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Home » Insurers claim AI is already increasing medical costs
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Insurers claim AI is already increasing medical costs

Editor-In-ChiefBy Editor-In-ChiefSeptember 26, 2026No Comments2 Mins Read
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An analysis by the Blue Cross Blue Shield Association found that hospitals’ use of artificial intelligence tools to submit insurance claims increased health care spending by an additional $942 million over two years.

BCBSA’s analysis found a “surge in the number of patients documented as having complex symptoms,” but argued there was a “clear disconnect between (medical) coding and treatment” with “no evidence of a corresponding change in the care provided.”

The New York Times noted that this analysis is just the latest sign that AI is contributing to rising health care costs. While conflicts between hospitals and insurance companies over treatment and payment are nothing new, the NYT said that both sides’ use of AI appears to be exacerbating the situation.

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”, where “bots fight bots, agents fight against agents”. But Rao said it could ease tensions and reduce costs.

BCBSA senior vice president Luke Chalker also resisted labeling the situation as a battle, insisting that “this is not a war. It’s a completely one-sided bloodbath,” and that insurance companies are on the losing side.



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