health
How AI is making health care even less affordable
For all of the ways AI could meaningfully improve patients' lives, making care more affordable isn't one of them.
TL;DR
- AI is expected to increase medical costs by 9% in the employer market and 8.5% in the individual market next year.
- AI-enabled software and scribes are used to capture greater billing complexity, with plans absorbing the increased costs.
- Current healthcare incentives favor "do more and get paid for more," leading companies to use AI for self-interest.
- AI may eventually reduce administrative costs and improve patient outcomes, making care more proactive and precise.
- The insurance industry will likely become more efficient with AI, but financial gains will be competed away.
- For-profit hospital operators may gain a market advantage over non-profit hospitals due to faster AI investment.
- AI could drive the adoption of value-based care models, rewarding lower total costs.