AI Tools Are Now Embedded in Hospital Billing Systems, Raising Questions Over Patient Costs

Artificial intelligence software is increasingly being used inside hospital billing departments to code medical claims, and insurers say the costs associated with that technology may be getting passed on to patients, according to a CNBC report.

Health insurers say AI-driven billing systems are contributing to rising claims costs within a health care system that was already under financial strain. Blue Cross Blue Shield has put the added cost from AI-related billing practices at close to $1 billion, the report said.

The use of AI in billing allows hospitals and health systems to process claims more quickly and, in some cases, to identify additional billable codes tied to a patient's treatment. Insurers argue that this can inflate the overall cost of claims submitted for reimbursement.

CNBC's report did not detail specific mechanisms by which individual patients might see higher costs, but noted that the broader expense is being absorbed into the health care system, which insurers warn is already burdened by rising costs.

The report highlights a growing tension between hospitals adopting AI tools to streamline administrative operations and insurers concerned about the downstream financial impact of that automation on premiums and claims costs.