US Health Insurer: Hospitals' Use of AI in Claims Adds $942 Million to Costs

A Blue Cross Blue Shield Association (BCBSA) analysis shows that hospitals using AI tools to file insurance claims added $942 million to US medical costs over two years. The analysis found a sharp rise in patients recorded with complex conditions, a clear gap between medical coding and actual treatment, and no evidence that care services changed.

The New York Times says the analysis signals again that AI is driving up US healthcare spending. Hospitals and insurers have long fought over treatments and payments, but the conflict has worsened as both doctors and patients use AI.

Dr. Shiv Rao, founder of AI startup Abridge, admitted that if poorly developed, AI could lead to a bad scenario where bots fight each other. But he also said AI could ease conflicts and lower overall costs. BCBSA senior vice president Luke Chalker said this is not a battle, but a one-sided situation where insurers are losing.