Hospital AI use is causing medical bills to soar, with Blue Cross estimating $1 billion in extra insurance costs
- Insurers paid out $1bn extra because of AI assistance in hospitals, report claims
- AI is scanning through swathes of current and old data to find extra ailments
- Insurers are using AI to question whether those diagnoses are relevant
The Blue Cross Blue Shield Association (BCBSA) has revealed that insurers paid out nearly $1 billion more than usual from AI-assisted hospital documentation and other AI work in 2024-2025, compared with the year before.
The organization, which represents 31 independent Blue Cross Blue Shield insurers (and over 100 million citizens), found that using AI to scan medical records and transcribe patient meetings could actually be causing costs to rise, and even be passed on to patients via higher premiums.
But the cost isn't coming from the extra compute – that's a whole other issue. Instead, it's AI's ability to scan through huge amounts of data that could be revealing secondary ailments and...
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