Insurers Say AI Is Driving Up Healthcare Costs

Artificial intelligence is already pushing up healthcare costs, according to a new analysis from the Blue Cross Blue Shield Association.
The analysis found that hospitals’ use of AI tools when submitting insurance claims added $942 million in healthcare spending over a two-year period. It reported a sharp increase in patients being documented as having complex conditions.
But the group said there is a “clear disconnect” between medical coding and treatment. It found no evidence of a matching change in the care patients actually received.
The New York Times called the findings the latest sign that AI is contributing to rising healthcare costs. It said AI use by both hospitals and insurers is making their long-running battles over treatments and payments worse.
Dr. Shiv Rao, founder of AI startup Abridge, admitted the technology could lead to a “horrible dystopic future” of bots fighting bots. He said it might also cut costs and reduce tensions.
BCBSA senior vice president Luke Chalker rejected the idea of a fair fight. “It’s not a war. It’s a completely one-sided blood bath,” he said, with insurers on the losing side.
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