Hospitals’ use of artificial intelligence tools when submitting insurance claims generated an additional $942 million in 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 documented patients with complex conditions,” but argued that there is a “clear disconnect between [medical] coding and treatment,” as there is “no evidence of a corresponding change in the care provided.” The New York Times pointed to the analysis as the latest sign that AI is contributing to rising healthcare costs. While battles between hospitals and insurers over treatment and payments are nothing new, the NYT said the use of AI on both sides appears to be making things worse. Dr. Shiv Rao, founder of AI startup Abridge, acknowledged that the use of AI could lead to “a dystopian future.” horrible thing that no one wants to live in,” with “bots fighting robots, agents fighting agents.” But Rao said it could also reduce tensions and reduce costs. And BCBSA senior vice president Luke Chalker resisted characterizing the situation as a battle, saying: “It’s not a war. It is a completely one-sided bloodbath,” with insurers on the losing side.
