August 20, 2025
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Morning Rounds Writer and Podcast Producer

Good morning. The theme of today's newsletter seems to be: $$$ money $$$

Specifically: What's driving health costs up? What's getting covered by insurance and what isn't? Who's doing anything about it?

But also, mosquitos.

health tech

How AI scribes could raise health care costs
A neon-and-black graph that reads "health care spending" with a line trending upward floats in outer space.

Alex Hogan/STAT

Artificial intelligence companies offering automation for tasks like clinical documentation and medical coding have announced nearly $1 billion in funding so far this year. Companies like Ambience and Abridge are pitching their AI scribes — which listen to patient visits and then draft doctors’ notes — as a way to give patients the full attention of their doctors. But there’s another selling point for the tools: When used in combination with automated coding, they can ensure providers get paid the most money the notes justify. 

AI coding and billing software vendors told STAT’s Brittany Trang that patients won’t foot the bill for the larger invoices their tools create. That will fall to the insurer, they say. But some experts disagree. “Individuals end up paying for everything one way or another,” said health economics professor James Robinson. 

Read more from Brittany on how AI-enhanced billing could raise our health care costs. And check out this week’s video on the topic, which features some great additional insights from Brittany.

For more AI reading, we’ve got a new First Opinion essay arguing that AI should come with green, yellow, and red lights for mental health. Take a read.


business

What’s driving up employer health care costs in 2026

Here’s something to consider when weighing the claims above: Employers are going to spend a lot more money on health insurance next year due to higher costs driven by GLP-1 drugs, cancer, and mental health services, according to an annual survey.

In the survey, 121 employers who cover 11.6 million people reported that they expect health care costs to spike by a median of 9% next year. The strategies for how to manage ballooning costs vary, but can include raising premiums and deductibles for workers. Ellen Kelsay, CEO of the Business Group on Health, which ran the survey, calls passing costs to employees a “Band-aid approach.” Read more from STAT’s Tara Bannow on what’s ahead.


infectious disease

A ‘new normal’ for mosquito-borne diseases in Europe

The European Centre for Disease Prevention and Control warned today that record-breaking spikes for two mosquito-borne diseases point to a “new normal” of more widespread and intense transmission across the continent. There have been 27 outbreaks of the chikungunya virus in Europe so far this year, setting a new record. The disease is currently established in 369 European regions  — more than double what it was a decade ago. Similarly, West Nile virus has been consistently cropping up in new corners of the continent for decades, with 335 locally acquired cases and 19 deaths this year so far. 

“This makes prevention more important than ever, both through coordinated public health action and personal protection measures,” Céline Gossner, who leads the section on food, water, and vector-borne and zoonotic diseases at ECDC, said in a press release. For the best infectious disease reporting available — including on how the re-formulated ACIP recently voted on a chikungunya vaccine — follow STAT’s Helen Branswell



LGBTQ+ health

Gender-affirming care won’t be covered for federal employees in 2026

Starting next year, insurance companies providing coverage to federal employees will be prohibited from paying for gender-affirming care for trans people of any age, according to a letter sent to carriers on Friday from the Office of Personnel Management. It’s the latest in a torrent of decisions by the Trump administration that restrict gender-affirming care for trans people across the country.

There are nearly 14,000 trans federal employees in the U.S. according to the Williams Institute. The directive, which will likely be challenged in court, will also affect any trans family members of federal workers also covered by a federal plan, including Postal Service employees.

The letter specifically calls out gender-affirming hormones and surgery, clarifying that counseling services for gender dysphoria should still be covered, including controversial “faith-based counseling,” which can resemble conversion therapy. (The letter says the therapy must come from a licensed medical provider, but there’s some critical context needed here: This fall, the Supreme Court will hear a case in which a licensed therapist in Colorado is challenging the state’s law prohibiting licensed mental health professionals from engaging in conversion therapy, arguing that she should be allowed to do so based on her religious beliefs.)


first opinion

A senator calls for price transparency in health care

Americans spend about $5 trillion a year on health care, and reducing these costs is a top priority of this Congress on both sides of the aisle, according to Sen. Roger Marshall (R). In a new First Opinion essay, Marshall makes the case for new bipartisan legislation he’s introduced to increase price transparency.

“I practiced medicine before joining the Senate, and I saw firsthand that patients routinely couldn’t access the upfront prices they needed before treatment,” Marshall writes. “Price transparency can make health care efficient, as it does in every other sector of the economy.” Read more.


More around STAT
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What we're reading

  • Are marathons and extreme running linked to colon cancer? New York Times

  • In a new era, glucose sensors straddle the line between medical device and wellness tool, STAT
  • The two-word phrase unleashing chaos at the NIH, Atlantic

Thanks for reading! More next time,