Blue Cross Blue Shield says hospitals' AI claim tools added $942 million in spending over two years

An analysis by the Blue Cross Blue Shield Association says hospitals' use of AI tools when submitting insurance claims led to an additional $942 million in healthcare spending over two years. The association found "a sharp increase in patients being documented as having complex conditions." It argued there is a "clear disconnect between [medical] coding and treatment," with "no evidence of corresponding change in care delivered." TechCrunch reported that The New York Times cited the analysis as the latest sign that AI is adding to healthcare costs. Hospitals and insurers have long fought over treatments and payments, but the Times said both sides' use of AI seems to be making the conflict worse. Dr. Shiv Rao, founder of the clinical AI startup Abridge, acknowledged that AI could lead to "a horrible dystopic future nobody wants to live in," with "bots fighting bots, agents fighting agents." He also said it might ease tensions and cut costs. Luke Chalker, the association's senior vice president, rejected calling it a battle: "It's not a war. It's a completely one-sided blood bath," he said, placing insurers on the losing side. The figures come from the insurers' own analysis, and hospitals may dispute them. Still, the findings show that AI coding tools can affect what patients and employers pay for health coverage.