Insurers Say AI Has Already Added $942 Million to Healthcare Costs

Summary

A Blue Cross Blue Shield Association analysis says hospitals’ use of artificial intelligence tools while submitting insurance claims was associated with an additional $942 million in healthcare spending over two years. The analysis found a sharp increase in patients documented as having complex conditions, but said there was no corresponding change in the care delivered. The findings have been cited as evidence that AI may be contributing to rising healthcare costs. The New York Times reported that AI use by both hospitals and insurers could intensify their longstanding disputes over treatment and payment. Abridge founder Shiv Rao warned that this could lead to automated systems fighting one another, while also saying AI could ultimately reduce tensions and costs. BCBSA executive Luke Chalker said insurers are currently losing badly in the resulting conflict.