Health Tech Faces Scrutiny as CMS Demands AI Transparency

AI Under the Microscope

Federal healthcare regulators are taking a closer look at artificial intelligence systems used in medical decision-making, particularly those embedded in Medicare and Medicaid operations. The Centers for Medicare and Medicaid Services (CMS) and the Advanced Research Projects Agency for Health (ARPA-H) have issued a sweeping request for information (RFI) aimed at companies that provide or develop predictive algorithms and risk-scoring tools. The agencies are asking for detailed data about these systems—how they’re built, how they’re tested, and whether they contribute to biased care or poor outcomes, especially in underserved populations. The move suggests a broader regulatory effort to ensure that AI doesn’t exacerbate existing healthcare disparities.

Pushing for Accountability in AI

The request marks one of the most forceful federal efforts yet to bring transparency to health AI technologies. Regulators want to understand not just what algorithms are being used by government contractors, but also how they are influencing real-world healthcare decisions—such as hospital discharges, admission reviews, and care management plans. Officials emphasize the need for vendors to clarify how these tools are validated and how they account for racial, social, or economic inequities. The RFI sends a clear message to the health tech industry: future partnerships with federal programs will require a higher bar of ethical oversight, transparency, and data integrity.