Updated
Updated · The New York Times · Sep 24
Blue Cross Says Hospital A.I. Added $1 Billion in Costs Over 2 Years
Updated
Updated · The New York Times · Sep 24

Blue Cross Says Hospital A.I. Added $1 Billion in Costs Over 2 Years

1 articles · Updated · The New York Times · Sep 24

Summary

  • $1 billion in added expenses over 2024 and 2025 came from hospitals using A.I. to make patient illnesses appear more complex in claims, the Blue Cross Blue Shield Association said Thursday.
  • Tens of thousands of claims carried extra conditions compared with 2023, yet the insurer group said it found no evidence those patients received different treatment.
  • Nearly $12,000 more per case was paid on average when hospitals added secondary diagnoses such as anemia or low sodium, according to the report.
  • The findings sharpen a broader billing fight in health care, where insurers and hospitals are already blaming each other before lawmakers for rising medical costs as A.I. spreads.

Insights

Will hospitals using AI to maximize medical billing end up driving your health insurance premiums even higher this year?
As hospitals and insurers deploy rival algorithms to fight over claims, who really wins this billion-dollar automated billing war?