The New York Times reports:

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. [Continue reading…]