US SB1702

Adds prescription digital therapeutics as a covered benefit under Medicare Part B starting January 1, 2026, and under Medicaid

Defines prescription digital therapeutics as FDA-cleared or approved software-based products, devices, or internet applications used to prevent, manage, or treat medical conditions

Requires the Secretary of HHS to establish a payment methodology for manufacturers within 1 year and product-specific HCPCS billing codes within 2 years

Mandates annual manufacturer reporting of payment rates from private payors, distribution volumes, and user numbers, with civil penalties up to $10,000 per day for failures to report or misrepresentations

Payment methodology must consider actual list charges, weighted median payment rates across payors, and costs for ongoing use therapeutics