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US insurers and hospitals turn to new AI for age-old battle over charges vs payments

Hospitals use AI to boost payments while insurers deploy AI to deny claims, with $1.4 billion spent on healthcare AI in 2025, industry experts say.

  • March 12, 2026 — U.S. hospitals and insurers escalate AI use in billing, with Razia Hashmi noting 'when those tools operate independently, they can unintentionally lead to friction'.
  • Healthcare AI spending data show rapid adoption among hospital systems, with $1.4 billion spent in 2025 and HCA Healthcare projecting about $400 million in 2026 cost savings.
  • Blue Cross Blue Shield's analysis highlights billions at stake from AI‑enabled coding, linking $663 million inpatient and at least $1.67 billion outpatient spending, while McKinsey and UnitedHealth Group project nearly $1 billion savings.
  • Centene said hospitals' revenue software use raised concerns, while Providence stated, 'AI tools are helping to accurately represent medical services rendered.'
  • Morgan Stanley projects multibillion-scale long-term savings from AI adoption, estimating up to $900 billion in hospital care savings by 2050 as U.S. healthcare spending hits about 18% of GDP, while Humana recently estimated more than $100 million in savings over a few years.
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ReutersReuters
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US insurers and hospitals turn to new AI for age-old battle over charges vs payments

Artificial intelligence is being deployed on both sides of the tug-of-war between U.S. healthcare systems that want to be paid more for ​medical procedures and insurers who want proof the services were necessary, and experts are having a hard time predicting a winner.

·United Kingdom
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Reuters broke the news in United Kingdom on Thursday, March 12, 2026.
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