AI tools generated nearly $1 billion in extra costs, Blue Cross insurers say

AI tools are raising health spending for insurers by nearly $1 billion over two years, as providers bill for more severe patient care, according to a Blue Cross Blue Shield Association study released Thursday.

Between 2024 and 2025, providers more frequently billed for secondary conditions, or those stemming from a separate illness from the one they were treating, driving costs up by $653 million for BCBS companies during that period. Overall, more intense care contributed $942 million in costs to BCBS firms over the two-year period, when compared to 2023, the study added.

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