Health · Healthcare & Policy · 2 hrs ago
AI is taking a larger role in US medical billing and debt collection
Medical debt is expected to grow in the United States as Republican-led health cuts take effect this winter.
More than one in four US adults said they owed medical debt in 2025, including about one in four people with health insurance.
Higher deductibles and co-payments can leave insured people with bills they cannot afford, while some people may lose coverage.
When patients cannot pay for care, hospitals face more unpaid bills and may seek stronger ways to collect.
AI tools are already helping with medical coding, billing messages and calls or texts to patients.
Some companies also use data to estimate whether a patient can pay and to offer discounts, while hospitals are exploring these tools to manage costs.
The Urban Institute estimates the health cuts will lead to $278bn in unpaid care by 2034, as the number of uninsured people is expected to rise.
Artificial intelligence is increasingly being used in US medical billing and debt collection, including to code visits, contact patients and assess their ability to pay.
Medical debt is expected to grow as Republican-led health cuts take effect and more costs are shifted to individuals.
More than one in four US adults said they owed medical debt in 2025, including about one in four people with health insurance.
AI tools can help collectors set settlement discounts and help debt-buying companies price portfolios of unpaid bills.
The Urban Institute estimates that HR1 will lead to $278bn in uncompensated care by 2034.
- Who
- US patients, healthcare providers and medical debt collectors are affected. Companies such as Cedar offer AI-backed billing services.
- What
- AI is being used in medical billing and debt collection, including to code care, contact patients and assess payment prospects.
- When
- The use of AI is increasing; medical debt is expected to grow in coming years as health cuts take effect.
- Where
- United States.
- Why
- Health cuts and higher patient costs are expected to increase medical debt and unpaid bills, while providers seek to improve collections and control labor costs.
This story does not have two clearly opposing sides.
Medical debt will grow among “both the insured and uninsured, because of how we’re increasingly putting more costs onto individuals for those plans
We have been focused on uninsured and Medicaid-eligible patients for several years now
More than one in four US adults reported owing medical debt, according to an analysis by the Urban Institute and the Robert Wood Johnson Foundation.
Republican-led health cuts are expected to come into force.
The Urban Institute estimates HR1 will cause $278bn in uncompensated care.
- Medical debt in 2025
- More than one in four US adults reported owing medical debt
- Uncompensated care by 2034
- $278bn estimated by the Urban Institute
- Newly uninsured through 2034
- About 17 million individuals expected
- HR1 healthcare cuts
- Roughly $1tn in federal spending cut from the healthcare industry
- Cedar AI chatbot
- Kora
Sources
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