Battle of Hospital A.I. vs. Insurer A.I. Is Pushing Medical Costs Higher

In the latest sign that artificial intelligence is fueling higher health care costs, a group of insurers released a report Thursday claiming that hospitals’ use of A.I.was responsible for nearly $1 billion in additional expenses over two years.Using codes for various medical conditions, hospitals submitted claims for tens of thousands of patients that described their illnesses as more complex in 2024 and 2025 than in 2023.

Despite the added conditions, there was no evidence that the patients had received different treatment from the hospitals, according to the analysis by the Blue Cross Blue Shield Association, which represents state Blue Cross plans.Using A.I.tools, hospitals are collecting more information about their patients, and submitting bigger claims, the association said.

“Coding is changing because of this technology,” said Luke Chalker, a senior vice president at the association.By describing patients as having more complicated conditions and adding a secondary diagnosis, like anemia or low sodium, the hospitals were paid an average of nearly $12,000 more per case.

A.I.has become an increasingly powerful tool in the continuing coding wars between insurance companies on one side and hospitals and doctors on the other.

Hammered by lawmakers at congressional committees, company executives and hospital officials have been pointing their fingers at each other for spiraling health costs.Dr.David Brailer, a health technology executive and former government health official, said A.I.

would lower the costs of the weapons in these battles over billing.In a recent piece in Health Affairs, an academic journal, he predicted A.I.

would be likely to increase overall health care spending.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you f...