Insurers say AI is raising healthcare costs
The gist
Blue Cross insurers say AI tools added nearly $1 billion in costs over two years.
The dispute centers on whether AI finds sicker patients or more billable codes.
How it unfolded
- Sep 24, 2026Blue Cross Blue Shield Association released a study finding AI tools raised health spending for insurers by nearly $1 billion over two years, with $653 million from more frequent billing for secondary conditions and $942 million from more intense care compared to 2023.
- Sep 24, 2026CMS Administrator Dr. Mehmet Oz warned that AI will 'turbocharge' medical billing and drive up costs in the short term, saying the pain is worth it for long-term savings.
- Sep 24, 2026The New York Times reported a group of insurers released a report claiming hospitals' use of AI was responsible for nearly $1 billion in additional expenses over two years.