AI scribes, GLP‑1 drugs and mosquito outbreaks: five forces pushing health spending higher
AI-enhanced billing, rising drug and mental‑health costs, expanding mosquito-borne disease, federal limits on gender‑affirming care, and calls for price transparency are reshaping health spending and coverage.
STAT’s roundup highlights several converging pressures raising health costs and shifting coverage. AI companies offering automated clinical documentation and coding — buoyed by nearly $1 billion in funding this year — claim their tools improve care and billing, but experts warn AI-enhanced coding could drive higher insurer payments that ultimately burden individuals. Employers covering 11.6 million people expect median health‑care cost increases of 9% next year, driven largely by GLP‑1 drugs, cancer care, and mental‑health services, with employers considering premium and deductible hikes. In Europe, record chikungunya outbreaks and persistent West Nile virus cases suggest a “new normal” of wider mosquito‑borne transmission. Domestically, the Office of Personnel Management directed insurers to stop covering gender‑affirming hormones and surgery for federal employees in 2026, while Sen. Roger Marshall is pushing bipartisan price‑transparency legislation to help patients access upfront costs. The newsletter also points to related reporting on vaccines, recalls, and medical devices.
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