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AI tools generated nearly $1 billion in extra costs, Blue Cross insurers say
The insurer group said hospitals used AI-powered coding to bill for more complex care, adding $942 million in costs over two years.
- On Thursday, a Blue Cross Blue Shield Association study reported that hospital AI tools drove healthcare spending up by nearly $1 billion over two years. The group said the findings "raises concerns" that AI contributes to higher costs.
- Hospitals increasingly use AI to document secondary conditions, leading to claims for more complex illnesses in 2024 and 2025. The association noted no evidence exists that patients received different treatment despite higher billing codes.
- For major bowel surgeries, secondary conditions increased 55% and 33% respectively, the survey found. By describing patients as having more complex conditions, hospitals were paid an average of nearly $12,000 more per case.
- CMS Administrator Dr. Mehmet Oz stated at an industry summit Wednesday that AI is inflationary because it will "turbocharge the ability of the current billing systems to work more effectively." He warned the technology could worsen costs before improving them.
- Benefit consultants warn that unchecked AI usage could drive costs up by 11% next year unless employers reduce benefits. The report reflects a broader industry conflict, with insurers and hospitals blaming each other for spiraling expenses.
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25 Articles
AI tools in the U.S. would have provided $1 billion in additional costs, a study calculates. However, patients would not benefit from this.
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Coverage Details
Total News Sources25
Leaning Left5Leaning Right2Center7Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 36%
C 50%
14%
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