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Insurers say AI is already increasing healthcare costs
Business

Insurers say AI is already increasing healthcare costs

By adminvoxa
September 27, 2026 1 Min Read
Comments Off on Insurers say AI is already increasing healthcare costs

Hospitals’ use of artificial intelligence tools when submitting insurance claims resulted in $942 million in additional healthcare spending over a two-year period, according to an analysis by the Blue Cross Blue Shield Association.

The BCBSA analysis found “a sharp increase in the number of patients documented as having complex illnesses,” but argued that there is a “clear gap between (medical) coding and treatment,” as there is “no evidence of a corresponding change in care provided.”

The New York Times noted that this analysis is just the latest sign that AI is contributing to rising health care costs. Although battles between hospitals and insurers over treatment and payments are nothing new, the New York Times believes that the use of AI on both sides appears to be making the situation worse.

Dr Shiv Rao, founder of AI startup Abridge, acknowledged that the use of AI could lead to “a horrible dystopian future that no one wants to live in”, with “robots fighting robots, agents fighting agents”. But Rao said it could also reduce tensions and costs.

And BCBSA Senior Vice President Luke Chalker resisted calling the situation a battle, saying, “It’s not a war. “It’s a completely one-sided bloodbath,” with insurers on the losing side.

Gn bussni

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