AI will transform medicine, but maybe not for everyone

The congressional debate over funding for AI-powered medical tools has shifted from whether the technology works to who will actually benefit from it.

In her testimony to House members at the recent hearing, “Health at Your Fingertips: Harnessing the Power of Digital Health Data,” Dr. Jackie Gerhart, CEO of Epic, spoke with enthusiasm when describing artificial intelligence (AI) in her medical practice, quoting a colleague who told her “AI is the best resident I’ve ever had.”

Epic has implemented ambient AI technology that automatically documents doctor-patient conversations and has achieved an 86% reduction in physician documentation time at one health system and cut physician turnover nearly in half at another.

But the promise of AI comes with a catch; Republicans and Democrats remain deeply divided over how to ensure Americans can actually access it.

Extraordinary potential for a troubling reality

Andrew Zengilowski, who leads CoachCare’s remote patient monitoring platform, projected that if all six million Americans diagnosed with critical heart failure had access to remote monitoring, healthcare savings would reach $24 billion annually. “I can monitor a patient for 50 years for the cost of an ambulance ride and a few days in the hospital,” he testified.

The numbers reflect a concerning pattern. The World Economic Forum reports that global health spending reached $9.8 trillion in 2021, accounting for 10.3% of the world’s GDP, yet life expectancy “has stagnated in many countries, including the United States.” Health tech companies say they have the answer.

Dr. Kristen Holmes from WHOOP described how wearable devices can now identify potential biomarkers for preterm birth and detect COVID-19 infections two days before symptoms appear. The global digital health market size was estimated at $288.55 billion in 2024 and is projected to reach $946.04 billion by 2030, driven by improving technology and wider use.

Tech that can benefit everyone, available to some

The reality is more complicated. Only one-third of Americans use health monitoring devices, with seniors six times less likely than younger groups to adopt this technology. The problem starts with how we pay for healthcare.

Medicare has made significant strides in covering remote patient monitoring. Using average Medicare reimbursement for 2025, providers can earn about $91 per month per Medicare beneficiary for basic remote monitoring services, with potential earnings up to $167 per month for more intensive monitoring. The use of remote patient monitoring in Medicare increased dramatically from 2019 to 2022, though federal oversight agencies have raised concerns about appropriate billing practices.

But major problems persist, especially for rural providers; they typically receive lower payment rates for the same services, making it harder to invest in new technologies. By 2025, remote patient monitoring services and tools are expected to reach 71 million U.S. patients, but geographic and economic disparities in access persist.

Ranking Member Lloyd Doggett warned about “the estimated 16 million Americans that are about to lose their access to health care” under Republican healthcare proposals. Georgetown University’s Sabrina Corlette outlined potential impacts on Medicaid beneficiaries and warned that Medicare sequestration could trigger 4% annual payment reductions to providers over the next decade.

Privacy concerns with consumer-driven health apps

When discussion turned to fitness apps and consumer devices that fall outside medical privacy laws, Rep. Judy Chu raised concerns about period-tracking applications and potential law enforcement access to health data. 

“HIPAA only covers actors like health systems insurers and their contracted business associates, such as Epic,” Dr. Gerhart explained, leaving personal health data from consumer applications potentially vulnerable.

Following the money and finding common ground

Despite political turbulence, investors keep pouring money into digital health. Digital health startups proved surprisingly sturdy in 2024, with an encouraging 4% year-over-year increase in venture capital funding for digital health in 2024, ending years of decline. AI-driven innovation led the way, with $2.44 billion of funding directed toward the oncology sector and $1.94 billion toward mental health solutions. The funding shows investors believe in AI; of new health technology investment, 25% is already directed toward AI applications.

The funding momentum isn’t based entirely on hypothetical bipartisanship. Both Democrats and Republicans have expressed frustration with outdated payment systems, and several lawmakers spoke favorably at the hearing about bringing back the Medicare Coverage of Innovative Technology pathway, a program from Trump’s first term designed to speed approval for breakthrough medical devices.

“We don’t need a moonshot. We need policy that supports what we already know works,” Zengilowski said. The irony isn’t lost on industry observers. While entrepreneurs are building tools that could prevent heart attacks and detect cancer early, lawmakers are still arguing over basic healthcare access. The digital health revolution is coming whether Congress acts or not; the question is whether we allow it to benefit everyone or only those who can afford to join it.