Last progress May 8, 2025 (7 months ago)
Introduced on May 8, 2025 by Shelley Moore Capito
Read twice and referred to the Committee on Finance.
This bill would let Medicare and Medicaid cover “prescription digital therapeutics” — FDA‑cleared or approved health apps and software that help prevent, manage, or treat medical conditions. These tools would be treated like other covered medical services. Medicare coverage would start January 1, 2026, with a payment system set by the federal health agency that can use one-time or ongoing payments and considers list prices and what private insurers pay . Manufacturers would have to report what private insurers pay, how much they distribute, and how many people use the product; failing to report could lead to fines up to $10,000 per day, and reported prices must reflect discounts and rebates . Medicaid would also add these products to what it can cover, using the same definition of prescription digital therapeutics . The agency must also create product‑specific billing codes to make payment and tracking easier . In short, the bill aims to make doctor‑prescribed health apps more affordable and accessible for people on Medicare and Medicaid .
| Who is affected | What changes | When |
|---|---|---|
| People on Medicare | Medicare covers doctor‑prescribed digital health tools; agency sets how to pay for them | Coverage starts Jan 1, 2026; payment rules within 1 year; billing codes within 2 years |
| People on Medicaid | Medicaid adds these digital therapeutics to covered services | Timing follows addition to Medicaid’s covered items list |
| Manufacturers of these tools | Must report private‑insurer payment rates, volumes, and users; face fines for not reporting; prices must include discounts | Reporting starts Jan 1, 2026; penalties up to $10,000/day for failures |