Insurers assert that AI is already driving up healthcare expenses

Insurers assert that AI is already driving up healthcare expenses

According to an evaluation by the Blue Cross Blue Shield Association, hospitals’ employment of artificial intelligence tools while filing insurance claims resulted in an extra $942 million in healthcare expenditures over a span of two years.

The BCBSA evaluation identified “a significant rise in the documentation of patients with complex conditions,” but contended that there is a “distinct inconsistency between [medical] coding and treatment,” as there’s “no proof of a corresponding alteration in care provided.”

The New York Times highlighted the analysis as merely the latest evidence that AI is driving up healthcare costs. While disputes between hospitals and insurers regarding treatments and payments are longstanding, the NYT indicated that the application of AI on both fronts appears to exacerbate the situation.

Dr. Shiv Rao, the founder of AI startup Abridge, acknowledged that the application of AI could usher in “a terrible dystopian future that no one wishes to inhabit,” with “bots clashing against bots, agents contending with agents.” However, Rao mentioned that it could also alleviate tensions and reduce expenses.

Furthermore, the BCBSA’s senior vice president Luke Chalker refrained from labeling the scenario as a conflict, asserting, “It’s not a war. It’s a thoroughly one-sided massacre,” with insurers on the disadvantaged side.

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