Blue Cross Blue Shield study says AI upcoding is driving up prices

Health insurers have recently raised concerns over hospitals using AI for medical coding and billing, claiming it increases health care costs.
Insurers argue that this practice negatively impacts their financial performance and are implementing measures to counteract it and reduce payments to doctors for unjustified higher billing.
Prior to a new report, there was no publicly available evidence that AI coding leads to overbilling by hospitals.
A recent report from a data analysis firm linked to Blue Cross Blue Shield Association provides the first evidence suggesting AI-driven coding might be increasing expenses, potentially contributing to $663 million in additional inpatient spending.
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