CONNECT WITH US
Tech

Tech

AI tools generated nearly $1 billion in extra costs, Blue Cross insurers say

CNBCTV18 - Tech logo

Published on

Add as a preferred source on Google
AI tools generated nearly $1 billion in extra costs, Blue Cross insurers say

Stock Market NSE IPO Listing Stocks to Buy Oil Prices Gold and Silver

AI tools generated nearly $1 billion in extra costs, Blue Cross insurers say

Between 2024 and 2025, providers more frequently billed for secondary conditions, or those stemming from a separate illness from the one they were treating, driving costs up by $653 million for BCBS companies during that period.

AI tools are raising health spending for insurers by nearly $1 billion over two years, as providers bill for more severe patient care, according to a Blue Cross Blue Shield Association study released Thursday. Between 2024 and 2025, providers more frequently billed for secondary conditions, or those stemming from a separate illness from the one they were treating, driving costs up by $653 million for BCBS companies during that period. Overall, more intensive care contributed $942 million in costs to BCBS firms over the two years, compared with 2023, the study added. BCBSA said providers used AI technology to identify secondary conditions by scanning existing patient records or using ambient scribes, which passively listen to conversations with patients and draft medical notes.

Patient visits where more complex medical care is documented command higher payments by insurers. In hospital settings, secondary or coexisting conditions can be categorized as more complex. “If patients are truly sicker, we'd expect to see more treatment,” said Luke Chalker, senior vice president of product and data science at BCBSA. Blue Cross Blue Shield Association has a network of 31 independent health insurance companies, covering over 100 million people, a representative said.


Source link
Related Topics:Tech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.