Blue Cross Blue Shield: AI tools drive $1 billion rise in health insurance costs

A study by the US-based Blue Cross Blue Shield federation indicates that the use of artificial intelligence tools has increased health insurance spending by nearly $1 billion over a two-year period. The rise is attributed to healthcare providers using AI to identify and bill for secondary health issues—distinct conditions arising from a patient's primary illness—which results in higher reimbursement claims for more complex care.

Between 2024 and 2025, the billing of these secondary health problems led to an additional $653 million in costs for companies within the federation. Overall, the intensification of care levels raised total costs for Blue Cross Blue Shield by $942 million during the 2024-2025 period compared to 2023. Providers utilize AI to analyze existing patient records or employ medical documentation systems that transcribe patient consultations into medical notes.

Luke Chalker, senior vice president of products and data science at Blue Cross Blue Shield, noted that if patients are indeed suffering from more serious health issues, an increase in treatments is expected. Other insurers, such as Centene, have also indicated that AI tools in healthcare systems have led to excessive or inflated insurance payments.