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

By Amina Niasse NEW YORK, Sept 24 (Reuters) — 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 intense care contributed $942 million in costs to BCBS firms over the two-year period, when compared to 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