Insurers report rising healthcare costs due to AI — TechCrunch

Hospitals’ use of artificial intelligence tools when submitting insurance claims may have led to an additional $942 million in healthcare costs over two years. This is stated in an analysis by the Blue Cross Blue Shield Association, TechCrunch reports.

Changes in medical coding

The association reported a sharp increase in the number of patients whose records listed complex medical conditions. At the same time, the authors of the analysis believe there is a significant discrepancy between medical coding and treatment. According to them, there is no evidence of corresponding changes in the medical care provided.

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AI on both sides of the insurance process

As The New York Times notes, the association’s analysis was another signal that artificial intelligence may contribute to rising costs in the healthcare system. The publication also noted that long-standing disputes between hospitals and insurers over treatment and payments may intensify because both sides use AI.

Dr. Shiv Rao, founder of the startup Abridge, acknowledged that this development could lead to a situation in which automated systems confront one another. At the same time, he suggested that AI could reduce tensions between the sides and cut costs. Luke Chalkar, senior vice president at BCBSA, said insurers had found themselves at a disadvantage.