The use of artificial intelligence by hospitals to prepare and submit insurance claims contributed to an estimated $942 million in additional healthcare spending over a two year period, according to an analysis by the Blue Cross Blue Shield Association.

The analysis found a significant increase in the number of patients being documented as having complex medical conditions.

However, the association said there was a disconnect between medical coding and the treatment patients received, arguing that there was no corresponding evidence of changes in the level of care provided.

The findings have added to a wider debate about the impact of artificial intelligence on healthcare costs. 

Insurers and hospitals have long disagreed over medical treatments, billing and reimbursement, but some industry observers say the growing use of AI by both sides could intensify those disputes.

Dr. Shiv Rao, founder of AI healthcare company Abridge, acknowledged that artificial intelligence could create a situation in which automated systems on opposing sides compete against each other. 

However, he also argued that AI could eventually help reduce tensions and lower costs.

Blue Cross Blue Shield Association senior vice president Luke Chalker described the current situation as heavily unfavorable to insurers, arguing that AI assisted processes are creating significant challenges for the insurance industry.

Source: TechCrunch