2026-10-11 16:38 UTC

CMS's WISeR pilot routes Medicare prior-authorization decisions through AI vendors paid 25% of averted expenditures per denied service, and Ars Technica — citing EFF-obtained federal records — documents rushed rollouts, a 53% vendor denial rate, months-long delays, and a GAO improper-procedure finding while the program expands through 2031; congressional, GAO, or litigation action halting or restructuring the program resolves whether this becomes the governing precedent for government AI decision systems.

state: corroboratedheat: mediumuncertainty: mediumconvergesscott: mediumai-governance government-ai-deployment healthcare-ai medicareCMSChris KlompElectronic Frontier FoundationSuzan DelBenePatty MurrayInnovaccerVirtixZyter
Surfaced 2026-09-26T22:58:34Z — Per the Ars Technica report: 'the Electronic Frontier Foundation released a tranche of federal documents ... about the program, called WISeR — Third consecutive recirculation: the reddit crosspost (200→261 pts, 28 comments) adds only partisan snark while measured momentum cools (24.4→8.8 pts/h, 1 comment/h) and HN stays dead (14/0) — the magnitude-valve's 97.4th-percentile reading still decomposes to one cooling thread plus two cold residuals, so the periphery is not expanding. Heat holds medium solely as a delivery call on the live resolution tail (House defund amendment, physician litigation, Klomp confirmation); if that tail stays quiet through the next look with continued cooling, drop to low.

What is this?

WISeR (Wasteful and Inappropriate Service Reduction) is a CMS pilot launched January 2026 that inserts AI-assisted prior authorization, run by private vendors, into traditional Medicare across six states, running through December 2031; vendors are paid a share of averted expenditures — reported by KFF at 10–20% — a structure critics say directly rewards denials, and Washington records show vendor Virtix denied 53% of its 6,000+ decisions in the first three months. Roughly 1,000 pages of internal CMS records released September 8, 2026 by the EFF through FOIA litigation show a rushed launch over a vendor's own pre-launch warning (Innovaccer said the software was untested and would auto-affirm requests until finished), one request unanswered for 83 days against a 72-hour standard, and vendor contracts EFF says lacked independent safety-audit requirements. The political fight is live: the Senate voted 46–50 on July 16 to preserve the pilot over Democratic objections, while a House Appropriations amendment seeks to defund it and Virtix is under a CMS corrective action plan with biweekly monitoring. Caveats: the supplied snippets put vendor share at 10–20%, not the 25% in the case hypothesis, and do not corroborate the claimed GAO improper-procedure finding or establish Chris Klomp's role — treat those as unconfirmed.

Why it matters to Scott

The EFF-released record — launch over Innovaccer's own pre-launch 'untested, will auto-affirm' warning, vendors paid per averted expenditure, Virtix's 53% denial rate, an 83-day decision against a 72-hour standard — independently arrives, with dated federal receipts, at exactly the failure sequence Scott's recommendation–authority separation, Challenger-Never-Arbiter (a challenger whose objection never became a gate), and Architecture-Not-Vibes pages predict for consequential AI decisions lacking hard authority underneath; his derivational-provenance practice prescribes precisely the dated derivation receipt this invites. Caveats from grounding: the 25% payment figure and GAO improper-procedure finding are unconfirmed, but the confirmed facts alone are citable governance-failure evidence for LeverageAI's positioning and a live precedent for government AI decision systems.
dev:concept.recommendation-authority-separationip:framework.challenger-never-arbiterip:framework.architecture-not-vibesip:framework.derivational-provenancework:concept.ai-consulting-practiceradar:concept.government-airadar:concept.reward-hackingradar:concept.human-in-the-loopradar:concept.agent-authorization
queries asked of Scott's wikis
  • AI reward design perverse incentives paid per denial
  • pre-deployment evals shipping untested models high-stakes systems
  • human-in-the-loop gatekeeping consequential automated decisions
  • government AI procurement algorithmic accountability transparency
  • healthcare AI prior authorization denials positions
  • agent autonomy limits black-box vendor decision systems

Measured heat

now 0 pts/hpeak 4 pts/hcomments 0/hpeers p15momentum: steady3 platformsage 384h
points/hour across evidence · reading as of 2026-10-12 02:59:37.977291+11:00 · deterministic, not a model opinion

How the heat travelled

09-25 19:34 (minted)⭐ origin echo-reconstructedPer the Ars Technica report: 'the Electronic Frontier Foundation released a tranche of federal documents ... about the program, called WISeR
Electronic Frontier Foundation on blog (echo) · attributed from hn.story.49846177 · published time unknown
—
09-25 15:45first on hacker news · published · lag ?Trump admin using AI to deny medical care for seniors in disastrous experiment
clumsysmurf
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09-25 23:16first on r/artificial · published · lag ?Trump admin using AI to deny medical care for seniors in disastrous experiment. Vendors rolling out AI have an “incentive to deny as many claims as possible.”
esporx
—
09-25 15:45amplified on hacker newshn.story.49846177
clumsysmurf
peak 14 · 0 comments · 6% of case engagement
09-25 23:16amplified on r/artificial 👑reddit.post.1wqaywn
esporx
peak 371 · 30 comments · 94% of case engagement
09-25 19:20our radar first saw it · lag ?discovery anchor: hn.story.49846177—
09-26 22:58reached heat=high · lag ? · via ledger——
pace: p82 vs 1032 stories at the 336h mark (now 384h old) — ahead of docs-first-agent-continuity-protocol (1.0x), behind agnes-30-flash-hybrid-release (1.0x)

Evidence (4) — ⭐ canonical anchor

sourceobjectauthorscorecomments
🟧 hnTrump admin using AI to deny medical care for seniors in disastrous experiment
Retrieved article excerpt

Open article · Retrieved 2026-09-25T19:24:50.294418+00:00

“A disgrace”

# Trump admin using AI to deny medical care for seniors in disastrous experiment

Vendors rolling out AI have an “incentive to deny as many claims as possible.”

[Beth Mole](https://arstechnica.com/author/beth/)
–

Sep 25, 2026 7:00 am
| [158](https://arstechnica.com/health/2026/09/trump-admin-using-ai-to-deny-medical-care-for-seniors-in-disastrous-experiment/#comments "158 comments")

Chris Klomp, deputy administrator of the Centers for Medicare and Medicaid and US President Donald Trump's nominee to be deputy secretary of Health and Human Services (HHS), during a Senate Health, Education, Labor, and Pensions Committee confirmation hearing in Washington, DC, US, on Wednesday, Sept. 16, 2026.
Credit:
[Getty | Daniel Heuer](https://www.gettyimages.com/detail/news-photo/chris-klomp-deputy-administrator-of-the-centers-for-news-photo/2295026360?adppopup=true)

Chris Klomp, deputy administrator of the Centers for Medicare and Medicaid and US President Donald Trump's nominee to be deputy secretary of Health and Human Services (HHS), during a Senate Health, Education, Labor, and Pensions Committee confirmation hearing in Washington, DC, US, on Wednesday, Sept. 16, 2026.
Credit:
[Getty | Daniel Heuer](https://www.gettyimages.com/detail/news-photo/chris-klomp-deputy-administrator-of-the-centers-for-news-photo/2295026360?adppopup=true)

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In January, the Trump administration rolled out a pilot program that uses artificial intelligence to authorize or deny certain types of care for patients with Medicare—a federal healthcare program for seniors that previously hasn’t required doctors to get any such pre-approval, called prior authorization.

Not long after, media outlets began relaying the disastrous outcomes: technical difficulties, [long delays](https://www.marketwatch.com/story/a-new-medicare-program-that-uses-ai-for-prior-authorizations-is-hurting-patients-and-delaying-care-9e25b98b) in decisions and care, [puzzling denials](https://www.kjzz.org/the-show/2026-08-03/ai-powered-wiser-program-complicates-treatment-for-arizona-medicare-patients-doctor-says), [frustrated doctors](https://www.medscape.com/viewarticle/unsustainable-physicians-lawsuit-challenge-medicares-wiser-2026a1000ae8), and [patients suffering in pain](https://www.seattletimes.com/business/new-medicare-program-in-wa-leaves-patients-in-pain-awaiting-approvals/). Those reports were largely confirmed earlier this month when [the Electronic Frontier Foundation released a tranche of federal documents](https://www.eff.org/deeplinks/2026/09/new-records-reveal-problems-medicares-ai-prior-authorization-experiment) about the program, called WISeR, that the group obtained amid litigation. The documents included feedback from healthcare providers, including one who called the program “a disgrace to the human race” and reported seeing patients crying in pain as they waited for care.

Amid the worrying reports, lawmakers have been [trying to get answers](https://delbene.house.gov/uploadedfiles/final_wiser_letter_june_2026.pdf) and [shut the program](https://www.statnews.com/2026/05/20/democrats-force-vote-to-end-medicare-ai-prior-authorization-pilot/) down. Meanwhile, [the Government Accountability Office determined](https://www.gao.gov/products/b-337994) in May that Trump officials did not follow proper procedure in setting up the program, calling its legality into question. Still, it appears to be moving ahead unabated, with plans to expand in the years to come.

Last week, Rep. Suzan DelBene (D-Wash.) called a committee vote to try to get the Trump administration to release more documents about WISeR, but Republicans [voted the effort down](https://delbene.house.gov/news/documentsingle.aspx?DocumentID=4454).

“It’s clear why the administration is doing everything they can to conceal these documents,” DelBene said in a statement. “The more that Americans learn about WISeR, the more outraged they get at the Trump administration for jeopardizing their care and trying to privatize Medicare.”

## Technical fumbles

[WISeR](https://www.cms.gov/priorities/innovation/innovation-models/wiser), which stands for Wasteful and Inappropriate Service Reduction, aims to use AI and machine learning to ensure “appropriate Medicare payment” for select services while benefiting taxpayers “by decreasing fraud, waste and abuse.” It was rolled out in January in six states—New Jersey, Ohio, Oklahoma, Texas, Arizona, and Washington—and intends to run until the end of 2031.

So far, the program requires prior authorization for around a dozen medical services, including nerve stimulation, epidural steroid injections for pain, cervical fusions (permanently connecting bones in the neck), skin substitutes for wounds, and treatments for incontinence and impotence.

According to the documents released by the EFF, the program’s implementation was rushed, and the technology wasn’t ready. One vendor, Innovaccer, was so unprepared that it asked the government to delay the rollout, and when it didn’t, the vendor set up its program to automatically approve all requests temporarily.

“[A]uto-affirming is the only path available that avoids creating a backlog of unprocessed prior authorizations and claims while we finalize, validate, and deploy the full rules-based solution,” Innovaccer wrote, according to a letter it sent to government officials.

But others carried on. One vendor, Zyter, had data discrepancies for months because it apparently didn’t understand the difference between Medicare Part A, which covers inpatient/hospital care, and Part B, which covers outpatient services. Zyter’s CEO, Sundar Subramanian, told Ars Technica in a written statement that the company is now “fully functional across Medicare Part A and Part B claims.” The company is working closely with federal partners and the healthcare providers to “enhance the experience,” Subramanian said.

## More denials than approvals

Another vendor, Virtix, was found to be denying more prior authorization requests than it was approving. According to a weekly report on March 30, Virtix had reviewed 6,096 pre-authorization requests. It approved 2,863 of them, denying 3,233 (53 percent).

In addition to a questionable number of denials, decisions from the various contracted companies often took too long. WISeR is intended to provide authorization decisions within 72 hours, but many have taken weeks, some even months. The documents from EFF reveal at least one request was still pending after 83 days. In a survey, one healthcare provider said it “had a surgery pushed back almost two months due to zero communication.”

It was revealed in June that Virtix was put on a Corrective Action Plan (CAP) by the Centers for Medicare & Medicaid Services (CMS) for “[noncompliance](https://delbene.house.gov/news/documentsingle.aspx?DocumentID=4363)” with the 72-hour window. In a statement to Ars Technica, Virtix confirmed it was on a CAP but said it has since “reduced its average turnaround time for prior authorization to 1.18 days and prepayment review determinations to 1.17 days, well within the WISeR Model’s 3-day requirement.”

Virtix said the CAP ended on August 14.

It’s unclear if any other vendors have been put on a CAP. The CMS and the Department of Health and Human Services did not immediately respond to Ars Technica’s request for comment and a list of questions related to WISeR in time for publication.

In its comment to Ars, Virtix said that it “understand[s] that any delay in care is difficult for patients, and we do not take lightly the impact that the prior authorization process can have on people who are in pain and seeking relief.”

That said,” the company continued, “the WISeR program uses long-established [National Coverage Determinations] and [Local Coverage Determinations] set by CMS, not by Virtix Health, to evaluate the medical appropriateness of each requested procedure.”

Virtix encouraged providers to consider resubmitting authorization requests and ask for peer-to-peer discussion about denials.

## “A disgrace to the human race”

The suggestion to reach out for support is unlikely to assuage many providers who have experience with WISeR. From their perspective, technical snags, delays, and unexpected denials have led to real misery, and many providers have reported only radio silence from program vendors when they sought support.

The reality of WISeR’s implementation may best be captured by feedback from one healthcare provider in Ohio, which was working with Innovaccer, the vendor that initially auto-approved requests. In a survey response, the provider wrote (in all capital letters) about patients trying to get a minimally invasive surgery to treat compression fractures in their spines, saying:

> I HAVE HAD TO WATCH 3 PATIENTS CRY AT BEDSIDE FOR NOT HEARING BACK ON THEIR PRIOR AUTH FOR KYPHOPLASTY/VERTABRAL AUGMENTIATION PROCEDURE. THESE PATIENTS ARE IN DEEP PAIN. SO MANY OFFICES OF MY PHYSICIANS ARE NOT HEARING BACK FROM INNOVACCER… THERE IS NO WAY TO GET A HOLD OF A HUMAN TO TALK TO… WHAT A DISGRACE TO THE HUMAN RACE IN AMERICA. THIS IS THIRD WORLD.

Another Ohio provider expressed similar frustration with Innovaccer about delayed care and lack of communication, writing in a survey response that the experience has been “extremely disappointing”:

> A 3–4 day delay for necessary pain procedures is already difficult for vulnerable patients, but when providers cannot obtain answers for weeks, the situation becomes unacceptable… The lack of accessible support, accountability, and timely communication is deeply concerning. Programs affecting patient access to medically necessary procedures must have reliable provider support systems. Currently, that standard is not being met. Patients deserve better. Providers deserve answers. And systems designed to improve care should never result in preventable suffering.

Innovaccer did not respond to a request for comment from Ars Technica. In a statement to [Stat News](https://www.statnews.com/2026/09/15/medicare-ai-prior-authorization-pilot-problems-health-tech/), Innovaccer said its technology is now “fully live” and that the company has “worked closely with all of our partners to refine and improve the program since its launch and we will continue to do so with the spirit of putting patients first.”

## Financial incentive to deny care

In a Senate hearing last week, Sen. Patty Murray (D-Wash.) raised questions about WISeR to Chris Klomp, Trump’s nominee for Deputy Secretary of HHS, a position that requires Senate confirmation. In her questioning, Murray wasn’t focused on WISeR’s calamitous rollout; she was instead interested in how the program was designed to work.

“Do the contractors in the model—who are the private companies conducting the prior authorization assessments—make more money if they deny care? Just ‘yes’ or ‘no,’” Murray asked in her opening question.

“My understanding is no,” Klomp replied.

Klomp’s understanding is inaccurate, which is notable given that he has been working as the deputy administrator of CMS and has been directing Medicare since last year. CMS documents, included in the packet obtained by the EFF, clearly explain that the companies implementing WISeR are financially rewarded for denying requests for care. CMS’s planning documents describes it as a “novel payment approach where the model participants are compensated based on a share of averted expenditures.”

CMS documents written as a guide for WISeR participants explain further that for every denied request, CMS will determine what the regional benchmark cost for that care would have been and then pay the company 25 percent.

Murray further quoted the CMS Office of the Actuary, which explained bluntly in a memo that “model participants will
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🟧 echo.blog ⭐Per the Ars Technica report: 'the Electronic Frontier Foundation released a tranche of federal documents ... about the program, called WISeRElectronic Frontier Foundation——
🟠 redditTrump admin using AI to deny medical care for seniors in disastrous experiment. Vendors rolling out AI have an “incentive to deny as many claims as possible.”
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🟠 redditWe Investigated Medicare’s New AI Denial Scheme
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Interpretation history

Decision trace