Key facts
- Hospitals' use of AI in insurance claims has added $942 million to healthcare spending over two years, according to the BCBSA.
- The BCBSA analysis found a disconnect between medical coding and treatment, with no evidence of corresponding changes in care delivered.
- The New York Times reported that AI is contributing to increased healthcare costs.
Hospitals' adoption of artificial intelligence tools in submitting insurance claims has led to an estimated $942 million increase in healthcare spending over a two-year period, according to an analysis by the Blue Cross Blue Shield Association (BCBSA). The BCBSA's analysis indicated a significant rise in patients being documented with complex conditions, but highlighted a "clear disconnect between [medical] coding and treatment," as there is "no evidence of corresponding change in care delivered." The New York Times pointed to this analysis as further evidence that AI is contributing to escalating healthcare costs. While disputes between hospitals and insurers over treatments and payments are common, the Times noted that the increasing use of AI by both parties appears to be exacerbating the issue. Dr. Shiv Rao, founder of AI startup Abridge, acknowledged the potential for AI to lead to undesirable outcomes, stating it could result in "a horrible dystopic future nobody wants to live in," with "bots fighting bots, agents fighting agents." However, he also suggested that AI might eventually reduce tensions and cut costs. Luke Chalker, senior vice president at BCBSA, resisted characterizing the situation as a conflict, instead describing it as "a completely one-sided blood bath," with insurers bearing the brunt of the losses.