NEWS · MONEY · #1035
AI drives up costs for the NSA, hospitals, and insurers
Reports say the NSA will spend billions this year testing advanced AI models, with compute and staffing cited as the biggest costs, while enterprise usage-based pricing from providers makes AI expensive for large customers. Separately, a Blue Cross Blue Shield report alleges hospitals used AI-assisted coding to upcode cases and collect roughly $1 billion extra over two years, prompting insurers to use AI to contest claims and increasing billing disputes.
KEY POINTS
- Reports say the NSA will spend billions this year testing advanced AI models, with compute and staffing cited as the biggest costs, while enterprise usage-based pricing from providers makes AI expensive for large customers.
- Separately, a Blue Cross Blue Shield report alleges hospitals used AI-assisted coding to upcode cases and collect roughly $1 billion extra over two years, prompting insurers to use AI to contest claims and increasing billing disputes.
- This matters because AI is creating large new budget pressures across government and healthcare, affecting procurement, pricing models, and billing practices.
WHY IT MATTERS
This matters because AI is creating large new budget pressures across government and healthcare, affecting procurement, pricing models, and billing practices.