Medicare Approves Additional Payment for an Inpatient Radiology AI Tool

Medicare Approves Additional Payment for an Inpatient Radiology AI Tool

Medicare has approved a new technology add-on payment (NTAP) for Aidoc’s CARE Multi-Triage CT Body AI system, marking an important step toward mainstream reimbursement for diagnostic AI in radiology. Beginning October 1, 2026, eligible hospitals can receive up to $137.53 per qualifying inpatient case in fiscal 2027 when the technology is used. The AI analyzes CT scans and flags potentially urgent conditions such as appendicitis and bowel obstruction.

The decision is significant because reimbursement has been one of the biggest barriers to widespread adoption of medical AI. CMS approved 22 new products through its alternative pathway, alongside eight products receiving payment through the traditional pathway. Altogether, the agency expects the new technology payments to add approximately $779 million in fiscal 2027 for inpatient cases involving emerging medical technologies.

For Aidoc's system specifically, the approved payment represents about 65% of the average cost of the technology, according to an American College of Radiology summary cited by Radiology Business. The system previously received FDA breakthrough-device designation in 2025 and 510(k) clearance in January 2026. The reimbursement is intended to help hospitals offset the cost of adopting the technology while making it easier for Medicare patients to benefit from AI-assisted diagnostic triage.

The broader significance is that Medicare is beginning to create an economic pathway for clinically useful AI, rather than leaving hospitals to absorb the entire cost. This could encourage more vendors to invest in clinical validation and could accelerate adoption of AI that demonstrably improves the speed of diagnosis. At the same time, reimbursement is unlikely to extend automatically to every radiology AI tool: many applications perform tasks already considered part of a radiologist's existing service and may need to demonstrate additional clinical or economic value to justify separate payment.

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