t Clinical expert validation in intended population and 
                practice setting and intended clinical outcomes
                t Constraint to evidence-based outcomes and mitigation 
                of ``hallucination'' or other output error
                t Algorithmic validation
                t External validation processes for ongoing evaluation 
                of the model performance, e.g., accounting for AI model 
                drift and degradation
                t Comprehensiveness of data and steps taken to mitigate 
                biased outcomes
                t Other relevant performance characteristics, including 
                but not limited to performance characteristics at peer 
                institutions/similar practice settings
                t Post-market surveillance activities aimed at ensuring 
                continued safety, performance, and equity

           Data Use Policy

                t Privacy
                t Security
                t Special considerations for protected populations or 
                groups put at increased risk

           Information regarding maintenance of the 
        algorithm, including any use of active patient data for ongoing 
        training
           Disclosures regarding the composition of design 
        and development team, including diversity and conflicts of 
        interest, and points of physician involvement and review

      Physicians should carefully consider whether or not to engage 
with AI-enabled health care technologies if this information is not 
disclosed by the developer. As the risk of AI being incorrect increases 
risks to patients (such as with clinical applications of AI that impact 
medical decision making), disclosure of this information becomes 
increasingly important. [See also Augmented Intelligence in Health Care 
H-480.939 https://policysearch.ama-assn.org/policyfinder/detail/H-
480.939?uri=%2FAMADoc%2FHOD.xml-H-480.939.xml.]

Generative Augmented Intelligence

Generative AI is a type of AI that can recognize, summarize, translate, 
predict, and generate text and other content based on knowledge gained 
from large datasets. Generative AI tools are finding an increasing 
number of uses in health care, including assistance with administrative 
functions, such as generating office notes, responding to documentation 
requests, and generating patient messages. Additionally, there has been 
increasing discussion about clinical applications of generative AI, 
including use as clinical decision support to provide differential 
diagnoses, early detection, and intervention, and to assist in 
treatment planning. While generative AI tools show tremendous promise 
to make a significant contribution to health care, there are a number 
of potential risks and limitations to consider when using these tools 
in a clinical setting or direct patient care. To manage risk, health 
care organizations should develop and adopt appropriate polices that 
anticipate and minimize negative impacts. Physicians who are 
considering utilizing a generative AI-based tool in their practice 
should ensure that all practice staff are educated on the risks and 
limitations, including patient privacy concerns, and additionally, 
should have appropriate governance policies in place for its use prior 
to adoption.

      Generative AI should: (a) only be used where appropriate 
policies are in place within the practice or other health care 
organization to govern its use and help mitigate associated risks; and 
(b) follow applicable state and federal laws and regulations (e.g., 
HIPAA-compliant Business Associate Agreement).
      Appropriate governance policies should be developed by health 
care organizations and account for and mitigate risks of:

           Incorrect or falsified responses; lack of 
        ability to readily verify the accuracy of responses or the 
        sources used to generate the response
           Training data set limitations that could result 
        in responses that are out of date or otherwise incomplete or 
        inaccurate for all patients or specific populations
           Lack of regulatory or clinical oversight to 
        ensure performance of the tool
           Bias, discrimination, promotion of stereotypes, 
        and disparate impacts on access or outcomes
           Data privacy
           Cybersecurity
           Physician liability associated with the use of 
        generative AI tools

      Health care organizations should work with their AI and other 
health information technology (health IT) system developers to 
implement rigorous data validation and verification protocols to ensure 
that only accurate, comprehensive, and bias managed datasets inform 
generative AI models, thereby safeguarding equitable patient care and 
medical outcomes. [See Augmented Intelligence in Health Care H-480.940 
at https://policysearch.ama-assn.org/policyfinder/detail/H-
480.940?uri=%2FAMADoc%2FHOD.xml-H-480.940.xml.]
      Use of generative AI should incorporate physician and staff 
education about the appropriate use, risks, and benefits of engaging 
with generative AI. Additionally, physicians should engage with 
generative AI tools only when adequate information regarding the 
product is provided to physicians and other users by the developers of 
those tools.
      Clinicians should be aware of the risks of patients engaging 
with generative AI products that produce inaccurate or harmful medical 
information (e.g., patients asking chatbots about symptoms) and should 
be prepared to counsel patients on the limitations of AI-driven medical 
advice.
      Governance policies should prohibit the use of confidential, 
regulated, or proprietary information as prompts for generative AI to 
generate content.
      Data and prompts contributed by users should primarily be used 
by developers to improve the user experience and AI tool quality and 
not simply increase the AI tool's market value or revenue generating 
potential.

 Physician Liability for Use of Augmented Intelligence-Enabled 
                    Technologies

The question of physician liability for use of AI-enabled technologies 
presents novel and complex legal questions and potentially poses risks 
to the successful clinical integration of AI-enabled technologies. As 
legal theories of liability and accountability for AI continue to 
evolve, the AMA will continue to advocate to ensure that physician 
liability for the use of AI-enabled technologies is limited and adheres 
to current legal approaches to medical malpractice.

      Current AMA policy states that liability and incentives should 
be aligned so that the individual(s) or entity(ies) best positioned to 
know the AI system risks and best positioned to avert or mitigate harm 
do so through design, development, validation, and implementation. [See 
Augmented Intelligence in Health Care H-480.939 https://
policysearch.ama-assn.org/policyfinder/detail/H-
480.939%20?uri=%2FAMADoc%2FHOD.xml-H-480.939.xml.]

          Where a mandated use of AI systems prevents 
        mitigation of risk and harm, the individual or entity issuing 
        the mandate must be assigned all applicable liability.
          Developers of autonomous AI systems with clinical 
        applications (screening, diagnosis, treatment) are in the best 
        position to manage issues of liability arising directly from 
        system failure or misdiagnosis and must accept this liability 
        with measures such as maintaining appropriate medical liability 
        insurance and in their agreements with users.
          Health care AI systems that are subject to non-
        disclosure agreements concerning flaws, malfunctions, or 
        patient harm (referred to as gag clauses) must not be covered 
        or paid and the party initiating or enforcing the gag clause 
        assumes liability for any harm.

      When physicians do not know or have reason to know that there 
are concerns about the quality and safety of an AI-enabled technology, 
they should not be held liable for the performance of the technology in 
question.

Data Privacy and Augmented Intelligence

Data privacy is highly relevant to AI development, implementation, and 
use. The AMA is deeply invested in ensuring individual patient rights 
and protections from discrimination remain intact, that these 
assurances are guaranteed, and that the responsibility falls with the 
data holders. AI development, training, and use requires assembling 
large collections of health data. AI machine learning is data hungry; 
it requires massive amounts of data to function properly. Increasingly, 
more electronic health records are interoperable across the health care 
system and, therefore, are accessible by AI trained or deployed in 
medical settings. AI developers may create legal arrangements, e.g., 
business associate agreements, that bring them under the Health 
Insurance Portability and Accountability Act (HIPAA) Privacy and 
Security Rules. Yet even HIPAA cannot protect patients from the ``black 
box'' nature of AI which makes the use of data opaque. AI system 
outputs may also include inferences that reveal personal data or 
previously confidential details about individuals. This can result in a 
lack of accountability and trust and exacerbate data privacy concerns. 
Often, AI developers and implementers are themselves unaware of exactly 
how their products use information to make recommendations.

It is unlikely that physicians or patients will have any clear insight 
into a generative AI tool's conformance to state or federal data 
privacy laws. Large language models (LLM) are trained on data scraped 
from the web and other digital sources (including HIPAA-covered 
environments),\5\ yet few, if any, controls are available to help users 
protect the data they voluntarily enter in a chatbot query. For 
instance, there are often no mechanisms in place for users to request 
data deletion or ensure that their inputs are not stored or used for 
future model training. While tools designed for medical use should 
align with HIPAA, many ``HIPAA-compliant'' generative tools rely on 
antiquated notions of deidentification, i.e., stripping data of 
personal information. With today's advances in computing power, data 
can easily be reidentified. Rather than aiming to make LLMs compliant 
with HIPAA, all health care AI-powered generative tools should be 
designed from the ground up with data privacy in mind.
---------------------------------------------------------------------------
    \5\ Feathers, T., et al. ``Facebook is receiving sensitive medical 
information from hospital websites. The Markup. June 16, 2022.'' 
https://themarkup.org/pixel-hunt/2022/06/16/facebook-is-receiving-
sensitive-medical-information-from-hospital-websites.

The AMA's Privacy Principles (https://www.ama-assn.org/system/files/
2020-05/privacy-principles.pdf) were designed to provide individuals 
with rights and protections and shift the responsibility for privacy to 
third-party data holders. While the Principles are broadly applicable 
to all AI developers, e.g., entities should only collect the minimum 
amount of information needed for a particular purpose, the unique 
nature of LLMs and generative AI warrant special emphasis on entity 
---------------------------------------------------------------------------
responsibility and user education.

Entity Responsibility:

      Entities should make information available about the intended 
use of generative AI in health care and identify the purpose of its 
use. Individuals should know how their data will be used or reused, and 
the potential risks and benefits.
      Individuals should have the right to opt-out, update, or forget 
use of their data in generative AI tools. These rights should encompass 
AI training data and disclosure to other users of the tool.
      Generative AI tools should not reverse engineer, reconstruct, or 
reidentify an individual's originally identifiable data or use 
identifiable data for nonpermitted uses, e.g., when data are permitted 
to conduct quality and safety evaluations. Preventive measures should 
include both legal frameworks and data model protections, e.g., secure 
enclaves, federated learning, and differential privacy.

User Education:

      Users should be provided with training specifically on 
generative AI. Education should address:

          legal, ethical, and equity considerations,
          risks such as data breaches and re-
        identification,
          potential pitfalls of inputting sensitive and 
        personal data, and
          the importance of transparency with patients 
        regarding the use of generative AI and their data.

[See Augmented Intelligence in Health Care H-480.940 at https://policy
search.ama-assn.org/policyfinder/detail/H-
480.940?uri=%2FAMADoc%2FHOD.xml-H-480.940.xml.]

Augmented Intelligence Cybersecurity

Data privacy relies on strong data security measures. There is growing 
concern that cyber criminals will use AI to attack health care 
organizations. AI poses new threats to health IT operations. AI-
operated ransomware and AI-operated malware can be targeted to 
infiltrate health IT systems and automatically exploit vulnerabilities. 
Attackers using ChatGPT can craft convincing or authentic emails and 
use phishing techniques that entice people to click on links--giving 
them access to the entire electronic health record system.

AI is particularly sensitive to the quality of data. Data poisoning is 
the introduction of ``bad'' data into an AI training set, affecting the 
model's output. AI requires large sets of data to build logic and 
patterns used in clinical decision-making. Protecting this source data 
is critical. Threat actors could also introduce input data that 
compromises the overall function of the AI tool. Failure to secure and 
validate these inputs, and corresponding data, can contaminate AI 
models--resulting in patient harm.

Because stringent privacy protections and higher data quality standards 
might slow model development, there could be a tendency to forgo 
essential data privacy and security precautions. However, strengthening 
AI systems against cybersecurity threats is crucial to their 
reliability, resiliency, and safety.

AI cybersecurity considerations:

      AI systems must have strong protections against input 
manipulation and malicious attacks.
      Entities developing or deploying health care AI should regularly 
monitor for anomalies or performance deviations, comparing AI outputs 
against known and normal behavior.
      Independent of an entity's legal responsibility to notify a 
health care provider or organization of a data breach, that entity 
should also act diligently in identifying and notifying the individuals 
themselves of breaches that impact their personal information.
      Users should be provided education on AI cybersecurity 
fundamentals, including specific cybersecurity risks that AI systems 
can face, evolving tactics of AI cyber attackers, and the user's role 
in mitigating threats and reporting suspicious AI behavior or outputs.

 Payor Use of Augmented Intelligence and Automated Decision-Making 
                    Systems

Payors and health plans are increasingly using AI and algorithm-based 
decision-making in an automated fashion to determine coverage limits, 
make claim determinations, and engage in benefit design. Payors should 
leverage automated 
decision-making systems that improve or enhance efficiencies in 
coverage and payment automation, facilitate administrative 
simplification, and reduce workflow burdens. While the use of these 
systems can create efficiencies such as speeding up prior authorization 
and cutting down on paperwork, there is concern these systems are not 
be designed or supervised effectively, creating access barriers for 
patients and limiting essential benefits.

Increasingly, evidence shows that payors are using automated decision-
making systems to deny care more rapidly, often with little or no human 
review. This manifests in the form of increased denials, stricter 
coverage limitations, and constrained benefit offerings. For example, a 
payor allowed an automated system to cut off insurance payments for 
Medicare Advantage patients struggling to recover from severe diseases, 
forcing them to forgo care or pay out of pocket. In some instances, 
payors instantly reject claims on medical grounds without opening or 
reviewing the patient's medical record. There is also a lack of 
transparency in the development of automated decision-making systems. 
Rather than payors making determinations based on individualized 
patient care needs, reports show that decisions are based on algorithms 
developed using average or ``similar patients'' pulled from a database. 
Models that rely on generalized, historical data can also perpetuate 
biases leading to discriminatory practices or less inclusive 
coverage.\6\, \7\, \8\, \9\
---------------------------------------------------------------------------
    \6\ Obermeyer, Ziad, et al. ``Dissecting racial bias in an 
algorithm used to manage the health of populations.'' Science 366.6464 
(2019): 447-453. https://www.science.org/doi/10.1126/science
.aax2342.
    \7\ Ross, C., Herman, B. (2023) ``Medicare Advantage Plans' Use of 
Artificial Intelligence Leads to More Denials.'' https://
www.statnews.com/2023/03/13/medicare-advantage-plans-denial-artificial-
intelligence/ (Accessed September 14, 2023).
    \8\ Rucker, P., Miller, M., Armstrong, D. (2023). ``Cigna and Its 
Algorithm Deny Some Claims for Genetic Testing, ProPublica Finds.'' 
https://www.propublica.org/article/cigna-pxdx-medical-health-insurance-
rejection-claims (Accessed September 14, 2023).
    \9\ Ross, C., Herman, B. (2023). ``Medicare Advantage Algorithms 
Lead to Coverage Denials, With Big Implications for Patients.'' https:/
/www.statnews.com/2023/07/11/medicare-advantage-algorithm-navihealth-
unitedhealth-insurance-coverage/ (Accessed September 14, 2023).

We must ensure that automated decision-making systems do not reduce 
needed care, nor systematically withhold care from specific groups. 
Steps should be taken to ensure that these systems are not overriding 
clinical judgement. Patients and physicians should be informed and 
empowered to question a payor's automated decision-making. There should 
be stronger regulatory oversight, transparency, and audits when payors 
use these systems for coverage, claim determinations, and benefit 
design. [See Use of Augmented Intelligence for Prior Authorization D-
480.956 https://policysearch.ama-assn.org/policyfinder/detail/D-
480.956?uri=%2FAMADoc
%2Fdirectives.xml-D-480.956.xml; Prior Authorization and Utilization 
Management Reform H-320.939, https://policysearch.ama-assn.org/
policyfinder/detail/H-480.
---------------------------------------------------------------------------
939%20?uri=%2FAMADoc%2FHOD.xml-H-480.939.xml.]

      Use of automated decision-making systems that determine coverage 
limits, make claim determinations, and engage in benefit design should 
be publicly reported, based on easily accessible evidence-based 
clinical guidelines (as opposed to proprietary payor criteria), and 
disclosed to both patients and their physician in a way that is easy to 
understand.
      Payors should only use automated decision-making systems to 
improve or enhance efficiencies in coverage and payment automation, 
facilitate administrative simplification, and reduce workflow burdens. 
Automated decision-making systems should never create or exacerbate 
overall or disparate access barriers to needed benefits by increasing 
denials, coverage limitations, or limiting benefit offerings. Use of 
automated decision-making systems should not replace the individualized 
assessment of a patient's specific medical and social circumstances and 
payors' use of such systems should allow for flexibility to override 
automated decisions. Payors should always make determinations based on 
particular patient care needs and not base decisions on algorithms 
developed on ``similar'' or ``like'' patients.
      Payors using automated decision-making systems should disclose 
information about any algorithm training and reference data, including 
where data were sourced and attributes about individuals contained 
within the training data set (e.g., age, race, gender). Payors should 
provide clear evidence that their systems do not discriminate, increase 
inequities, and that protections are in place to mitigate bias.
      Payors using automated decision-making systems should identify 
and cite peer-reviewed studies assessing the system's accuracy measured 
against the outcomes of patients and the validity of the system's 
predictions.
      Any automated decision-making system recommendation that 
indicates limitations or denials of care, at both the initial review 
and appeal levels, should be automatically referred for review to a 
physician (a) possessing a current and valid non-restricted license to 
practice medicine in the state in which the proposed services would be 
provided if authorized and (b) be of the same specialty as the 
physician who typically manages the medical condition or disease or 
provides the health care service involved in the request prior to 
issuance of any final determination. Prior to issuing an adverse 
determination, the treating physician must have the opportunity to 
discuss the medical necessity of the care directly with the physician 
who will be responsible for determining if the care is authorized.
      Individuals impacted by a payor's automated decision-making 
system, including patients and their physicians, must have access to 
all relevant information (including the coverage criteria, results that 
led to the coverage determination, and clinical guidelines used).
      Payors using automated decision-making systems should be 
required to engage in regular system audits to ensure use of the system 
is not increasing overall or disparate claims denials or coverage 
limitations, or otherwise decreasing access to care. Payors using 
automated decision-making systems should make statistics regarding 
systems' approval, denial, and appeal rates available on their website 
(or another publicly available website) in a readily accessible format 
with patient population demographics to report and contextualize equity 
implications of automated decisions. Insurance regulators should 
consider requiring reporting of payor use of automated decision-making 
systems so that they can be monitored for negative and disparate 
impacts on access to care. Payor use of automated decision-making 
systems must conform to all relevant state and federal laws.

We appreciate the Committee's focus on this important and promising 
tool that has the potential to significantly enhance the patient-
physician relationship and improve and streamline the health care 
delivery system. As our comments above suggest, there are many 
considerations that must be thoroughly taken into account to ensure 
that AI delivers on the promise this technology holds to improve our 
nation's health care. National guidelines with stakeholder buy-in that 
include physician and end-user input is a great place to start. The AMA 
and the physician community stand ready to serve as a resource to help 
this Committee and the other Committees of jurisdiction embark on this 
effort.

                                 ______
                                 
                         Asher Informatics PBC

                       6401 Penn Ave., 3rd Floor

                          Pittsburgh, PA 15206

                   https://www.asherinformatics.com/

      Statement of John F. Kalafut, Ph.D., Chief Strategy Officer

Asher Informatics PBC is heartened and encouraged by the hearing on 
``Artificial intelligence and Healthcare: Promise & Pitfalls'' convened 
by Chairman Ron Wyden (D-Oregon) and the Senate Finance Committee. 
Their staff assembled a stellar ensemble of witnesses that, we think, 
brought credible and practical information to their testimony. The 
witnesses represent the varied and important constituencies required to 
develop and maintain credible and equitable policies to responsibly 
catalyze the deployment and use of data-driven and algorithm-based 
interventions in clinical care. While the use of computer-aided 
decision tools and ``AI'' are not new to some areas of medicine (e.g.: 
radiology, anesthesia, neurology, audiology), the recent convergence of 
computational power, curated datasets, and breakthroughs in algorithm 
design allows us to contemplate the use of algorithm-based health 
services (per Peter Shen at Siemen's) across the spectrum of healthcare 
delivery--the back-office to the bedside. This is a nuanced and complex 
domain, however. Creating meaningful health outcomes with the new 
generation of AI tools is not simply allowing ChatGPT to be used across 
a hospital. ``Generative AI'' and its most recognizable interaction 
model--as a ``chatbot''--is not the only type of AI nor is it usually 
the most appropriate type for use in high-risk and mission-critical 
scenarios as in clinical care decisions and treatment planning. 
Understanding the landscape of algorithm-based offerings for healthcare 
requires expertise and insight that already overburdened health systems 
typically don't have.

The ``FOMO'' caused by the over-exuberant promotion of ``genAI'' by 
technology evangelists can potentially lead to health-systems making 
ill-informed decisions about AI adoption, especially if the decisions 
are shaped by large technology firms who are incentivized to sell large 
amount of storage and compute. As Dr. Mark Sendak points out in his 
testimony, if large and well-resourced health-systems are the ones most 
likely to have requisite expertise and infrastructure to deploy and use 
clinical AI effectively, we will again be risking the widening of 
health-inequities. CMS (and private payers) can help ``level the 
playing field,'' though, as suggested by Peter Shen of Siemens 
Healthineers through more uniform payment ``boosts'' or ``add-on'' 
payments to help accelerate the adoption and use of AI applications. 
This is particularly relevant for the broad class of AI applications on 
the market that have received pre-market clearance by the FDA (granted, 
Siemens Healthineers sells many of these types of products).

Doing so would not be without precedent, either. In the late 1990s and 
early 2000s, CMS reimbursement mechanisms that enabled providers to 
receive small, add-on payments if Computer Aided Detection (CAD) 
software was used in the interpretation and reporting of screening 
mammography. Later in the decade, procedural codes and reimbursement 
formulae were also adjusted to allow breast imagers to get small 
reimbursement boosts for using computer vision/processing CAD tools for 
interpreting MRI of the breast. There also were professional 
reimbursement boosts developed for radiologists to use advanced 
visualization software when interpreting some studies. Most of these 
reimbursements have either ended, been dramatically reduced, or will be 
authorized by private payers in very specific encounters. The first 
generation of Breast and Chest CAD did ultimately disappoint when 
larger, effectiveness studies were done and published.

There are multiple reasons for the sub-optimal results and eventual 
dissatisfaction of breast imagers with CAD--technical, usability/human-
factors, data policy, and interoperability flaws. But the reimbursement 
drove the diffusion and use of breast CAD into the clinic which also 
allowed for the broader assessment and measurement of the technology's 
utility. The first CAD product for mammography was approved by the FDA 
in 1998 and the US CMS issued breast CAD reimbursement codes (with 
RVUS) in 2002. By 2008, 74% of all breast mammograms read in the US 
were assisted with the CAD software, increasing to 92% by 2016 [Gao et 
al. reference AJR new frontiers in breast AI/CAD].

One could mistakenly view the experience of first-generation ``AI'' in 
medicine as a lesson in wastefulness driven by non-usable technology 
and therefore any computer-aided intervention or algorithmically 
assisted technology should be rejected outright or be saddled with 
evidence burdens that will stifle innovation because promising methods 
will require clinical evidence and testing that will far outstrip the 
resources of small and medium sized enterprises.

The landscape today is also quite different from the first-generation 
of AI tools in diagnostic medicine; the computational methods are far 
superior, it is easier (though still hard) to aggregate large medical 
datasets, there are more modern paradigms of supporting computational 
applications in health systems, and clinical data are digital and 
somewhat exchangeable across venues for research and clinical utility 
measurement. We think the example of 1st Gen AI is an example of the 
system working! It's not as if the CAD technologies didn't have any 
positive effects or lacked any evidence necessary to allow their 
diffusion. Most healthcare technologies need wider study and assessment 
to arrive at a determination of effectiveness.

To make meaningful improvements to healthcare via technology, we can't 
expect every developer to have the budget or resources of large pharma. 
Similarly, not every health innovation should or requires Randomized 
Control Trials to demonstrate utility. There is an old joke in the bio-
statistics community similar to: ``the RCT for the new parachute system 
was stopped prematurely after the first control-arm subject was 
tested''. There tends to be in certain quarters of medicine a zealot-
like assertion that we shouldn't adopt any new method unless it can be 
run through an RCT. Yes--we need to strive towards strong and 
convincing evidence of all medical interventions, but sometimes common-
sense, realistic constraints, or ``good enough is good enough'' need to 
be considered. Did we really need RCTs to demonstrate that CT scanning 
would cause a seismic shift in patient care? Should there have been 
thousands of sham or real surgeries to open-up patients and compare to 
treatment costs for patients with just images?

                                 ______
                                 
                    Center for AI and Digital Policy

                              Open Gov Hub

                      1100 13th St., NW, Suite 800

                          Washington, DC 20005

February 14, 2024

Chair Ron Wyden
Ranking Member Mike Crapo
U.S. Senate Committee on Finance
219 Dirksen Senate Office Building
Washington, DC 20510

     Re: CAIDP Statement for the Record: ``Artificial Intelligence and 
Health Care: Promise and Pitfalls''

Dear Chairman Wyden, Ranking Member Crapo, and Members of the 
Committee,

    We write to you regarding the hearing on ``Artificial Intelligence 
and Health Care: Promise and Pitfalls.''\1\ The Center for AI and 
Digital Policy (CAIDP) appreciates your leadership on addressing the 
risks and benefits of AI systems and your work towards establishing 
standards of AI governance.
---------------------------------------------------------------------------
    \1\ U.S. Senate Committee on Finance, Artificial Intelligence and 
Health Care: Promise and Pitfalls (Feb. 8, 2024), https://
www.finance.senate.gov/hearings/artificial-intelligence-and-health-
care-promise-and-pitfalls.

    The CAIDP is an independent research and education non-profit based 
in Washington, DC.\2\ Our global network of AI policy experts and 
advocates advises national governments, international organizations, 
and congressional committees regarding artificial intelligence and 
digital policy. Our President, Merve Hickok testified at the first 
congressional hearing on AI last year--``Advances in AI: Are We Ready 
for a Tech Revolution?''\3\ CAIDP routinely provides advice to 
Congressional Committees on matters involving AI policy. We previously 
advised the Senate Judiciary Committee on AI in Criminal 
Prosecutions,\4\ AI and Human Rights,\5\ the Senate HELP Committee on 
AI and Healthcare,\6\ and the Senate Rules Committee on AI and 
Elections.\7\
---------------------------------------------------------------------------
    \2\ CAIDP, About, https://www.caidp.org/about-2/.
    \3\ Testimony and statement for the record of CAIDP President Merve 
Hickok, Advances in AI: Are We Ready For a Tech Revolution?, House 
Committee on Oversight and Accountability, Subcommittee on 
Cybersecurity, Information Technology, and Government Innovation (March 
8, 2023), https://oversight.house.gov/wp-content/uploads/2023/03/Merve-
Hickok_testimony_
March-8th-2023.pdf.
    \4\ CAIDP, Statements, https://www.caidp.org/statements/.
    \5\ CAIDP, Statement to Senate Judiciary Committee on ``AI and 
Human Rights'' (June 13, 2023), https://www.caidp.org/app/download/
8462575863/CAIDP-SJC-06132023.pdf.
    \6\ CAIDP, Statement to Senate HELP Committee on ``Avoiding a 
Cautionary Tale: Policy Considerations for Artificial Intelligence in 
Healthcare'' (Nov. 8, 2023), https://www.caidp.org/app/download/
8487454163/CAIDP-Senate%20HELP-AI-Healthcare-11082023.pdf.
    \7\ CAIDP, Statement to Senate Rules Committee on ``AI and 
Elections'' (September 27, 2023), https://www.caidp.org/app/download/
8478562663/CAIDP-SRC-AI-ELECTIONS-09272023.
pdf.

    We also publish the annual Artificial Intelligence and Democratic 
Values Report,\8\ providing a comprehensive review of AI policies and 
practices in 75 countries.
---------------------------------------------------------------------------
    \8\ CAIDP, Artificial Intelligence and Democratic Values (2023), 
https://www.caidp.org/reports/aidv-2022/.

---------------------------------------------------------------------------
    In brief, our recommendations to this Committee are:

        1)  Exercise oversight of federal agencies tasked with ensuring 
        the responsible use of AI in the health care sector under the 
        Biden AI Executive Order.\9\
---------------------------------------------------------------------------
    \9\ Executive Order 14110 of October 30, 2023, Safe, Secure, and 
Trustworthy Development and Use of Artificial Intelligence, Federal 
Register Vol. 88, No. 210, pg. 75191-75226, https://www.govinfo.gov/
content/pkg/FR-2023-11-01/pdf/2023-24283.pdf.

        2)  Move forward AI legislation. We endorse the Algorithmic 
        Accountability Act of 2023 and the Blumenthal-Hawley Framework 
        for a U.S. AI Act.

AI and Healthcare

    The Food and Drug Administration has allowed medical algorithms 
since 1995, mostly for medical imaging.\10\ The promise of healthcare 
AI has been in efforts to improve drug development, detect diseases 
earlier, and analyze medical data more consistently.\11\ A Wired report 
\12\ highlights extensive bias and discrimination produced by 
predictive systems deployed in mental and physical healthcare, 
impacting non-clinical and diagnostic services. ``Female patients are 
disproportionately misdiagnosed for heart disease and receive 
insufficient or incorrect treatment.''\13\ Another study evidences 
significant racial bias in a widely used pricing algorithm, affecting 
millions of patients \14\ and suggests that remedying this disparity 
would increase the percentage of Black patients receiving proper 
medical care from 17.7 to 46.5%.\15\ The bias arises because the 
algorithm predicts health care costs rather than illness, but unequal 
access to care means that we spend less money caring for Black patients 
than for White patients.
---------------------------------------------------------------------------
    \10\ HealthExec, FDA has now cleared more than 500 healthcare AI 
algorithms (Feb. 6, 2023), https://healthexec.com/topics/artificial-
intelligence/fda-has-now-cleared-more-500-healthcare-ai-algorithms 
[``HealthExec Report''].
    \11\ Congressional Research Service, Artificial Intelligence: 
Overview, Recent Advances, and Considerations for the 118th Congress 
(Aug. 4, 2023), pg. 4, https://crsreports.congress.gov/product/pdf/R/
R47644 [``CRS Report: 118th Congress''].
    \12\ Wired, Health Care Bias Is Dangerous. But So Are ``Fairness'' 
Algorithms (Feb. 8, 2023), https://www.wired.com/story/bias-statistics-
artificial-intelligence-healthcare/.
    \13\ Id.
    \14\ Ziad Obermeyer et al., Dissecting racial bias in an algorithm 
used to manage the health of populations, Science, 366,447-453 (2019), 
DOI:10.1126/science.aax2342, https://www.science.org
/doi/10.1126/science.aax2342.
    \15\ Id.

    The application of AI/ML systems in generating consumer reports and 
insurance scoring decisions pose particular risks for ensuring fair and 
equitable access to healthcare for Americans. Regarding algorithmic 
decision systems in healthcare, CAIDP President Merve Hickok conducted 
a study that highlights the healthcare sector's wealth of data, 
emphasizing the need for safe and ethical development, deployment, and 
implementation of algorithmic tools. Failure to do so could have 
harmful effects on patients' lives, well-being, and safety.\16\
---------------------------------------------------------------------------
    \16\ Merve Hickok, Colleen Dorsey, Tim O'Brien, Dorothea Baur, 
Katrina Ingram, Chhavi Chauhan, Attlee M. Gamundani, Case Study: The 
Distilling of a Biased Algorithmic Decision System through a Business 
Lens, DOI: 10.31235/osf.io/t5dhu; https://osf.io/preprints/socarxiv/
t5dhu/.

    The Congressional Research Service Report highlights concerns 
regarding the accuracy, security, and privacy of AI technologies in 
healthcare. These concerns include the availability of sufficient 
health data, medical liability, consent processes, and patient access. 
Hence, risks associated with AI systems also include misdiagnosis due 
to poor design, amplification of biases in data, and potential 
widespread patient injury if flawed systems are widely adopted.\17\
---------------------------------------------------------------------------
    \17\ CRS Report: 118th Congress, pg. 5.

    The use of AI in diagnostic services, insurance, and medical 
coverage has led to several disputes before the courts on fraud \18\ 
and abusive business practices,\19\ exposing real risks to the public. 
Moreover, the expansion of AI into nonclinical areas of healthcare 
raises critical considerations for patient safety and efficacy. While 
AI algorithms do not require FDA clearance if they do not directly 
impact clinical care,\20\ their deployment in healthcare must align 
with the major goals of improving care access, patient outcomes, and 
health equity.
---------------------------------------------------------------------------
    \18\ Braun v. Ontrak, Inc., 2023 Cal. Super. LEXIS 71440. [Ontrak-A 
program was that the insured patients targeted for recruiting into the 
program were also disproportionately people who were more likely to 
lose their health coverage due to job loss or other causes. As a 
result, although Ontrak would represent to patients that they would not 
be required to pay for Ontrak's services, by the time Ontrak billed its 
insurer customers for the services provided to the patients, the 
clients were often no longer covered by their insurance.]
    \19\ In Re Meta Pixel Healthcare Litigation, 647 F. Supp. 3d 778, 
784. [Plaintiffs are Facebook users who allege that Met improperly 
acquires their confidential health information in violation of state 
and federal law and in contravention of Meta's own policies regarding 
use and collection of Facebook users' data. Each of plaintiffs' 
healthcare providers--MedStar Health System, Rush University System for 
Health, and UK Healthcare--allegedly installed the Meta Pixel on their 
patient portals. Plaintiffs claim that when they logged into their 
patient portal on their medical provider's website, the Pixel 
transmitted certain information to Meta. They contend that this 
information, which is contemporaneously redirected to Meta, revealed 
their status as patients and was monetized by Meta for use in targeted 
advertising.]
    \20\ HealthExec Report.

    Recommendation 1: Exercise oversight of federal agencies tasked 
with ensuring the responsible use of AI in the health care sector under 
---------------------------------------------------------------------------
the Biden AI Executive Order.

    President Biden's Executive Order on the Safe, Secure, and 
Trustworthy Development and Use of Artificial Intelligence \21\ (``AI 
EO'') sets out a comprehensive mandate to establish AI guardrails and 
establish the federal government as a model of accountable AI 
development and use.
---------------------------------------------------------------------------
    \21\ Id.

---------------------------------------------------------------------------
    The Executive Order states:

        Artificial Intelligence policies must be consistent with my 
        Administration's dedication to advancing equity and civil 
        rights. My Administration cannot--and will not--tolerate the 
        use of AI to disadvantage those who are already too often 
        denied equal opportunity and justice. From hiring to housing to 
        healthcare, we have seen what happens when AI use deepens 
        discrimination and bias, rather than improving quality of life. 
        Artificial Intelligence systems deployed irresponsibly have 
        reproduced and intensified existing inequities, caused new 
        types of harmful discrimination, and exacerbated online and 
        physical harms.\22\
---------------------------------------------------------------------------
    \22\ Id., Section 2(d), pg. 75192.

    The Executive Order established Federal authority to ``enforce 
existing consumer protection laws and principles and enact appropriate 
safeguards against fraud, unintended bias, discrimination, 
infringements on privacy, and other harms from AI. Such protections are 
especially important in critical fields like healthcare . . . where 
mistakes by or misuse of AI could harm patients, cost consumers or 
small businesses, or jeopardize safety or rights.''\23\
---------------------------------------------------------------------------
    \23\ Id., pg. 75192-3.

    Section 8 of the AI EO addresses the obligations of the federal 
government for ``Protecting Consumers, Patients, Passengers, and 
Students.''\24\ Notably, the AI EO encourages independent regulatory 
agencies, as they deem appropriate, to use their full range of 
authorities to protect American consumers from fraud, discrimination, 
and threats to privacy and to address other risks that may arise from 
the use of AI and to consider rulemaking, as well as emphasizing or 
clarifying where existing regulations and guidance apply to AI.\25\ To 
achieve such purpose, the AI EO requires the relevant agencies to 
``clarify the responsibility of regulated entities to conduct due 
diligence on and monitor any third-party AI services they use, and 
emphasizing or clarifying requirements and expectations related to the 
transparency of AI models and regulated entities' ability to explain 
their use of AI models.'' \26\
---------------------------------------------------------------------------
    \24\ Id., pg. 75214.
    \25\ Id.
    \26\ Id.

    The AI EO directs the Secretary of the Health and Human Service 
(HHS) to establish an HHS AI Task Force, ``to develop a strategic plan 
that includes policies and frameworks--possibly including regulatory 
action--on responsible deployment and use of AI and AI-enabled 
technologies in the health and human services sector (including 
research and discovery, drug and device safety, healthcare delivery and 
financing, and public health . . . to identify appropriate guidance and 
resources to promote that deployment including in the following areas, 
---------------------------------------------------------------------------
among others:

          Development, maintenance, and use of predictive and 
        generative AI-enabled technologies in healthcare delivery and 
        financing, considering appropriate human oversight of the 
        application of AI-generated output; . . . .
          Incorporation of equity principles in AI-enabled 
        technologies used in the health and human services sector and 
        monitoring algorithmic performance against discrimination and 
        bias in existing models and helping to identify and mitigate 
        discrimination and bias in current systems;
          Incorporation of safety, privacy, and security standards 
        into the software-development lifecycle for protection of 
        personally identifiable information, including measures to 
        address AI-enhanced cybersecurity threats in the health and 
        human services sector; . . . .'' \27\
---------------------------------------------------------------------------
    \27\ Id.

    Chairman Wyden, you have stated, ``As is frequently the case with 
new technology, AI provides us with exciting opportunities to better 
serve the American people, but we're only beginning to see the 
consequences of leaving these systems unchecked. . . . The federal 
government has a responsibility to ensure the systems it is using to 
make decisions that impact Americans' daily lives are doing so 
accurately and without harmful bias.'' \28\
---------------------------------------------------------------------------
    \28\ U.S. Senate Committee on Finance, Crapo, Wyden Press Federal 
Agencies on Use of Artificial Intelligence, Newsroom (Nov. 9. 2023), 
https://www.finance.senate.gov/ranking-members-news/crapo-wyden-press-
federal-agencies-on-use-of-artificial-intelligence.

    We urge this Committee to exercise oversight on the actions to be 
completed by the HHS, specifically developing a robust strategy and 
identifying appropriate guidance and resources to ensure the 
responsible use of AI in healthcare and promote AI regulation based on 
the principles of non-discrimination, privacy protection, transparency, 
traceability, and contestability.

 Recommendation 2: Move forward with comprehensive AI legislation

    We commend the agency actions to guide the appropriate use of AI-- 
including the April 2023 joint statement by the FTC, DOJ, EEOC, and 
CFPB on bias in automated systems,\29\ and the White House Blueprint 
for an AI Bill of Rights.\30\ However, since these measures alone do 
not address the full spectrum of governance required for the 
development, deployment, and use of AI systems, we support the 
Algorithmic Accountability Act \31\ and the Blumenthal-Hawley Bi-
Partisan Framework for U.S. AI Act.\32\ We believe the implementation 
of either of these initiatives would go a long way in filling the 
legislative vacuum in which high-risk AI systems operate.
---------------------------------------------------------------------------
    \29\ EEOC, CRT, FTC, and CFPB, Joint Statement on Enforcement 
Efforts Against Discrimination and Bias in Automated Systems (Apr. 25, 
2023), https://www.ftc.gov/system/files/ftc_gov/pdf/EEOC-CRT-FTC-CFPB-
AI-Joint-Statement%28final%29.pdf.
    \30\ White House Office of Science and Technology Policy, Blueprint 
for an AI Bill of Rights (October 2022), https://www.whitehouse.gov/wp-
content/uploads/2022/10/Blueprint-for-an-AI-Bill-of-Rights.pdf.
    \31\ Office of Senator Cory Booker, Booker, Wyden, Clarke Introduce 
Bicameral Bill to Regulate Use of Artificial Intelligence to Make 
Critical Decisions Like Housing, Employment and Education, Press 
Release (Sept. 21, 2023), https://www.booker.senate.gov/news/press/
booker-wyden-clarke-introduce-bicameral-bill-to-regulate-use-of-
artificial-intelligence-to-make-critical-decisions-like-housing-
employment-and-education.
    \32\ Senator Richard Blumenthal & Senator Josh Hawley, Bipartisan 
Framework for U.S. AI Act, https://www.blumenthal.senate.gov/imo/media/
doc/09072023bipartisanaiframework.pdf.

    Specific to the use of AI in healthcare, we urge the Committee to 
---------------------------------------------------------------------------
consider the following recommendations in developing legislation:

        1)  AI systems should not be used for healthcare contexts where 
        a certified clinical professional is required.
        2)  AI systems should not reinforce bias and discrimination by 
        way of their application in healthcare and should respect data 
        privacy rights of the citizens.
        3)  Healthcare data should be regulated to prevent the current 
        loopholes regarding healthcare or wellness apps which do not 
        fall under HIPAA.
        4)  AI-based health or wellness systems (i.e., Fitbit) should 
        not be used to make determinations for insurance or employment.
        5)  The consumer must be provided with clear, transparent, and 
        complete information about AI-driven decision-making processes, 
        including the subjects and elements involved. Simple processes 
        should be in place for appealing any such decision.
        6)  Affected parties should have a right to contest adverse 
        decisions made by AI systems.
        7)  Implement ex-ante impact assessments and ex-post evaluation 
        or audit mechanisms for any AI system that implicates civil 
        rights or public safety.

    Given the serious challenges, we need federal legislation that 
mandates algorithmic transparency and accountability. We endorse the 
Hawley-Blumenthal bipartisan AI Act, a comprehensive framework for the 
governance of AI and urge this Committee to support the Algorithmic 
Accountability Act 2023 in moving forward to mark-up.

    Thank you for your consideration of our views. We ask that this 
statement be included in the hearing record. We would be pleased to 
provide you and your staff with additional information.

            Sincerely yours,

Marc Rotenberg                      Merve Hickok
Executive Director                  President

Christabel Randolph                 Md Abdul Malek
Law Fellow                          Research Assistant

                                 ______
                                 
                      Connected Health Initiative

                        1401 K St., NW, Ste. 501

                          Washington, DC 20005

February 16, 2024

The Honorable Ron Wyden             The Honorable Mike Crapo
Chairman                            Ranking Member
Senate Finance Committee            Senate Finance Committee
Washington, DC 20515                Washington, DC 20515

RE: Statement for the Record of Brian Scarpelli, executive director of 
the Connected Health Initiative, on the hearing Healthcare and AI: 
Promises and Pitfalls, February 8, 2024

Dear Chairman Wyden, Ranking Member Crapo, and members of the 
Committee:

Thank you for holding this hearing on the topic of healthcare and 
artificial intelligence (AI). As you rightly note, there are both 
promises that we must realize and pitfalls to avoid when considering 
the use of AI systems in health contexts. Congress must ensure that 
federal healthcare policy enables patients and caregivers to leverage 
responsibly-designed AI to its full potential.

The American healthcare system desperately needs support. First and 
foremost, the American population is aging, and life expectancy is 
increasing, with those 65 or older accounting for one out of every five 
Americans by 2030--and 80 percent of those having at least one chronic 
condition. Second, healthcare costs are increasing, having already 
risen to more than approximately $4.3 trillion annually, representing 
at least 17 percent of the U.S. gross domestic product. Finally, and no 
less troubling, the healthcare workforce is experiencing a growing 
shortage, with 30 out of the 35 physician specialties projected to 
experience serious deficits by the 2030s, with rural areas facing the 
brunt. The efficiencies AI offers are vital to overcoming these 
challenges.

The Connected Health Initiative (CHI) is a coalition of stakeholders 
dedicated to responsibly harnessing the power of technology to improve 
patient engagement and health outcomes. We advocate for policies that 
will improve patient outcomes, lower healthcare costs, improve the 
work-life balance of providers, and enable the continuing technological 
revolution across the healthcare ecosystem.

The quadruple aim

AI uses in healthcare range from back-office support and scheduling 
help to clinical decision support, encompassing a wide range of risk 
levels and types. We urge Congress and other policymakers to view the 
proven capabilities of AI in healthcare to assist patients, providers, 
technology developers, and others throughout the healthcare ecosystem 
through the lens of ``quadruple aim'' framework:

    1.  Enhance Patients' Outcomes and Experiences. AI-supported 
interventions and treatments offer the ability to improve individual 
patient outcomes and engagement. Further, AI-supported engagement tools 
can help patients take steps to prevent disease and to stay engaged in 
their care after diagnosis.
    2.  Improve Overall Population Health. AI can help surface trends 
and suggest courses of action to address emerging or persistent health 
issues in population sets. An especially tricky aspect of population 
health management is that unforeseen factors--which are sometimes 
aspects of social determinants of health (SDOH) rather than traditional 
health indicators--often produce significant effects on the health of a 
given demographic. This is where large datasets and powerful analytical 
tools can equip providers and public health officials with actionable 
information and analyses.
    3.  Reduce Costs. AI capabilities have already been shown to be 
critical tools in maximizing efficiencies across the healthcare value 
chain. AI tools are starkly needed to assist in reducing administrative 
costs, as well as in leveraging data collected from outside of the 
doctor's office between visits to support timely care plan updates and 
interventions that save the health system significant costs.
    4.  Improve Healthcare Professionals' Experience. The healthcare 
sector is already experiencing a workforce shortage, with today's 
frontline clinicians at high risk of burnout. AI-supported tools offer 
the opportunity to improve healthcare professionals' experience by 
maximizing efficiencies and capabilities, allowing them to reach more 
patients with better care. Yet, while AI tools are increasing job 
satisfaction and reducing burnout, they are not intended to replace the 
provider.

AI policy principles

As you, the federal agencies, states, and the private sector continue 
to explore how to responsibly bring AI to the healthcare system, CHI 
recommends that policymakers align with CHI's cross-sectoral consensus 
health AI policy principles, which recognize the opportunities and 
challenges AI provides to healthcare and provide baseline 
recommendations across key areas including quality assurance/oversight, 
thoughtful design, access and affordability, and bias detection/
mitigation, and data privacy and security, among other critical 
areas.\1\ Other discrete opportunities for Congress and the federal 
government include:
---------------------------------------------------------------------------
    \1\ CHI Health AI Task Force's deliverables are accessible at 
https://actonline.org/2019/02/06/why-does-healthcare-need-ai-connected-
health-initiative-aims-to-answer-why/.

      Leveraging consensus medical AI terminology \2\ and CHI's cross-
sectoral consensus understanding of the unique roles and 
interdependencies/shared responsibilities amongst the healthcare AI 
value chain \3\ as a baseline for the government's approach to health 
AI;
---------------------------------------------------------------------------
    \2\ E.g., https://www.ama-assn.org/practice-management/cpt/cpt-
appendix-s-ai-taxonomy-medical-services-procedures.
    \3\ https://connectedhi.com/wp-content/uploads/2024/02/CHI-Health-
AI-Roles.pdf.
---------------------------------------------------------------------------
      Building on the leading efforts of the National Institute of 
Standards and Technology's voluntary AI Risk Management Framework \4\ 
and CHI's health-specific recommendations on its development and 
implementation \5\ to ensure that a coordinated approach is taken to 
health AI that scales risk mitigation requirements to intended uses and 
known harms;
---------------------------------------------------------------------------
    \4\ https://www.nist.gov/itl/ai-risk-management-framework.
    \5\ https://actonline.org/wp-content/uploads/Policy-Principles-for-
AI.pdf.
---------------------------------------------------------------------------
      Helping build trust amongst providers and patients by enhancing 
transparency (supporting the sharing of information about the AI's 
intended use, development, performance, etc.) consistent with CHI's 
recommendations in Advancing Transparency for Artificial Intelligence 
in the Healthcare Ecosystem; \6\
---------------------------------------------------------------------------
    \6\ CHI's recommendations on necessary policy changes to enhance 
transparency for healthcare AI are available at https://bit.ly/3Gd6cxs.
---------------------------------------------------------------------------
      Advancing overdue Medicare coverage and payment policy changes 
that appropriately categorize AI (e.g., recognize that AI software as a 
medical device is appropriately categorized and paid for as a direct 
practice expense);
      Responsibly expanding support for its use in the prevention and 
treatment of beneficiaries' acute and chronic conditions;
          Payment and coverage for health care AI systems 
        must be informed by real world workflow and human-centered 
        design principles; enable physicians to prepare for and 
        transition to new care delivery models; support effective 
        communication and engagement between patients, physicians, and 
        the health care team; seamlessly integrate clinical, 
        administrative, and population health management functions into 
        workflow; and seek end-user feedback to support iterative 
        product improvement.
      Ensuring that AI can support the transition to value-based care 
(e.g., eliminating barriers to the responsible use of health AI and 
other innovative technologies in the Merit-based Incentive Payment 
System and in Advanced Alternative Payment Models), consistent with 
recommendations in CHI's Leveraging Digital Health to Realize Value-
Based Care.\7\
---------------------------------------------------------------------------
    \7\ https://connectedhi.com/wp-content/uploads/2022/02/
LeveragingDigitalHealth.pdf.
---------------------------------------------------------------------------
A risk-based approach
Policy frameworks should utilize risk-based approaches to ensure that 
the use of AI in healthcare aligns with recognized standards of safety, 
efficacy, and equity. Providers, technology developers and vendors, 
health systems, insurers, and other stakeholders all benefit from 
understanding the distribution of risk and liability in building, 
testing, and using healthcare AI tools. Policy frameworks addressing 
liability should ensure the appropriate distribution and mitigation of 
risk and liability. Specifically, those in the value chain with the 
ability to minimize risks based on their knowledge and ability to 
mitigate should have appropriate incentives to do so.

CHI has developed a framework for roles and interdependencies in AI 
regulation, which provides a guide for understanding the roles of 
different stakeholders in the AI value chain. Regulation like this 
would help foster a shared sense of responsibility for AI development. 
The framework is appended to this testimony.

Leveraging existing authority

Many of the concerns that advocates have with AI regulation can be 
addressed by existing authority within various agencies. The Food and 
Drug Administration (FDA) already has statutory authority to assess 
medical devices for safety, including devices that use AI. Other 
agencies, including the Federal Communications Commission (FCC) and 
Federal Trade Commission (FTC) apply their existing authority to AI 
scenarios. CHI encourages agencies to apply their statutory authority 
to AI contexts as Congress continues to develop a more nuanced 
framework for handling AI policy.

The WEAR IT Act

To further the adoption of digital medicine and responsible AI in 
healthcare, CHI supports H.R. 6279, the Wearable Equipment Adoption, 
Reinforcement, and Investment in Technology (WEAR IT) Act. The WEAR IT 
Act would allow individuals to access certain wearable health 
technology through their tax-advantaged flexible spending accounts 
(FSAs) and health savings accounts (HSAs). Currently the IRS allows HSA 
and FSA funds to be spent primarily on single-purpose devices. In a 
recent development, the IRS now considers the Oura Ring and the Aura 
Pulse Comprehensive Health Tracker eligible for FSA and HSA 
expenditures, two exceptions to the IRS's general rule against such 
devices. Many cutting-edge wearable health devices have multiple 
functions such as catastrophic fall detection, heart rate monitoring, 
and/or blood oxygen measuring. Although these devices outperform 
covered legacy technology in many cases, they are generally not covered 
(with the exceptions described above) because of the IRS's historical 
interpretation of the law, which is outdated. The IRS has recently 
begun to modernize its approach to HSA and FSA eligibility. However, if 
the WEAR IT Act is enacted, such devices will be covered by FSAs and 
HSAs, giving consumers more choice and additional ways to pursue their 
health goals. Moreover, the integration of AI into these devices can 
also prove to be helpful to consumers as it can help to simplify 
function and provide more detailed information for both the users and 
healthcare providers.

We are seeing the positive effects that AI can have in healthcare and 
as AI technology advances, it is important to promote--and eliminate 
barriers to--its responsible use while ensuring AI is safe and 
effective. We need to ensure that patients are getting the care that 
they need while also making sure that healthcare workers are not 
overburdened to provide high-quality care. We ask the Committee to take 
our points into consideration as policymakers seek avenues to ensure 
AI's continued, responsible integration into healthcare.

            Sincerely,

            Brian Scarpelli
            Executive Director

AI Roles and Interdependencies Framework

CHI urges all stakeholders in the healthcare ecosystem that are 
developing and using AI to align with CHI's consensus health AI 
principles, which recognize the shared responsibility for AI safety, 
efficacy, and transparency. CHI supports (1) leveraging a risk-based 
approach to AI harm mitigation where the level of review, assurance, 
and oversight is proportionate to potential harms and (2) those in the 
value chain with the ability to minimize risks based on their knowledge 
and ability, and having appropriate responsibilities and incentives to 
do so. Further, managing AI/Machine Learning (ML) risks will be more 
challenging for small to medium-sized organizations, depending on their 
capabilities and resources. Building on these general health AI 
principles, CHI proposes clear definitions of stakeholders across the 
healthcare AI value chain, from development to distribution, 
deployment, and end use. Then, CHI suggests roles for supporting 
safety, ethical use, and fairness for each of these important 
stakeholder groups that are intended to illuminate the 
interdependencies between these actors, thus advancing the shared 
responsibility concept. These roles and interdependencies are also 
mapped to the Functions defined in the National Institute of Standards 
and Technology's (NIST's) AI Risk Management Framework (RMF).


--------------------------------------------------------------------------------------------------------------------------------------------------------
     Stakeholder Group                 Definition                                       Roles                                NIST AI RMF Actor Tasks
--------------------------------------------------------------------------------------------------------------------------------------------------------
AI/ML Developers            Someone who designs, codes,
                             researches, or produces an AI/
                             ML system or platform for
                             internal use or for use by a
                             third party.
                                                              Informing deployers and users of data requirements/       AI Deployment; Operation and
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
   Stakeholder Subgroup                               Definition                                                       Roles
--------------------------------------------------------------------------------------------------------------------------------------------------------
Foundation Model Developer  Someone who creates or modifies large and generalizable        Building on the cross-AI/ML Developer roles noted above:
                             machine learning models that can be used/adapted for various   Assessing what bias and safety issues might be present in
                             downstream tasks and applications, such as natural language    its Foundation Model, and documenting steps taken to
                             processing, computer vision, or software development.          mitigate those issues in its Transparency Documentation
                                                                                            (e.g., Transparency Notes, System Cards and product
                                                                                            documentation).
                                                                                            Providing clear guidance on (1) how to use and adapt its
                                                                                            Foundation Model for various foreseeable downstream tasks
                                                                                            and applications, and (2) what limitations or risks may
                                                                                            arise from doing so based on challenges discovered during
                                                                                            testing and deployment.
--------------------------------------------------------------------------------------------------------------------------------------------------------
AI Platform PDeveloper      Someone who leverages existing foundation models and builds    Building on the cross-AI/ML Developer roles noted above:
                             an industry-agnostic platform that enables other developers    Testing for, identifying, and mitigating bias and safety
                             to access, customize, and deploy these models for various      issues that may arise from using or modifying existing
                             use cases and applications, such as natural language           foundation models for its AI Platform, and documenting these
                             processing, computer vision, and/or software development.      issues and steps taken to address them in its transparency
                                                                                            documentation (e.g., transparency notes, system cards and
                                                                                            product documentation).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Health AI Platform          Someone who creates or uses AI-powered platforms that are      Building on the cross-AI/ML Developer roles noted above:
 Developer                   tailored for the healthcare domain, such as administrative     Meeting specific requirements and standards of the
                             efficiency, diagnostics, therapeutics, or research. These      healthcare domain, such as accuracy, efficacy,
                             platforms may leverage foundation models (or other types of    explainability, and compliance with regulations.
                             machine learning models or solutions), such as AI platforms,   Testing for, identifying, and mitigating any bias and
                             that are suitable for specific healthcare problems and data    safety issues that may affect the health outcomes of
                             sources.                                                       patients or the performance of clinicians using the Health
                                                                                            AI Platform, and documenting these issues and the steps it
                                                                                            has taken to address them in its transparency documentation
                                                                                            (e.g., transparency notes, system cards and product
                                                                                            documentation).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Digital Health PSolution    Someone who creates complete digital tools and technologies    Building on the cross-AI/ML Developer responsibilities noted
 Developer                   to improve health and healthcare outcomes, such as providing   above:
                             diagnostic and administrative solutions for clinicians,        Specifying appropriate uses for its digital health solution
                             patients, and healthcare organizations. They may build         to avoid amplifying bias or safety issues that may exist in
                             digital health solutions with both health AI platforms,        the underlying foundation models, AI platforms, or health AI
                             which are specialized for the health care domain, and AI       platforms.
                             platforms, which are more general and adaptable for various    Designing user interfaces to enable an end user to safely
                             use cases and applications.                                    and effectively act upon the output of the tool, such as
                                                                                            providing explanations, feedback mechanisms, or human
                                                                                            oversight options, providing clear documentation to
                                                                                            Deploying Organizations and Users to help them avoid bias
                                                                                            and safety issues.
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                      NIST AI RMF Actor
  Stakeholder Group                         Definition                                               Roles                                  Tasks
--------------------------------------------------------------------------------------------------------------------------------------------------------
Deploying             Someone who is a healthcare providers and health care  Respecting that managing AI/ML risks will be more      AI Deployment;
 POrganization         payors that and is deploying solutions built by        challenging for small to medium-sized organizations    Operation and
 (Healthcare           Digital Health Solution Developers. They may also      depending on their capabilities and resources:         Monitoring; Domain
 Provider or Payor)    have their own internal IT staff that use health AI    Adopting AI/ML Developer instructions for use,        Expert; AI Impact
                       platforms or general AI platforms to develop their     specifying appropriate uses for Users through          Assessment;
                       own custom digital health solutions.                   governance policies to avoid bias and safety issues    Procurement;
                                                                              that may exist in the underlying foundation models,    Governance and
                                                                              AI platforms, or health AI platforms.                  Oversight
                                                                              Developing and leveraging digital health solutions
                                                                              that augment efficiencies in coverage and payment
                                                                              automation, facilitate administrative simplification/
                                                                              reduce workflow burdens, and are fit for purpose.
                                                                              Setting organization policy/designing workflows to
                                                                              reduce the likelihood that a User will act upon the
                                                                              output of the tool in a way that would cause
                                                                              fairness/bias or safety issues (tailored
                                                                              explanations, feedback mechanisms, and/or human
                                                                              oversight options).
                                                                              Developing and organizational guidance on how the
                                                                              digital health solution should and should not be
                                                                              used.
                                                                              Creating risk-based, tailored communications and
                                                                              engagement plans to enable easily understood
                                                                              explains to patients about how the digital health
                                                                              solution was developed, its performance and
                                                                              maintenance, and how it aligns with the latest best
                                                                              practices and regulatory requirements.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Provider/Clinician    Someone who directly interacts with or benefits from   Respecting that managing AI/ML risks will be more      AI Deployment;
 Users and             the digital health solutions that are built by         challenging for small to medium-sized organizations    Operation and
 Administrative        Digital Health Solution Developers or by the           depending on their capabilities and resources:         Monitoring; Domain
 Users                 internal IT staff of the Deploying Organization.       Taking required training and incorporating employer   Expert; AI Impact
                       They may include clinicians, such as doctors,          guidance about use of AI/ML digital health             Assessment;
                       nurses, or pharmacists, and administrative staff,      solutions.                                             Procurement;
                       such as billing, claims, or customer service           Documenting (through automated processes or           Governance and
                       personnel, in the provider and payor organizations.    otherwise) whether AI is being used in medical         Oversight
                                                                              records and report any issues or feedback to the
                                                                              developer, such as errors, vulnerabilities, biases,
                                                                              or harms (where AI/ML's use is known by the User).
                                                                              Ensuring there is appropriate clinician review and
                                                                              review of the output or recommendations from each
                                                                              digital health solution prior to acting on it (where
                                                                              AI/ML's use is known by the User).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Payer Users           Someone that pays for the cost of healthcare services   Leveraging AI/ML systems that improve efficiencies   AI Deployment;
 (Centers for          administered by a healthcare provider.                 in coverage and payment automation, facilitate         Operation and
 Medicare and                                                                 administrative simplification, and reduce provider     Monitoring; Domain
 Medicaid Services                                                            workflow burdens.                                      Expert; AI Impact
 [CMS], State                                                                 Aligning with medical AI/ML definitions, present-     Assessment;
 Medicaid, Private)                                                           day and future AI/ML solutions, the future of AI/ML    Procurement;
                                                                              medical coding changes and trends.                     Governance and
                                                                              Developing support mechanisms for the use of AI/ML    Oversight
                                                                              by providers based on clinical validation, aligning
                                                                              with clinical decision-making processes familiar to
                                                                              providers, and high-quality clinical evidence.
                                                                              Assuring that AI/ML systems allow for the
                                                                              individualized assessment of specific medical and
                                                                              social circumstances and provider flexibility to
                                                                              override automated decisions, ensuring that use of
                                                                              AI/ML does not improperly reduce or withhold care,
                                                                              or overrides the provider's clinical judgement.
                                                                              Disclosing information about training and reference
                                                                              data to demonstrate that AI/ML systems do not create
                                                                              or exacerbate inequities and that protections are in
                                                                              place to mitigate bias.
                                                                              Developing and proliferating easy to understand
                                                                              resources for beneficiaries and their providers that
                                                                              capture how and when AI/ML is being used, what
                                                                              information it is leveraging, and what it means to
                                                                              patients.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Patient Groups/       Someone who uses digital tools and technologies that    Developing and proliferating easy to understand      Human Factors
 Patient Users         are built by Digital Health Solution Developers or     resources that capture how AI/ML is being used and
                       experiences their use in treatment.                    what it means to patients/patient groups, including
                                                                              explanations on the purpose and limitations of the
                                                                              digital health solutions that they use or benefit
                                                                              from (e.g., diagnostic, therapeutic,
                                                                              administrative).
                                                                              Raising awareness of patients' rights and choices
                                                                              when using digital health solutions, such as
                                                                              consent, access, correction, or deletion of their
                                                                              personal data.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Standard-Setting      An organization whose primary function is developing,   Developing and promoting adoption of international   Human Factors;
 Organizations         coordinating, promulgating, revising, amending,        voluntary/non-regulatory consensus standardized        Domain Expert; AI
                       reissuing, interpreting, or otherwise contributing     approaches and resources to steward a shared           Impact Assessment;
                       to the usefulness of technical standards to those      responsibility approach to AI.                         Governance and
                       who employ them.                                                                                              Oversight
--------------------------------------------------------------------------------------------------------------------------------------------------------
Certification Bodies  A certification body is a third-party organization      Creating and making available transparent and        Test, Evaluation,
 & Test Beds           that assures the conformity of a product, process or   reliable processes for the assurance of conformity     Verification, and
                       service to specified requirements.                     to voluntary AI standards.                             Validation (TEVV);
                      A test bed is a platform for conducting rigorous,       Creating and making available voluntary sandbox       Human Factors;
                       transparent, and replicable testing of scientific      environments to help evaluate the usability and        Domain Expert; AI
                       theories, computing tools, and new technologies to a   performance of AI/ML-based high-performance            Impact Assessment;
                       standard.                                              computing applications to advance the understanding    Governance and
                                                                              of how reliable and efficacious AI, and to provide     Oversight
                                                                              an appropriate assurance of reliability and
                                                                              efficacy.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Accrediting and       Accrediting and licensing bodies are governing          Based on clinical needs and expertise, developing    Test, Evaluation,
 Licensing Bodies,     authorities that establish the suitability of any      and setting the medical standard of care and ethical   Verification, and
 and Medical           participating certification body. Notably, state-      guidelines to address emerging issues with the use     Validation (TEVV);
 Specialty Societies   level board serve this purpose for physicians,         of AI/ML in healthcare needed to advance the           Human Factors;
 and Boards            nurses, and other clinicians to standards set by       quadruple aim.                                         Domain Expert; AI
                       each state.                                            Identifying the most appropriate uses of AI-enabled   Impact Assessment;
                      Medical specialty societies are organizations for       technologies and developing and disseminating          Governance and
                       physicians, research and clinical scientists who are   guidance and education on the responsible deployment   Oversight
                       actively involved in the study of a particular         of AI/ML in healthcare, both generally and for
                       specialty.                                             specialty-specific uses.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Academic and          Tertiary educational institutions, professional         Developing and teaching curriculum that will         Human Factors;
 Medical Education     schools, or forms a part of such institutions, that    advance understanding of and ability to use            Domain Expert; AI
 Institutions          teach medicine and awards a professional degree for    healthcare AI/ML solutions responsibly, which should   Impact Assessment
                       physicians or other clinicians.                        be assisted by inclusion of non-clinicians such as
                                                                              data scientists and engineers as instructors.
                                                                              Developing curriculum to advance the understanding
                                                                              of data science research to help inform ethical
                                                                              bodies (e.g., Institutional Review Boards that are
                                                                              reviewing protocols of clinical trials of AI/ML-
                                                                              enabled medical devices).
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                 ______
                                 
                    Federation of American Hospitals

                     750 9th Street, NW, Suite 600

                          Washington, DC 20001

                              202-624-1500

                            FAX 202-737-6462

                          https://www.fah.org/

United States Senate
Committee on Finance

Re: ``Artificial Intelligence and Health Care: Promises and Pitfalls''

    The Federation of American Hospitals (FAH) submits the following 
Statement for the Record in response to the Senate Finance Committee's 
(Committee's) full committee hearing ``Artificial Intelligence: 
Promises and Pitfalls.'' Hospitals are on the front lines of utilizing 
technology and innovation to improve patient experience, care, and 
outcomes. We appreciate the Committee's efforts to understand the use 
of algorithms and artificial intelligence (AI) systems in health care.

    The FAH is the national representative of more than 1,000 tax-
paying community hospitals and health systems throughout the United 
States. FAH members provide patients and communities with access to 
high-quality, affordable care in both urban and rural areas across 46 
states, plus Washington, DC, and Puerto Rico. Our members include 
teaching, acute, inpatient rehabilitation, behavioral health, and long-
term care hospitals and provide a wide range of inpatient, ambulatory, 
post-acute, emergency, children's, and cancer services.

    Hospitals are consistently at the forefront of innovation and 
technology. Our members have seen firsthand the potential AI has to 
unlock efficiency and improve delivery through management and 
orchestration of patient care. Hospitals utilize AI for a wide range of 
activities including enhancing clinical documentation, streamlining 
nurse handoff processes, and optimizing staffing, scheduling, and 
improving care delivery.

    Care delivery, in particular acute care, is a complex matrix of 
activities that requires coordination and engagement between numerous 
stakeholders (e.g., nurses, physicians, pharmacists, technicians, 
patients, and family members). AI is capable of understanding this 
complexity and orchestrating care delivery by identifying the next best 
action to take at any step in the process, ensuring precious time and 
resources are deployed in the most efficient and effective manner. For 
example, regarding bed management, AI could unlock bottlenecks in a 
hospital through understanding the interdependencies of moving patients 
within a hospital (e.g., from the emergency room to an inpatient unit). 
It could select the correct next action (which patient moves next and 
where) that balances the needs of the patients, bandwidth and 
proficiency of the staff, and geography of the care teams assuming 
responsibility. Optimizing these decisions can unlock significant 
capacity in hospitals on a daily basis and improve patient experience.

    Policymakers should encourage the use of generative AI specifically 
designed to simplify access, consumption, and readability of health 
care data. For example, a voice assistant for clinicians to extract 
specific information from large patient history can encourage evidence-
based decisions and reduce clinical errors. Generative AI tools can 
contextually summarize, sequence, and modularize data better than 
static digital systems.

    We urge Congress, regulators, developers of AI tools, and users of 
AI tools to collaborate on appropriate frameworks to maximize the 
safety and efficacy of AI within the health care sector. We note that a 
layered approach would be most appropriate, and legislative and 
regulatory policy should distinguish between whether a health care 
system or organization is developing their own platform and tools for 
internal use, creating a commercial product, or contracting with an 
outside vendor for internal use of a commercial product. It also should 
differentiate between AI uses to augment human decision making versus a 
situation where the output of algorithms is patient facing or directing 
patient care.

    Further, guardrails should address topics such as transparency, 
ethical use, and oversight. The developers of commercial products that 
embed AI tools should make measures available that address issues such 
as how a model works, the data used to train it, appropriate and 
inappropriate uses of the tool, and results of any testing that have 
been done to assess bias to ensure that AI's use in care models 
decreases disparities and does not exacerbate them. Guardrails also 
should address ethical use, i.e., when it is necessary to have ``a 
human in the loop,'' as well as the oversight of AI tools that are in 
use to ensure that they are functioning appropriately. The most 
effective way to regulate AI is to focus on the processes by which AI 
is developed, rather than on the individual algorithms themselves. When 
companies and organizations are developing AI products using a trusted 
process and framework, they have more ability to innovate new products 
and versions while mitigating risk. By focusing on the processes by 
which AI is developed, we can ensure that AI is developed in a manner 
that is safe and ethical.

    Finally, Congress also should give thoughtful consideration to the 
topic of liability, which is a new and challenging aspect of AI. While 
health care providers bear responsibility for the care they provide, 
the developers of commercial AI products must also be accountable if 
safety, bias, or other harms are caused by a flaw in the AI tool 
itself.

    We look forward to working with the Committee on these critical 
issues. If you have any questions or would like to discuss these 
comments further, please do not hesitate to contact me or a member of 
my staff at (202) 624-1534.

Sincerely,

Charles N. Kahn III
President and CEO

                                 ______
                                 
                  Healthcare Confidentiality Coalition
February 5, 2024

Senator Ron Wyden
Chairman
U.S. Senate
Committee on Finance
219 Dirksen Senate Office Building
Washington DC 20510-6300

RE: Full Committee Hearing on ``Artificial Intelligence and Health 
Care: Promise and Pitfalls,'' February 8, 2024

Dear Chairman Wyden:

The Healthcare Confidentiality Coalition (Coalition) thanks you and 
other members of the U.S. Senate Committee on Finance (Committee) for 
holding a hearing titled ``Artificial Intelligence and Health Care: 
Promise and Pitfalls'' on February 8, 2024. We appreciate the 
opportunity to submit this statement for the record.

The Healthcare Confidentiality Coalition is a diverse group of health 
organizations committed to advancing effective and workable health 
information privacy, security, and interoperability policies at the 
federal and state levels. Our mission is to advocate for policies and 
practices that safeguard the privacy and security of patients and 
healthcare consumers while, at the same time, enabling the essential 
flow of patient information that is critical to the timely and 
effective delivery of healthcare, improvements in quality and safety, 
and the development of new lifesaving and life-enhancing medical 
interventions. Our members include hospitals, health systems, medical 
teaching colleges, health plans, pharmaceutical companies, medical 
device manufacturers, vendors of electronic health records, biotech 
firms, employers, health product distributors, pharmacies, pharmacy 
benefit managers, health information and research organizations, and 
others. Through the diversity of our membership, we are able to develop 
a nuanced perspective on the impact of legislation, regulation, and 
other policies affecting the critical flow of essential health 
information.

The hearing could not be timelier or more aptly titled. We strongly 
believe that artificial intelligence (AI) is a transformational tool 
that holds enormous promise for health care, but at the same time 
presents serious potential pitfalls and risks. Guardrails are essential 
to protect against these risks, and we support the efforts by the 
Committee and others in Congress to establish a regulatory framework 
that will appropriately address these risks. This regulatory framework 
must be carefully calibrated to strike the right balance between 
protecting individual rights and patient safety and encouraging 
competition and innovation.

As outlined in the Coalition's Principles for the Responsible 
Development and Use of Artificial Intelligence in Health Care (AI 
Principles), we support an approach to AI regulation that considers a 
national data privacy standard as a foundational element to ensure the 
responsible and beneficial use of AI. We have long been on record 
calling for national privacy legislation to protect personal health 
data, as reflected in our Beyond HIPAA Principles. While the scale and 
sophistication of the collection, use and generation of data as part of 
technological development in all areas has made the need for a national 
data privacy standard an imperative for the advancement of society, 
this is particularly so in AI, which relies on massive amounts of data 
to power its learning.

It is only when individuals have the assurance and confidence that 
their personal data will be use appropriately and responsibly in 
accordance with their reasonable expectations, and safeguarded against 
misuse or misappropriation, that they will embrace technologies such as 
AI, that depend so heavily on this data. Thus, the principles of 
privacy by design should be integrated into AI tools from the start. 
This includes, but should not be limited to, data minimization, use 
limitations and individual rights, such as the right to know, access, 
correct and, if feasible, delete personal information.

Similarly, security safeguards, which may be based on guidelines such 
as those provided in the National Institute of Standards and Technology 
(NIST) Cybersecurity Framework and Risk Management Framework, must be 
implemented to protect against data breaches and other threats that 
could expose the data used or alter the use, behavior, or performance 
of an AI application. Any regulatory framework should take a risk-based 
approach that considers potential impact and possible harms. By 
focusing on a risk-based approach and regulating accordingly, 
regulators will allow developers and users to allocate resources 
appropriately and proportionate to the potential harm and nuances of 
their specific AI use case.

Thank you for your consideration of our comments. Please do not 
hesitate to contact me at tgrande@confcoa.org or 202-750-1989 if you 
have any questions.

Sincerely,

Tina O. Grande
President and CEO

                                 ______
                                 
                     Healthcare Leadership Council
February 8, 2024

The Honorable Ron Wyden             The Honorable Mike Crapo
Chairman                            Ranking Member
Senate Finance Committee            Senate Finance Committee
Dirksen Senate Office Building      Dirksen Senate Office Building
Washington, DC 20510                Washington DC 20510

Dear Chairman Wyden and Ranking Member Crapo:

The Healthcare Leadership Council (HLC) applauds your efforts to ensure 
innovation and safety in the development and use of artificial 
intelligence for healthcare.

HLC is a coalition of chief executives from all disciplines within 
American healthcare. It is the exclusive forum for the nation's 
healthcare leaders to jointly develop policies, plans, and programs to 
achieve their vision of a 21st century healthcare system that makes 
affordable high-quality care accessible to all Americans. Members of 
HLC--hospitals, academic health centers, health plans, pharmaceutical 
companies, medical device manufacturers, laboratories, biotech firms, 
health product distributors, post-acute care providers, homecare 
providers, group purchasing organizations, and information technology 
companies--advocate for measures to increase the quality and efficiency 
of healthcare through a patient-centered approach.

Our members are already familiar with the positive effect AI can have 
in healthcare. For decades traditional rule-based AI has been a tool 
not only to aid administrative burden by automating processes like 
medical billing and recommending codes, but also to provide clinical 
decision support and establish clinical care standards to improve 
quality of care.\1\ For example, the use of AI in the review and 
translation of mammograms is 30 times faster than just a physician with 
99% accuracy, reducing the need for patients to undergo unnecessary 
biopsies and diminishing waste within the sector.\2\
---------------------------------------------------------------------------
    \1\ Exploratory Study of Artificial Intelligence in Healthcare 
(January 2016), 
Exploratory_Study_of_Artificial_Intelligence_in_Healthcare-libre.pdf 
(d1wqtxts1xzle7.cloudfront.net).
    \2\ See https://www.pwc.com/gx/en/industries/healthcare/
publications/ai-robotics-new-health
/transforming-healthcare.html, referencing the California Biomedical 
Research Association. New Drug Development Process. http://www.ca-
biomed.org/pdf/media-kit/fact-sheets/CBRADrug
Develop.pdf.

Now with the emergence of generative AI capable of identifying patterns 
and improving upon user identified if-then procedures, our members see 
an even greater potential for the technology to shape advancements 
across the entire healthcare sector. Researchers are able to integrate 
AI into the fabric of drug discovery to identify leads faster than ever 
before. Pharmacies are able to utilize market data to anticipate demand 
so commonly used medications remain in stock at patients' preferred 
pharmacies, strengthening their role in the supply chain. Clinicians 
are even able to automatically distill their conversations with 
patients into easy-to-understand notes and instructions, ensuring the 
---------------------------------------------------------------------------
increase in care quality is not lost in translation.

The greatest obstacle towards realizing the potential of AI in 
healthcare is building trust in its implementation. As with other 
transformative technologies, these tools will need to be reasonably 
regulated, and guardrails are essential to protect patients from risks 
that emerge when working with health and personal data. It is our hope 
the federal government collaborate with all stakeholders to strike the 
right balance between protecting individual liberties and allowing this 
continued innovation to flourish so the full promise of AI in 
healthcare can be utilized. In collaboration with our members and the 
Healthcare Confidentiality Coalition we have developed a series of 
principles to guide future regulatory framework.

Addressing Adverse Bias and Discrimination

AI applications in health care present the risk of bias as the 
underlying, especially historical, data sets may lack representative or 
accurate data. Access to high quality data sets that are as complete as 
possible, including sensitive personal information (e.g., data on race, 
ethnicity, gender, etc.), is ideal, but not always possible. 
Organizations should then take comprehensive steps to identify and 
mitigate potential sources of harmful bias across the lifecycle of 
their model development, and where reasonable and appropriate for 
specific models, align with industry-developed standards. It is 
important that this not be done by excluding sensitive personal data or 
data of vulnerable groups from AI training data so that any bias may be 
detected and remedied, and all patients may benefit from the advances 
in health care brought about by AI.

Risk-based Approach

Regulatory agencies and organizations using AI applications should take 
a risk-based approach to the regulation and oversight of AI 
applications, taking into account their potential impact and possible 
harms. Organizations should perform risk assessments that align with, 
or extend beyond, consensus-based risk management frameworks such as 
the AI Risk Management Framework (AI RMF) developed by the NIST. An AI 
Risk Assessment should identify potential risks that the AI tool could 
introduce, potential mitigation strategies, detailed explanations of 
recommended uses for the tool, and risks that could arise should the 
tool be used inappropriately.

By focusing on a risk-based approach and regulating accordingly, 
regulators will allow developers and users to allocate resources 
appropriately and proportionate to the potential harm and nuances of 
their specific AI use case. Healthcare applications with the highest 
risk, for example, would in turn have the highest guardrails, such as 
requiring more frequent review or human intervention. Additionally, 
regulators should avoid imposing duplicative compliance requirements, 
and consideration should be given to organizations that follow a 
framework such as the NIST AI RMF in the imposition of penalties.

Federal Standards

Any regulatory framework(s) for AI applications should be developed and 
applied at the federal level. A single national standard that preempts 
state laws in this area will avoid conflicting requirements and 
facilitate compliance without unduly restricting innovation.

Privacy and Security

Personal information used in AI should be subject to robust privacy and 
security protections at the federal level. This includes adhering to 
existing health data privacy and security protections in the Health 
Insurance Portability and Accountability Act of 1996 (HIPAA) for 
protected health information and equivalent protections for non-HIPAA 
health data. The principles of privacy by design should be integrated 
into AI tools from the start. This includes, but should not be limited 
to, data minimization and use limitations. Individuals should have the 
right to be informed about the collection and use of their personal 
information, and the right to access, correct and, if feasible, delete 
their personal information. Congress should establish a single national 
standard for the use of personal information not already subject to 
HIPAA that includes standards for the use of that information in AI 
applications by entities not regulated by HIPAA. Security safeguards, 
which may be based on guidelines such as those provided in the National 
Institute of Standards and Technology (NIST) Cybersecurity Framework 
and Risk Management Framework, should protect against data breaches, 
data poisoning, exfiltration of models or training data and other 
threats that could expose the data used or alter the use, behavior, or 
performance of an AI application.

Harmonization

Federal agencies such as the Office for Civil Rights (OCR), Food and 
Drug Administration (FDA), the U.S. Equal Employment Opportunity 
Commission and the Federal Trade Commission (FTC), among others, should 
collaborate to align the federal government's approach to the 
regulation of AI. OCR and the FDA have worked together in the past to 
align (e.g., on the regulation of medical devices) as do OCR and the 
FTC on health information privacy. This will allow organizations 
subject to the authority of different federal agencies to align their 
approach to implementing AI applications across the enterprise, 
avoiding confusion, and leading to greater compliance.

While each agency may approach the technology from a different 
regulatory angle, whether safety, privacy, consumer protection or 
otherwise, they should be able to take a patient-centered approach to 
reach sufficient alignment so that compliance with one framework will 
not result in violation of, or inability to comply with, another. 
Failure to harmonize regulatory frameworks will not only create 
interpretation and compliance burdens but will slow AI development and 
stifle innovation by creating a regulatory patchwork that fails to 
account for how health care is delivered. Additionally, conflicts 
between federal agencies' regulation of AI will hamper U.S. efforts to 
lead globally in the regulation of AI. Other countries want to adopt a 
framework for the regulation of AI that harmonizes across business 
sectors and regulatory areas, rather than having to deal with 
discordant or conflicting requirements.

Accountability

Health organizations that use AI should determine and establish a risk-
based structure of accountability that extends across its partnerships 
to ensure that their AI use cases are deployed in a responsible, fair, 
and consistent manner. This includes developing, implementing, and 
documenting principles, policies, procedures, as well as an internal 
collaborative governance structure and controls to oversee the 
development and use of AI applications. These controls should include 
quality control parameters for the data used as well as criteria 
against which the performance of the AI applications is monitored, 
evaluated, and re-evaluated, as needed, at regular intervals throughout 
the lifecycle. Accountability should extend to the highest levels of 
management and should include key elements such as risk-assessment, 
training, monitoring and internal sanctions.

Transparency

Transparency is essential to build trust in AI technology. Where 
appropriate, organizations should disclose when they are using AI 
tools, especially when these tools are used to make decisions about 
individuals. Organizations should not be required to reveal the inner 
workings of their AI systems to the public or regulatory agencies, nor 
is there any benefit in doing so. The detailed disclosure of either 
data inputs or algorithmic processes would not be meaningful to 
patients, providers, or payers, would force AI developers to disclose 
their intellectual property or proprietary technology, could create AI 
vulnerability risks, and may limit innovators willingness to work with 
the already highly regulated healthcare industry on meaningful AI 
applications.

Explainability

Developers of AI applications for use in health care must be able 
explain to users how a decision is made by a high-impact AI application 
in a way that is sufficiently understandable. All stakeholders should 
be able to gauge the context in which an algorithm operates and 
understand the implications of the outcomes. Users should in turn be 
able to explain the role of algorithms to individuals affected by AI-
assisted decisions. Explanations should be meaningful and useful, 
tailored to the audience and calibrated to the level of risk.

Thank you for your attention to this important matter. Should you have 
any questions, please contact Sam Carley at 202-449-3445 or 
scarley@hlc.org.

Sincerely,

Maria Ghazal
President and CEO

                                 ______
                                 
                  Medical Group Management Association

                   1717 Pennsylvania Ave., NW, #600.

                          Washington, DC 20006

                             T 202-293-3450

                             F 202-293-2787

                         https://www.mgma.com/

February 7, 2024

The Honorable Ron Wyden             The Honorable Mike Crapo
Chairman                            Ranking Member
Senate Committee on Finance         Senate Committee on Finance
219 Dirksen Senate Office Building  219 Dirksen Senate Office Building
Washington, DC 20510                Washington, DC 20510

Re: MGMA Statement for the Record--Senate Committee on Finance's 
February 8th hearing, ``Artificial Intelligence and Health Care: 
Promise and Pitfalls''

Dear Chairman Wyden and Ranking Member Crapo:

On behalf of our member medical group practices, the Medical Group 
Management Association (MGMA) would like to thank the Committee for the 
opportunity to provide feedback in response to the February 8th 
hearing, ``Artificial Intelligence and Health Care: Promise and 
Pitfalls.'' We appreciate your leadership in examining the impact of 
artificial intelligence (AI) on the healthcare sector.

With a membership of more than 60,000 medical practice administrators, 
executives, and leaders, MGMA represents more than 15,000 group medical 
practices ranging from small private medical practices to large 
national health systems, representing more than 350,000 physicians. 
MGMA's diverse membership uniquely situates us to offer the following 
policy recommendations.

Please find attached MGMA's issue brief reviewing AI and our advocacy 
priorities for your consideration. We are happy to discuss these 
priorities at any time and look forward to collaborating with the 
Committee to craft sensible policies that adequately balance the 
promise of AI technology with its potential risks. If you have any 
questions, please contact James Haynes, Associate Director of 
Government Affairs, at jhaynes@mgma.org or 202-293-3450.

Sincerely,

Anders Gilberg
Senior Vice President, Government Affairs

             MGMA 2024 ARTIFICIAL INTELLIGENCE ISSUE BRIEF

While certain Artificial Intelligence (AI) capabilities have long been 
around in the healthcare space, in recent years there has been a 
significant acceleration in the introduction and adoption of new AI 
technologies. This has led to increased congressional and regulatory 
consideration of how AI operates within the industry and how best to 
regulate its use. MGMA advocates for policies that bolster the 
development and utilization of effective and ethical AI tools to 
improve operational efficiencies for medical groups and support high-
quality patient care.

AI is generally characterized as technology capable of simulating human 
thought and performing real-world tasks. Different organizations and 
government bodies use separate definitions that are context-specific 
but colloquially referred to as AI.

Predictive AI may use algorithms to analyze large amounts of data to 
make predictions, while generative AI is trained on large datasets to 
create new content. Machine learning technology can analyze large 
datasets for patterns and gain insights that are applied to decision 
making; natural language processing allows computers to understand and 
manipulate human language. All told, AI technology can take many forms.

USE OF AI IN HEALTHCARE

AI technology is utilized by medical groups in numerous facets of 
healthcare. AI-enabled tools can do everything from helping revenue 
cycle management by improving medical coding to providing predicative 
analyses of performance areas and assisting in patient communications 
and marketing efforts. New technologies have the potential to augment 
clinical decision making, as well as streamline operations and lower 
administrative costs.

Unfortunately, while AI affords much opportunity for positive change, 
there have been noteworthy examples of the technology being used to 
determinantal effect. Medical group practices have raised concerns that 
certain AI tools may be used to aggravate administrative burdens such 
as mass, rapid denials of prior authorization requests, large language 
models providing ``hallucinations'' or inaccurate answers, and more. AI 
could offer significant benefits to medical groups, but it's important 
to understand the risks and have safeguards in place ahead of more 
widespread adoption.

RECENT ADMINISTRATIVE DEVELOPMENTS

The Biden Administration recently issued an Executive Order \1\ 
focusing on the use of AI in many different sectors of the economy, 
including healthcare. There is no unified national policy to oversee 
the development and deployment of AI; various agencies are tasked with 
regulating certain sections of AI in healthcare such as the Food and 
Drug Administration (FDA) overseeing medical devices utilizing AI. The 
Executive Order signaled a coordinated approach from the federal 
government regarding instituting AI safeguards and included numerous 
directives to federal agencies.
---------------------------------------------------------------------------
    \1\ https://www.whitehouse.gov/briefing-room/statements-releases/
2023/10/30/fact-sheet-president-biden-issues-executive-order-on-safe-
secure-and-trustworthy-artificial-intelligence/.

In response to the Executive Order, 28 healthcare systems and payers--
such as Geisinger, Mass General Brigham, and Sanford Health--signed a 
pledge \2\ committing to align the industry around principles that AI 
should promote healthcare outcomes that are ``Fair, Appropriate, Valid, 
Effective, and Safe (FAVES).'' At least 15 leading companies that 
develop AI technology have since offered similar commitments to the 
White House.
---------------------------------------------------------------------------
    \2\ https://www.whitehouse.gov/briefing-room/blog/2023/12/14/
delivering-on-the-promise-of-ai-to-improve-health-outcomes/.

The Office of the National Coordinator for Health Information 
Technology finalized a rule meant to increase AI transparency near the 
end of 2023. Specifically, the final rule established transparency 
requirements for AI and certain predictive algorithms that are part of 
certified information technology (IT). The agency's approach was to 
ensure that users of certified health IT can access information about 
AI and predictive algorithms, and that the technology follows the FAVES 
principles. Other federal agencies have signaled their intent to issue 
federal regulations on AI in the near future.

CONGRESSIONAL ATTENTION

In an effort to better understand the technology, Congress has held 
numerous forums on AI such as closed-door briefings and hearings in 
anticipation of potentially introducing legislation to regulate the 
industry. Prominent executives from AI companies have testified about 
the potential oversight, while healthcare leaders have addressed both 
chambers on the benefits and challenges associated with AI programs.

Senate Committee on Health, Education, Labor, and Pensions (HELP) 
Ranking Member Bill Cassidy issued a white paper on AI's use in 
healthcare and called for the public's feedback on the regulation and 
development of AI. The white paper \3\ reviewed policy areas that could 
require updated laws and rules, while at the same time examining the 
possibility of AI to help develop new medicines, reduce the workload of 
healthcare providers, and more. This offers an indication of where 
congressional leaders are heading in terms of legislation.
---------------------------------------------------------------------------
    \3\ https://www.help.senate.gov/imo/media/doc/
help_committee_gop_final_ai_white_paper1.
pdf.
---------------------------------------------------------------------------

                          ADVOCACY PRIORITIES

      Medical groups should be able to easily understand the use and 
function of AI products; whether they be a stand-alone product or 
integrated into other technology. Proper transparency and disclosures 
from AI developers are critical to ensuring AI tools work as advertised 
and enhance practice operations.
      Policies should be aligned across agencies to avoid establishing 
competing and confusing standards. Federal regulation of AI should 
adequately balance the promise of AI technological capabilities along 
with the potential risks.
      The deployment of AI should avoid the unintentional exacerbation 
of current administrative hurdles. Federal and private payers should 
not use AI to amplify burdens associated with prior authorization and 
intensify denials of critical patient care.
      Payers must be transparent and provide ample disclosures about 
their use of AI for utilization management, claims processing, and 
coverage limitations. AI automated systems utilized by payers must be 
ethically designed and evidence-based, and should not interfere with 
physician clinical decision making.
      Patient privacy should remain a priority first. Healthcare data 
used to develop and implement AI technology should be subject to 
sensible and robust security and privacy protections.
      All attempts should be made to mitigate discrimination and bias 
in the development and utilization of AI to ensure these systems do not 
perpetuate harmful healthcare inequities.
      Medical Groups, physicians, and other providers should be 
appropriately protected from liability associated with AI as it 
pertains to the conditions of the technology developed outside of the 
practice.

                                 ______
                                 
                        National Health Council
The National Health Council (NHC) appreciates the Senate Finance 
Committee holding this hearing today on ``Artificial Intelligence and 
Health Care: Promise and Pitfalls.'' This is an issue of great 
importance to patients and the patient community. The NHC recognizes 
that this hearing focuses on both the potential benefits and risks of 
artificial intelligence (AI) for patients, as the patient community is 
also acutely focused on this duality. We advance this statement to 
assure that the patient's perspective is front and center in the 
hearing discussion and record, since none of the scheduled witnesses 
directly represent that viewpoint. Moving forward, the patient 
community expects to be included and engaged with policymakers to craft 
appropriate policies that assure that patients--the end users of health 
care--benefit from, and are protected from, the use of AI in health 
care. The NHC is a unique and ready resource on this critical topic.

Created by and for patient organizations over 100 years ago, the NHC 
brings diverse organizations together to forge consensus and drive 
patient-centered health policy. We promote increased access to 
affordable, high-value, equitable, and sustainable health care. Made up 
of 170 national health-related organizations and businesses, the NHC's 
core membership includes the nation's leading patient organizations. 
Other members include health-related associations and nonprofit 
organizations including the provider, research, and family caregiver 
communities; and businesses and organizations representing 
biopharmaceuticals, devices, diagnostics, generics, and payers.

Promises

Advances AI are increasingly being used to transform every facet of 
health care--such as improving accuracy of medical imaging and 
diagnoses, managing provider workflow, and speeding research and 
development pathways--and are having a substantial direct and indirect 
impact on patients. These advances hold tremendous promise to help 
increase the quality, timeliness, and equity of care. However, as the 
Committee recognizes in the title of this hearing, there is also 
tremendous potential for pitfalls that can harm patients, such as 
automating coverage denials. To fully realize AI's promise and minimize 
its pitfalls means that policy and regulatory initiatives must elevate 
and reflect the interests, concerns, and perspectives of patients as 
part of a collaborative approach. One significant concern is the 
ongoing issues of developing AI that could amplify existing biases in 
the health care system. The data and technology used to develop and 
operationalize AI needs to be as free of bias as possible, otherwise 
existing health inequities will be further embedded in care. The NHC 
calls for developers, manufacturers, practitioners, patients, 
policymakers, regulators, and other stakeholders to engage and 
collaborate to continuously improve the safety and quality of AI 
technologies as conditions evolve. All stakeholders must be a part of 
the future of AI in health care, but at the very forefront must be the 
patient community.

Pitfalls

AI has the potential to dramatically improve health care research, 
delivery, and access for patients, but only if its applications are 
implemented in a careful and responsible manner that accounts for and 
minimizes its risks. As the use of AI and other emerging technologies 
evolve and expand, there is a growing need to minimize potential risks 
which includes unintended consequences of use, adverse events, 
overriding patient and provider expertise, inadvertent reinforcement of 
implicit and explicit biases and inequities, inaccuracies in training 
data that lead to hard-to-detect and misleading results, and the 
weakening of patient privacy protections.

Sample Key Components of Responsible AI Use

AI's integration into health care delivery must be grounded in a 
commitment to enhancing patient access to care, advancing the quality 
of care, and improving operational efficiency. This must be achieved 
through thoughtful and effective implementation and careful and 
continuous oversight. The use of AI in health care decision-making must 
also support and supplement, not supplant, human decision-
making, patient preferences, and clinician knowledge. In addition, the 
individuality of each patient must be recognized and supported. To 
achieve this, the NHC urges patient engagement in the development and 
operationalizing of health care tools that rely on AI to assure they 
reflect their needs and preferences.

Everyone, including the patient community, is continuing to learn about 
opportunities and challenges in leveraging AI, as its use continuously 
advances. This means that policies must be flexible enough to encompass 
new and emerging use cases while not undermining the existing policies 
and protections governing the health care industry. Consistent and 
ongoing engagement with patients will be paramount. While our 
perspective will evolve with these technologies, the below list 
demonstrates our current thinking about some of the key components and 
characteristics of the responsible use of AI-enabled technologies in 
health care from a patient perspective:

      AI applications in health care must be trustworthy, unbiased, 
ethical, fair, appropriate, valid, effective, safe, grounded in 
evidence, subject to governance controls and meaningful oversight, and 
safeguarded by robust privacy and security.
      AI must be used to advance health equity and not further drive 
health disparities.
      AI tools that will be used in health care, particularly those 
that are used by patients and/or directly affect patient care or 
coverage, must be developed with patient input into the effect of 
algorithms, devices, and other aspects of AI creation, use, and 
analysis.
      Expert human oversight of many AI uses is critical to 
maintaining safety and accuracy and ensuring continuous improvements to 
retrain as conditions change.
      Pre-deployment testing should be conducted in a diverse range of 
real-world clinical settings.
      Information derived from AI-enabled outputs to inform health 
care decision-making should:
            Be accessible, explainable, reproducible, and 
        understandable to the intended audience;
            Detail the benefits and limitations of a given 
        AI-enabled technology;
            Have privacy and security standards for 
        safeguarding patient information in place; and
            Mitigate potential biases that could exacerbate 
        health disparities and promote health equity.
      Robust and continuous feedback loops should be created, 
leveraged, and optimized to identify and mitigate the risk of harms.
      Users should be properly trained on intended applications, 
system capabilities and limitations, real-world use cases, and the 
probabilistic nature of AI.

Conclusion

The NHC values this opportunity to engage in this critical dialogue on 
AI in health care. Please do not hesitate to contact Eric Gascho, 
Senior Vice President of Policy and Government Affairs, if you or your 
staff would like to discuss these comments in greater detail. He is 
reachable via e-mail at egascho@nhcouncil.org.

                                 ______
                                 
                      National Health Law Program

                     1444 I Street, NW, Suite 1105

                          Washington, DC 20005

                             (202) 289-7661

                         https://healthlaw.org/

The National Health Law Program (``NHeLP'') submits this testimony to 
the Senate Finance Committee regarding the use of algorithms and 
artificial intelligence (AI) systems in health care. NHeLP is a public 
interest law firm that fights for equitable access to quality health 
care for people with low incomes and underserved populations, and for 
health equity for all. For over 50 years, we have litigated to enforce 
health care and civil rights laws, advocated for better federal and 
state health laws and policies, and trained, supported, and partnered 
with health and civil rights advocates across the country. NHeLP's 
testimony is based on our long history of advocacy to protect Medicaid 
beneficiaries against harmful automated decision-making systems (ADS), 
such as algorithms and AI.

For decades NHeLP has identified errors, discrimination, and due 
process violations in ADS and fought against them. We have real-world 
experience fighting the harm caused by technology in public benefits, 
knowledge about the how and why such harms occur, and practical ideas 
about policies necessary to protect against such harms.\1\ This 
experience gives us a different and needed perspective on policy 
efforts to protect against harmful AI. We understand what the systems 
look like on the ground and how they impact people's rights. As part of 
our work to ensure technology helps rather than harms Medicaid 
enrollees, NHeLP has partnered with other advocates, including tech 
justice advocates, to advance protections in public benefits programs 
so that people are not wrongfully denied benefits they need. For 
example, we have partnered with Upturn and Legal Aid of Arkansas to 
form the Benefits Tech Advocacy Hub to give advocates tools to fight 
harmful benefits technology and force greater transparency so that harm 
to individuals can be identified, prevented, or reduced earlier in the 
technology's lifecycle. In addition to ongoing advocacy regarding 
individual ADS, NHeLP has also released our Principles for Fairer, More 
Responsive Automated Decision-Making Systems (``ADS Principles''), 
which reflect our years of work regarding ADS, including AI, and what 
features and protections are needed in responsible ADS.
---------------------------------------------------------------------------
    \1\ See Nat'l Health Law Program, Fairness in Automated Decision 
Making Systems, https://healthlaw.org/algorithms/.

In the past several years as interest in algorithmic accountability has 
grown, we consistently see proposals to mitigate the harms of ADS that 
fail to recognize the impact on public benefits, for which it is well-
recognized that people have a ``brutal need.''\2\ Protections of 
notice, transparency, and explainability already exist, are 
constitutionally required, and must be fully recognized and enforced in 
any AI policies that impact public benefits.\3\ We welcome the 
opportunity to offer testimony to this Committee. NHeLP asks that this 
Committee:
---------------------------------------------------------------------------
    \2\ Goldberg v. Kelly, 397 U.S. 254 (1970).
    \3\ Id.; see also Jane Perkins, Nat'l Health Law Program, Demanding 
Ascertainable Standards, Nat'l Health Law Program (June 11, 2021), 
https://healthlaw.org/resource/demanding-ascertainable-standards-
medicaid-as-a-case-study/.

      Use a broad definition of AI to include all of the types of AI 
---------------------------------------------------------------------------
currently causing harm to people's access to care.

      Embrace NHeLP's ADS Principles regarding transparency, 
protection of civil rights, user-focus, validity, mitigation of bias, 
and humility and redundancy as well as the work of the Benefits Tech 
Advocacy Hub in the Committee's work on algorithms and AI systems in 
health care.

      Recognize that individuals receiving health care provided 
through a public benefit program such as Medicaid have specific rights 
and protections that demand greater transparency, nondiscrimination, 
and accountability than many AI fairness proposals include; these 
rights cannot be ignored in legislative approaches. We also ask that 
business interests such as trade secret protections not be allowed to 
stand in the way of transparency about the source, testing, and 
decision-making of AI.

 AI Protections Must Include a Broad Definition of AI to Address 
                    Current ADS Harms

Automation can facilitate access to benefits and increase efficiency, 
but ADS that is poorly designed, based on biased research or data sets, 
not implemented with appropriate testing, and not adequately monitored 
creates significant harm. Particularly in Medicaid, this harm affects 
people who have very few resources to absorb it.\4\ When ADS harms 
Medicaid recipients, they have life altering losses of benefits; this 
loss of Medicaid coverage is a well-recognized harm.\5\ However, not 
all ADS creating harms in Medicaid meet all definitions of AI. For 
example, when asked to inventory AI use cases in response to Executive 
Order 13960 regarding the use of trustworthy AI in the federal 
government, the Department of Health and Human Services created a 
three-page list.\6\ This list does not include the Federal Marketplace 
for health care coverage that processed applications and plan selection 
for over 20 million people, with more being transferred to Medicaid, 
through an automated system that implements a complex system of 
eligibility rules, including state specific rules, to determine whether 
a person is eligible for health coverage or not.\7\ While the Federal 
Marketplace, like many ADS in Medicaid that have caused harm, is not a 
complex machine learning version of AI, it is the type of AI that can 
and has caused immense harm to people who are wrongly determined 
ineligible for coverage or assistance paying their premiums. Nor did 
HHS's list include the millions upon millions of federal dollars that 
have been spent building state automated eligibility systems, many of 
which have or have had significant issues, causing improper 
terminations of Medicaid coverage and harm millions of individuals.\8\ 
These Medicaid eligibility systems annually process the nearly 90 
million people enrolled in Medicaid and CHIP throughout the country.\9\
---------------------------------------------------------------------------
    \4\ See, e.g., Sarah Grusin et al., Nat'l Health Law Program, FTC 
Complaint: Request for Investigation into Deloitte's Texas Medicaid 
Eligibility System 30-37 (Jan. 31, 2024), https://healthlaw.org/
resource/ftc-complaint-request-for-investigation-into-deloittes-texas-
medicaid-eligibility-system/.
    \5\ See, e.g., Smith v. Benson, 703 F. Supp. 2d 1262 (S.D. Fla. 
2010); Benjamin D. Sommers et al., Health Insurance Coverage and 
Health--What the Recent Evidence Tells Us, 377 New England J. Medic. 
586 (2017), http://www.nejm.org/doi/full/10.1056/NEJMsb1706645; 
Benjamin D. Sommers, State Medicaid Expansions and Mortality, 
Revisited: A Cost-Benefit Analysis, 3 Am. J. of Health Econs. 392 
(2017), https://dash.harvard.edu/bitstream/handle/1/27305958/
Mcaid%20Mortality%20Revisited%20DASH%20Version.pdf?sequence=1&isAllowed=
y; Allyson G. Hall et al., Lapses in Medicaid Coverage: Impact on Cost 
and Utilization Among Individuals with Diabetes Enrolled in Medicaid, 
48 Medic. Care 1219 (2008); Andrew Bindman et al., Interruptions in 
Medicaid Coverage and Risk for Hospitalization for Ambulatory Care-
Sensitive Conditions, 149 Annals Internal Med. (2008), https://
www.commonwealthfund.org/publications/journal-article/2008/dec/
interruptions-medicaid-coverage-and-risk-hospitalization; Steffie 
Woolhandler & David U. Himmelstein, The Relationship of Health 
Insurance and Mortality: Is Lack of Insurance Deadly?, 167 Ann. Intern. 
Med. 424 (2017), http://annals.org/aim/fullarticle/2635326/
relationship-health-insurance-mortality-lack-insurance-deadly; Aviva 
Aron-Dine, Ctr. on Budget and Policy Priorities, Eligibility 
Restrictions in Recent Medicaid Waivers Would Cause Many Thousands of 
People to Become Uninsured (Aug. 9 2018), https://www.cbpp.org/sites/
default/files/atoms/files/8-9-18health.pdf.
    \6\ U.S. Dep't of Health & Human Servs., Department of Health and 
Human Services: Artificial Intelligence Use Cases Inventory, https://
www.hhs.gov/about/agencies/asa/ocio/ai/use-cases/index.html.
    \7\ Ctrs. for Medicare & Medicaid Servs., Under the Biden-Harris 
Administration, Over 20 Million Selected Affordable Health Coverage in 
ACA Marketplace Since Start of Open Enrollment Period, a Record High 
(Jan. 10, 2024), https://www.cms.gov/newsroom/press-releases/under-
biden-harris-administration-over-20-million-selected-affordable-health-
coverage-aca.
    \8\ See, e.g., TX FTC Complaint supra note 4, at 12-21.
    \9\ Medicaid.gov, October 2023 Medicaid & CHIP Enrollment Data 
Highlights, https://www.medicaid.gov/medicaid/program-information/
medicaid-and-chip-enrollment-data/report-highlights/index.html.

Both the NHeLP and Benefits Tech Advocacy Hub websites include examples 
of harm from various types of AI in Medicaid. Wrongful decisions by AI 
in Medicaid have caused people to lose health care coverage for which 
they were eligible and not be able to fix the problem without advocacy 
intervention, lose eligibility for and need hours of critical home and 
community-based services (HCBS) that keeps people safe and healthy in 
their homes and out of institutions. They have also denied needed care 
through harmful prior authorization tools based in fiscal decisions 
rather than generally accepted standards of care.\10\ Regardless of the 
level of sophistication or complexity of the AI, protections must be in 
place. The harm from machine learning is no greater than that generated 
by an algorithm written by a State Medicaid agency or its contractor to 
determine eligibility for HCBS--both deny critical care and cause life-
long harm. We ask that this Committee not be distracted by the 
complexity of AI such as machine learning, but recognize that any 
legislative action regarding AI should be broadly inclusive in order to 
protect against harm.
---------------------------------------------------------------------------
    \10\ See generally Benefits Tech Advocacy Hub, Case Studies 
Library, https://www.btah.org/case-studies.html.
---------------------------------------------------------------------------

Embrace NHeLP's Expertise and that of its Partners

NHeLP's long history of advocacy on ADS issues has led us to think 
about preventive advocacy rather than only addressing ADS after they 
have begun to harm individuals. Our ADS Principles and work with the 
Benefits Tech Advocacy Hub recognize that there are benefits to 
automation, but those must be realized while minimizing the drawbacks. 
There must be thoughtful policy interventions that address each step of 
the ADS lifecycle so that harm can be recognized, evaluated, and 
remediated. Our recent experiences, including those related to the 
unwinding of the Medicaid continuous coverage provisions during the 
public health emergency, reiterate to us that ADS are often generating 
harmful, yet preventable, errors.\11\ Importantly, our work understands 
that ADS, even if carefully created and monitored, is likely going to 
have errors either because of the system or because of user interaction 
with the system. Therefore, we have thought through both the 
protections needed for the system itself and the processes around the 
system that should function as a safety net to prevent harm.
---------------------------------------------------------------------------
    \11\ See, e.g., Nat'l Health Law Program, Fairness in Automated 
Decision Making, https://healthlaw.org/algorithms/; TX FTC complaint, 
supra note 4.

A key part of NHeLP's work is our relationships with advocates across 
the country.\12\ These relationships are critical to our ADS work 
because they help identify systems that are proposed or are actively 
generating harm. Our work and that of our partners, including our tech 
justice partners, means we have real-world examples of problems, their 
impact on individuals, and solutions for preventing those harms. Our 
community and partners have the right mix of knowledge, including legal 
and technical, to identify problems and solutions that will actually 
work.
---------------------------------------------------------------------------
    \12\ See, e.g., Nat'l Health Law Program, Health Law Partnerships, 
https://healthlaw.org/health-law-partnerships/.
---------------------------------------------------------------------------

 Preventing Harm from AI in Health Care Must Incorporate Existing Legal 
                    Rights

New AI fairness and accountability principles have been emerging over 
the past several years, but not all of them recognize existing legal 
rights in recommendations of transparency and protections against bias. 
And few tackle the significant barrier to transparency of trade secret 
and similar protections. While we recognize the business interests in 
technology, key legal rights of those impacted by the technology must 
be acknowledged in AI policy efforts. Importantly, some level of 
transparency is required when ADS is making decisions about public 
benefits due to constitutional due process requirements.\13\ This is 
not ``optional'' or a ``best practice.'' In addition, public benefits 
ADS transparency may also be required by other laws, including public 
records.\14\
---------------------------------------------------------------------------
    \13\ Perkins, supra note 3.
    \14\ See, e.g., K.W. by D.W. v. Armstrong, No. 1:12-CV-00022-BLW-
CWD, 2023 WL 5431801 (D. Idaho Aug. 23, 2023) (ordering disclosure of 
manual information related to algorithm for services was necessary to 
comply with due process and did not infringe upon copyright 
restrictions); Salazar v. D.C., 750 F. Supp. 2d 65 (D.D.C. 2010) 
(providing limited protected order to disclosed standards that were 
asserted to be protected by business interests); Arkansas Dep't of 
Com., Div. of Workforce Servs. v. Legal Aid of Arkansas, 2022 Ar. 130, 
546 S.W.3d 9 (2022) (finding trade secret protections in public records 
did not limit beneficiary access to algorithm used in unemployment 
algorithm).

As described in NHeLP's ADS Principles regarding transparency, without 
transparency throughout the lifecycle of an ADS, problems and the harms 
they cause will likely come to light only when sufficient numbers of 
people are harmed to identify there is a problem. But even then, if 
transparency is not required, that the ADS is at fault and what needs 
to be addressed cannot occur and harm is likely to continue. For many 
impacted by ADS in Medicaid, once the harm has occurred, it is not 
easily ameliorated either because they do not readily return to the 
program, they have difficulty re-enrolling, or the service denial 
causes a domino effect of harms.\15\
---------------------------------------------------------------------------
    \15\ Sarah Sugar et al., ASPE Office of Health Policy, Medicaid 
Churning and Continuity of Care: Evidence and Policy Considerations 
Before and After the COVID-19 Pandemic (Apr. 12, 2021), https://
aspe.hhs.gov/sites/default/files/migrated_legacy_files//199881/
medicaid-churning-ib.pdf (finding that Medicaid churn leads to periods 
of uninsurance, delayed care, and less preventative care for 
beneficiaries and higher administrative costs, less predictable state 
expenditures, and higher monthly care costs); Sophie Novack, As Texas 
Throws 1.8 Million Off Medicaid, Children Pay the Price, Texas Monthly 
(Jan. 25, 2024), https://www.texasmonthly.
com/news-politics/medicaid-disenrollment-texas-children/ (describing 
the impact of eligibility system requesting documentation it should 
already have access to and a child losing services and enrollment in 
treatment program critical to her walking and balance); Sarah Grusin & 
Elizabeth Edwards, Nat'l Health Law Program, Recent Filing in Lawsuit 
Describes Medicaid Unwinding Harms in Tennessee (Aug. 2, 2023) 
(describing issues with TennCare's eligibility system, including having 
to repeatedly submit the same information, not properly being found 
eligible, and requiring advocacy intervention); see generally Nat'l 
Health Law Program, A.M.C. v. Smith, Middle District of Tennessee, 
https://healthlaw.org/resource/a-m-c-v-smith-middle-district-of-
tennessee/ (case involving issues with notices, the eligibility system, 
disability discrimination, and access to fair hearings to address 
errors).
---------------------------------------------------------------------------

Conclusion

We ask that this committee recognize that efforts to address harm from 
ADS in health care must include approaches to address those harms in 
Medicaid and other government-funded health care programs. And that 
those efforts recognize not only the unique rights of enrollees, but 
the extent of harm as well. Our ADS Principles set forth our asks 
regarding algorithmic fairness and we welcome questions and 
conversations to further provide information and guidance on policy 
solutions that will provide meaningful protections to current harms.

For further information or questions about this testimony, please 
contact Elizabeth Edwards at the National Health Law Program by email 
at edwards@healthlaw.org.

                                 ______
                                 
                         National Nurses United
February 6, 2024

Senate Committee on Finance
219 Dirksen Senate Office Building
Washington, DC 20510

Dear Chairman Wyden and Ranking Member Crapo:

In light of the full committee hearing today titled ``Artificial 
Intelligence and Health Care: Promise and Pitfalls,'' I write to you on 
behalf of National Nurses United, the nation's largest union and 
professional association of registered nurses (RNs) to discuss the ways 
that our nearly 225,000 members are already experiencing the impacts of 
artificial intelligence (AI) and data-driven technologies at the 
hospital bedside.

The decisions to implement AI technologies are often made without the 
knowledge of either nurses or patients, and are putting patients and 
the nurses who care for them at risk. AI technology is being used to 
replace educated registered nurses exercising independent judgment with 
lower-cost staff following algorithmic instructions. However, patients 
are unique and health care is made up of non-routine situations that 
require human touch, care, and input. AI poses significant risks to 
patient care and to nursing practice, and all legislative and 
regulatory steps taken must utilize the precautionary principle--an 
idea at the center of public health analysis--in order to protect 
patients from harm.

NNU urges the Federal Government to pursue a regulatory framework that 
safeguards the clinical judgment of nurses and other health care 
workers from being undermined by AI and other data-driven technologies. 
NNU recommends that Congress take the following actions:

All statutes and regulations must be grounded in the precautionary 
principle. NNU urges Congress to develop regulations that require 
technology developers and health care providers to prove that AI and 
other data-driven digital technologies are safe, effective, and 
therapeutic for both a specific patient population and the health care 
workforce engaging with these technologies before they are deployed in 
real-world care settings. This goes beyond racial, gender, and age-
based bias. As each patient has unique traits, needs, and values, no AI 
can be sufficiently fine-tuned to predict the appropriate diagnostic, 
treatment, and prognostic for an individual patient. Liability for any 
patient harm associated with failures or inaccuracies of automated 
systems must be placed on both AI developers and health care employers 
and other end users. Patients must provide informed consent for the use 
of AI in their treatment, including notification of any clinical 
decision support software being used.

Privacy is paramount in health care--Congress must prohibit the 
collection and use of patient data without informed consent, even in 
so-called deidentified form. There are often sufficient data points to 
reidentify so-called deidentified patient information. Currently, 
health care AI corporations institute gag clauses on users' public 
discussions of any issues or problems with their products or cloak the 
workings of their products in claims of proprietary information. Such 
gag clauses must be prohibited by law. Additionally, health care AI 
corporations and the health care employers that use their products 
regularly claim that clinicians' right to override software 
recommendations makes them liable for any patient harm while limiting 
their ability to fully understand and determine how they are used. 
Thus, clinicians must have the legal right to override AI. For nurses, 
this means the right to determine nurse staffing and patient care based 
on our professional judgment.

Patients' informed consent and the right to clinician override are not 
sufficient protections, however. Nurses must have the legal right to 
bargain over the employer's decision to implement AI and over the 
deployment and effects of implementation of AI in our workplace. In 
addition to statutes and regulations codifying nurses' and patients' 
rights directly, Congress needs to strengthen workers' rights to 
organize, collectively bargain, and engage in collective action 
overall. Health care workers should not be displaced or deskilled as 
this will inevitably come at the expense of both patients and workers. 
At the regulatory level, the Centers for Medicare and Medicaid Services 
must require health care employers to bargain over any implementation 
of AI with labor unions representing workers as a condition of 
participation.

Congress must protect workers from AI surveillance and data mining. 
Congress must prohibit monitoring or data mining of worker-owned 
devices. Constant surveillance can violate an employee's personal 
privacy and personal time. It can also allow management to monitor 
union activity, such as conversations with union representatives or 
organizing discussions, which chills union activity and the ability of 
workers to push back against dangerous management practices. The 
federal government must require that employers make clear the 
capabilities of this technology and provide an explanation of how it 
can be used to track and monitor nurses. Additionally, Congress must 
prohibit the monitoring of worker location, data, or activities during 
off time in devices used or provided by the employer. Employers should 
be restricted from collecting biometric data or data related to 
workers' mental or emotional states. Finally, employers should be 
prohibited from disciplining an employee based on data gathered through 
AI surveillance or data mining, and AI developers and employers should 
also be prohibited from selling worker data to third parties.

National Nurses United looks forward to future conversations on this 
topic, and to working with this committee to ensure that the federal 
government develops effective regulations that will protect nurses and 
patients from the harm that can be caused by artificial intelligence 
and data-driven technologies in health care.

Sincerely,

Amirah Sequeira
National Government Relations Director

                                   [all]