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Hospital A.I. vs Insurer A.I. Raises Health Costs

scienceSep 24, 202633647

The New York Times reports hospitals’ use of artificial intelligence to add secondary diagnoses and portray patients as sicker has increased payments by about $12,000 per case on average, driving nearly $942 million in extra hospital claims over two years. Insurers are responding with their own AI systems that automate prior authorizations, delays, and denials, leaving patients with unpaid bills or blocked care even though insurers say human oversight remains. A recent employer survey cited in the piece warned those shifts could push employer health costs up by about 11 percent next year unless benefits are cut. The article frames the situation as an escalating billing arms race of automated systems on both sides, with patients caught in the middle and downstream consequences for premiums, employer benefits, and access to care.

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