Ayo Mseka reports for InsuranceNewsNet that artificial intelligence is increasing health care costs for two principal reasons. First, people are seeking treatment more often after using AI to self-diagnose. And, second, physicians and hospitals are using AI to ensure that their claims are accurate and to maximize their payments, requiring insurers to spend more.
In addition, AI creates what can be a large administrative expense for insurers, eating into their profits.
People had thought AI would reduce health care costs because people would not need to see physicians as much. But, after using Claude or Chat GPT, many people are scheduling appointments with their doctors for treatments they never would have sought out in the past.
Moreover, insurers have always saved money through claim denials stemming from incomplete provider claims and other missing data. But, with AI, providers are better able to ensure their claims are complete and insurers have less reason to deny them.
Insurers cannot stop patients and providers from using AI, so they need new strategies to maximize their profits. One strategy is for them to do a better job of reducing administrative costs, improving their infrastructure. Of course, another is to raise their premiums, increase their use of prior authorization and narrow their networks.
Here’s more from Just Care:
- Artificial intelligence machines can prompt physicians to discuss end-of-life issues
- The dangers of relying on AI for your therapy
- AI can second-guess physicians and improve care
- Should AI help with end-of-life decisions?
- Next frontier: Eye exams using artificial intelligence
