Healthcare AI Roundup
It has been a busy time in the world of artificial intelligence (AI) and healthcare. Here is a quick roundup to get you up to speed. While there has been activity by both Congress and the White House, a clear roadmap of where the federal government is headed still seems elusive.
Administration Seeks to Address AI Cybersecurity Risks with Executive Order
On June 2, 2026, President Trump issued Executive Order 14409, Promoting Advanced Artificial Intelligence Innovation and Security. The order focuses on strengthening government cybersecurity, establishing a voluntary framework for AI developers to engage with the federal government before deployment, and directing resources to prevent the criminal misuse of AI.
The order does not impose new mandates on the private sector, but it directs agencies to establish a voluntary framework for AI developers to engage with the government to assess the security risks of new frontier models. AI frontier models are AI systems at the absolute cutting edge of capability. They outperform older models and demonstrate "emergent" skills such as complex logic, multi-step planning, and nuanced coding. These models are thought to pose higher cybersecurity risks. Under this voluntary framework, the government will assess the cyber capabilities of frontier AI models to determine whether they constitute “covered frontier models.” Developers will provide government agencies with pre-release access to help ensure the security and cybersecurity of these models. The voluntary framework for pre-release government engagement is due to be finalized by August 1, 2026. The order does not authorize the creation of any mandatory licensing or preclearance regime for the development of new AI models.
The Order also directs the Attorney General to prioritize enforcement under federal criminal statutes against anyone who “employ[s] AI agents to unlawfully access data or information that is subsequently used for a criminal or unlawful purpose.” This enhanced enforcement may increase a company’s assessment of the risks of its technology.
This new executive order reflects a pivot from the administration, which seems more willing to regulate the AI industry, where previously it had backed away from regulations, not wanting to stifle innovation.
In other AI news from the administration, the Centers for Medicare and Medicaid Services (CMS) established a new technology office, Office of Health Technology and Products (OHTP), to accelerate the modernization of its core healthcare programs. Collaborating with the CMS Chief Information Officer, OHTP will lead enterprise strategy and implementation of AI across CMS digital products and platforms, recruit top technical talent, develop open-source technologies, and enforce API-based data interoperability standards.
Congress Advances Towards First Effort at Broad Federal Framework for AI Policy
On June 4, Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) introduced the Great American Artificial Intelligence Act (GAAIA) of 2026, a 269-page discussion draft that would establish a broad federal framework for AI policy, with a particular focus on frontier AI governance, federal preemption, AI-related fraud, workforce readiness, cybersecurity, research infrastructure, and international cooperation. It is the first comprehensive framework for AI governance proposed by Congress. It focuses on “large frontier developers,” defined as companies with over $500 million in annual revenue. It seeks a three-year pause on state-level regulation to prevent a patchwork of state laws. The pause on state-level regulations is consistent with a previous presidential executive order aimed at preventing individual states from enacting their own "excessive" AI regulations. It is still in draft form and has not yet been introduced. In its current form, it is designed to solicit feedback. Accompanying the draft bill is a section-by-section summary and FAQs.
While there is momentum for federal AI governance, it remains unclear whether this legislation could pass this year. In a recent interview with Politico, Senate Minority Leader Chuck Schumer said that while he wants Congress to pass AI legislation this year, he is doubtful. “In Congress, it is hard,” he said.
Other congressional AI activity includes a letter to Federal Bureau of Investigation (FBI) Director Kash Patel from a group of House Republicans. The letter approves of the FBI’s recent actions to address growing threats targeting the healthcare sector and highlights the issue's pervasiveness. The letter calls for continued collaboration between the FBI and health care stakeholders.
CPT Releases Updated Coding Framework for AI-enabled CPT Codes
On June 8, the CPT Editorial Panel (Panel) of the American Medical Association (AMA) released its updated CPT Appendix S. The appendix, first introduced in 2021, provides guidance on developing appropriate terminology for CPT codes that include an AI-enabled medical service. It includes three classifications for AI software:
Assistive: The output from assistive software requires interpretation and reporting by a physician or other professional.
Augmentative: The software output(s) represent a quantitative or categorical parameter that is qualitatively different from the input. The output must be more than a simple summation of quantitative data inputs.
Autonomous. The output(s) automatically (without concurrent physician or other professional involvement) derive parameters and independently generate clinically meaningful interpretations.
With the finalization of Appendix S, it is expected that the Panel will return to its previous discussion on developing a new category of CPT codes that include an AI-enabled medical service but do not include any professional work (e.g., technical-only codes).
Joint Commission Launches AI Certification Program
Earlier this month, the Joint Commission announced the launch of a new AI certification program, The Responsible Use of AI in Healthcare, which it describes as a blueprint for responsible AI adoption in healthcare. The voluntary program does not certify any specific technology but provides guidance on governance, safeguards, monitoring processes, and education. The program uses a set of comprehensive governance playbooks recently released by the Coalition for Health AI as its framework.
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For more information and questions, please contact:
Sheila Madhani
Madhani Healthcare Consulting
Email: smadhani@madhani-health.com
Tel: (202) 679-2977