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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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AI tools are driving up health insurance costs by nearly $1 billion, Blue Cross study finds - Tech Startups
Artificial intelligence is helping doctors find more information in patient records, automate notes, and document care faster. But the benefits are increasingly coming with costs that few saw coming. The AI boom has already been blamed for pushing up electricity […] The post AI tools are driving up health insurance costs by nearly $1 billion, Blue Cross study finds first appeared on Tech Startups.
Coverage Details
Total News Sources18
Leaning Left4Leaning Right2Center4Last UpdatedBias Distribution40% Left, 40% Center
Bias Distribution
- 40% of the sources lean Left, 40% of the sources are Center
40% Center
L 40%
C 40%
R 20%
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