Healthcare Headlines from the Hill: September Edition

Stay ahead of the latest regulatory shifts and healthcare breaking news with Headlines from the Hill.

In this month’s edition you will find:

• CMS Announces IRF Review Choice Demonstration Expansion.
• Artificial Intelligence (AI) bill to require human involvement in claims denials process.
• Rural healthcare workforce: Refundable federal tax credit of up to $10,000.
  

CMS Announces IRF Review Choice Demonstration Expansion.

On September 25, CMS announced the expansion of the Inpatient Rehabilitation Facility (IRF) Review Choice Demonstration (RCD) to all IRFs billing under Medicare Administrative Contractor (MAC) Jurisdiction J, effective January 1, 2027.

Hospital and health system leaders are encouraged to verify their IRF MAC billing processes to determine if this expansion affects their facilities. Eligible IRF providers must select between 100% pre-claim review or 100% postpayment review during the upcoming selection window:

• Selection Period Start Date: November 13, 2026
• Selection Period End Date: December 14, 2026

In collaboration with American Medical Rehabilitation Providers Association (AMRPA), Lifepoint will be reviewing the update and will share updates as needed.

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Artificial Intelligence (AI) bill to require human involvement in claims denials process.

“The Doctor’s Not AI” Act would allow insurers to use artificial intelligence (AI) to process claims but would require that a licensed healthcare provider be involved in the process, particularly for care denials based on medical necessity. The provider would conduct their own independent evaluation of the individual’s medical circumstances and would not treat any output of an AI system as presumptively valid. 

A provision is included in the bill to ensure parity in coverage determinations for substance use disorder and other mental health conditions.

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Rural healthcare workforce: Refundable federal tax credit of up to $10,000.

U.S. Reps. Pat Harrigan (R-NC) and Don Davis (D-NC) introduced bipartisan legislation aimed at attracting more healthcare professionals to rural communities. The Resources for Essential Access to Community Health (REACH) Act would provide a refundable federal tax credit of up to $10,000 for eligible healthcare professionals who work at least 900 hours per year in a rural area.

Eligible providers would include primary care physicians, including nurses, mental health professionals, OB-GYNs and medical residents. The credit would begin to phase out for individuals earning more than $170,000. The tax credit would take effect for taxable years beginning after Dec. 31, 2026, and would remain available for qualifying rural employment through 2033. Lifepoint supports the bill that

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