Hospital AI Use Is Causing Medical Bills to Soar, with Blue Cross Estimating $1 Billion in Extra Insurance Costs
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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The Daily Caller
Bizpac ReviewHospitals Used AI To Inflate Medical Bills By Nearly $1,000,000,000, Report Finds
Use of AI tools hiked healthcare spending by nearly $1 billion over a two-year period, per a Blue Cross Blue Shield Association analysis.
‘Raises concerns’: Hospitals use A.I. to inflate medical bills by nearly $1 BILLION! * WorldNetDaily * by Ireland Owens, Daily Caller News Foundation
The disconnect between diagnoses and treatment suggests that A.I. is identifying more billable conditions, not sicker patients'
Hospitals used AI to inflate medical bills by nearly $1,000,000,000, report finds - The Daily Bo Snerdley
Hospitals’ use of artificial intelligence tools hiked healthcare spending by nearly $1 billion over a two-year period, per a Blue Cross Blue Shield Association analysis released Thursday. BCBSA’s new study shows that a major rise in patients being documented as having complex conditions led to $942 million in additional medical care costs for Blue Cross and Blue Shield (BCBS) companies between 2023 and 2025. The study “raises concerns” that the…
Blue Cross: Hospital AI Coding Added $942M
Artificial intelligence tools used to document and code hospital stays may be contributing to hundreds of millions of dollars in added health care costs, according to a new Blue Cross Blue Shield Association analysis that estimates changes in inpatient coding added $942 million in costs to Blue plans over two years. The national association said […]
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