The AI Is Fully Triggered, BCBS’s Impending MA Doom, Congress’ Failed Rural Health Plan

Hey all,

Happy Tuesday! The NY Times story on triggered AI reinforced my tactic of being really nice to artificial intelligence. You’ll be happy you did when we have robot overlords. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(Modern Healthcare) Can Blue Cross Blue Shield Survive Their Medicare Advantage Surge?

Blue Cross Blue Shield insurers have finally gained a strong foothold in the Medicare Advantage market, but financial pressures may threaten their newfound success. Rising medical costs, declining federal reimbursements, and policy changes have led major insurers like Aetna and Humana to scale back, creating opportunities for Blue Cross plans to grow, especially in rural areas. However, profitability remains uncertain, with some Blue Cross affiliates, like Michigan’s, reporting significant losses. While some insurers focus on traditional Medicare Advantage plans, others are leaning into the more lucrative Dual Special Needs Plans. The future of Blue Cross in Medicare Advantage remains uncertain as financial challenges persist. Full Article

(NYT) Study Finds Chatbots Like ChatGPT Show Anxiety in Therapeutic Settings 

A new study reveals that ChatGPT exhibits signs of anxiety when responding to traumatic narratives, raising concerns about its use in mental health support. Researchers found that after exposure to distressing scenarios, the chatbot’s anxiety score spiked—proving that even AI needs a trigger warning—though mindfulness exercises helped lower it. As chatbot therapy gains popularity due to a shortage of human therapists, experts argue that AI models should be designed with emotional resilience—but some critics worry that blurring the line between human emotions and AI responses could be ethically problematic. Full Article

(STAT) Congress’ Plan to Save Rural Hospitals Faces Low Adoption

 A new federal program, Rural Emergency Hospital (REH) status, was created in 2023 to help struggling rural hospitals by providing fixed monthly payments instead of traditional inpatient reimbursements, yet only 38 hospitals have opted in. While some, like Anson General Hospital in Texas, credit REH status with saving them from closure, most eligible hospitals find the trade-offs—such as losing inpatient care, swing beds for rehabilitation, and access to 340B drug discounts—too costly. Lawmakers are considering adjustments, like the REH 2.0 bill, to make the designation more appealing, but adoption may remain slow unless broader financial pressures force more hospitals to reconsider. Full Article