(DCNF)—Artificial intelligence is likely to fuel surging medical care costs to surge over the next year.
A PricewaterhouseCoopers (PwC) report released on June 11 projects that U.S. healthcare costs will increase 9% for employers and 8.5% for individuals in 2027. The expected increases are being driven by “AI-enabled revenue optimization tools,” rising reimbursement pressure among providers and heightened spending by pharmacies, according to PwC.
“The deeper channel is the one most [news] coverage misses, and notably PwC’s own analysts flag it: AI’s strength at spotting complex patterns can tip from earlier detection into overdiagnosis, which means more treatments and more spending,” Harvard Medical School Associate Professor of Medicine Hossein Estiri told the Daily Caller News Foundation.. “Call it the micro-versus-macro paradox. The Silicon Valley playbook says you automate a task, the product gets cheaper, and total costs fall. Medicine is not a factory supply chain. Making a clinical task nearly free can drive total spending up by expanding the market.”
“Ambient scribes that listen to a visit and draft the note are the clearest case, and they have genuine but marginal, evidenced value. Across more than two million uses, they have saved clinicians roughly 20 minutes a day,” Estiri continued. “But the same richer documentation captures more diagnoses and comorbidities, so under fee-for-service, the visit gets coded at a higher complexity and reimbursed at a higher rate even when the care does not change.”
Of health plans surveyed, 70% ranked providers’ use of AI-enabled tools that capture more revenue as one of the top three cost drivers, PwC’s report found.
Providers have begun to increasingly rely on AI tools in recent years. Usage of AI-powered scribes has become more widespread across healthcare sectors, partly in an effort to reduce documentation burden and combat burnout among clinicians, according to a September 2025 report from npj Digital Medicine.
Estiri noted that AI “is actually a small slice” compared to some of the other factors that are expected to fuel healthcare unaffordability next year.
“The cost that matters most is not financial,” Estiri explained. “Healthcare resources are finite, so every dollar spent on AI that does not improve outcomes is a dollar not spent on one that does, and every clinician hour spent learning a system that does not change care is an hour not spent with a patient.”
A recent Blue Cross Blue Shield Association report found that the increased use of AI in hospital billing is fueling higher costs by increasing the number and severity of diagnoses billed without any record of the expected treatment.
Proponents of AI have argued that the technology can actually help bring down medical costs. The use of AI tools in areas such as drug discovery, hospitals and value-based care could generate $400 billion to $1.5 trillion in total savings across the U.S., according to a Sept. 2025 report from Morgan Stanley Research.
“Where AI can be a boon [in the medical industry] is by helping specialization and the division of labor make health care more universal,” The Cato Institute’s Director of Health Policy Studies Michael Cannon told the DCNF. “AI is already enabling less-expensive clinicians—e.g., physician assistants (PAs), nurse practitioners (NPs), registered nurses (RNs)—to do more and more of what previously only doctors could do. It is inevitable that the AI will reach a point where it will enable RNs to do most of what doctors do, but at a much lower cost.”
Rising financial pressures from unaffordable health costs are quickly becoming a top issue for voters as the 2026 midterm elections loom. A Gallup poll published Thursday estimates that 2.8 million more Americans said they were unable to afford healthcare in 2025 compared to in 2024.
“AI is an extremely wonderful example of how markets make health care more universal as a matter of course,” Cannon added. “Unfortunately, AI is also an example of how regulation blocks that normal market process. The efforts by regulators and physician groups to stifle AI is an example of incumbent providers using government to protect their status, power, and incomes at the expense of consumers.”
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Two Storms, One Harvest
Every food crisis in living memory has been a one-shock event. The 2008 price spike was a commodity bubble. The 2020 shortages were a logistics failure. The 2022 grain scare was a war on one exporter’s ports. Each time, the system bent, adjusted, and recovered, and each time the experts assured us afterward that global markets are simply too big and too diversified to fail.
What nobody in Washington seems eager to discuss is that 2026 is shaping up to be something the modern food system has never actually faced. Two independent shocks, one climatic and one geopolitical, are converging on the same harvest cycle at the same time. Not sequentially. Simultaneously.
Start with the weather. The Pacific Ocean is currently building toward what forecasters now openly call a record event. NOAA’s Climate Prediction Center puts the odds of at least a strong El Niño near 88 percent, with roughly two in three odds it reaches “very strong” status, the tier reserved for perhaps three or four events in the entire satellite era. Every major global model now projects a median peak in Super El Niño territory, and most of them project it exceeding the 2015-16 event, which until now held the modern record. Sea surface anomalies were already brushing the super threshold in mid-July, months before these events normally peak. The atmosphere has already shifted into El Niño mode, and the event is forecast to crest in late fall and early winter.
This is not about “climate change.” It’s about the standard cycles of weather, and the cycle we’re currently in is one that has likely devastated societies in the past. We’re better prepared as a society today, but not all Americans are equally prepared.
Serious households have started doing the quiet math on their own. Grocery bills tell part of the story, and the forecast maps tell the rest, which is why long-term food storage has moved from fringe hobby to mainstream line item in the family budget, with established suppliers like Heaven’s Harvest seeing demand from people who five years ago would have rolled their eyes at the idea. That instinct is not paranoia. It is pattern recognition, and the pattern is worth walking through carefully.
Editor’s Note: Heaven’s Harvest IS a sponsor, but the warnings of this article are real and would be written even if we didn’t have a survival food sponsor. With that said, those who take advantage of what they offer can use promo code “Patriot” for 15% off.
The Fertilizer Clock Is Already Running
While the Pacific warms, the second shock has been unfolding in the Strait of Hormuz. The conflict with Iran turned the world’s most important energy chokepoint into a contested waterway, and the consequences reach far beyond the gas pump. Roughly a third of global fertilizer trade moves through Hormuz, and the disruption sent urea prices up 86 percent year over year by March, with a 53 percent jump in a single month.
The World Bank projects energy prices rising about 24 percent in 2026 and fertilizer about 31 percent. By its own accounting, fertilizer prices ran 35 percent higher in the first five months of this year than the same period last year.
Here is the mechanism the nightly news will not explain. Fertilizer is not a grocery item. It is a time-delayed input. The nitrogen a farmer in Iowa or Punjab could not afford to apply this spring does not show up as a problem this spring. It shows up as a thinner harvest six to twelve months later.
The World Bank’s own food security brief concedes that the effects of reduced applications earlier this season “are likely to become visible only later in harvest outcomes.” Translate that from institutional language into plain English and it means this. The damage is already done, it is already in the ground, and we are simply waiting for it to arrive on the shelf.
Now check the calendar. Six to twelve months from the spring planting season lands us squarely in late 2026 and early 2027. Which is precisely when the strongest El Niño in the instrumental record is forecast to peak, bringing its signature droughts to Southeast Asia, Australia, southern Africa, northern Brazil, and South Asia, the very regions that grow the world’s rice, sugar, and oilseeds.
The World Bank warns openly that a strong El Niño “could disrupt multiple crop belts simultaneously” on top of the conflict-driven input costs. Their baseline projection assumes the Middle East disruptions ease by autumn. What in the last two years of Middle East history suggests that assumption is safe?
The System Has No Slack Left
The comfortable answer is that global markets always adjust. But adjustment requires slack, and the slack is gone. Global cereal production is expected to decline from last year’s records even before El Niño does its work. The UN World Food Programme, hardly a den of right-wing preppers, is calling this the most significant disruption to its supply chains since Covid and the invasion of Ukraine, and its supply chain director put the stakes bluntly.
Today’s supply chain challenges are tomorrow’s hunger crisis.
There is also a political dimension that markets cannot price. When food gets scarce, governments do not behave like economists. They behave like politicians. Export bans, hoarding mandates, and panic buying at the national level turned the modest rice shortfall of 2008 into a global crisis, and analysts are already warning that import-dependent nations are the first dominoes.
The 2015-16 Super El Niño, a far weaker event than what is now forecast, threw tens of millions into food stress across Africa and Asia. This one is projected to be stronger, and it arrives with fertilizer already rationed by price and shipping lanes already contested by missiles.
What Joseph Knew
Scripture does not treat preparation for lean years as faithlessness. It treats it as wisdom delivered in advance to those willing to act on it.
Behold, there come seven years of great plenty throughout all the land of Egypt: And there shall arise after them seven years of famine; and all the plenty shall be forgotten in the land of Egypt.
Joseph did not respond to that warning with a hashtag or a committee. He stored grain during the years of abundance, and when the famine came, Egypt stood while its neighbors begged. The lesson is not that famine is certain. It is that the time to prepare is precisely when preparation still looks optional.
Nobody who filled a pantry in a year of plenty has ever regretted it, and nobody standing in an empty aisle has ever been glad he waited for certainty.
None of this calls for panic, and panic is the enemy of sound judgment anyway. It calls for the same unglamorous prudence our grandparents considered ordinary. Keep some cash margin, know your local growers, and put real food in deep storage while it is cheap and available, because the entire arc of this story is that cheap and available is a closing window.
Families looking for a straightforward place to start can visit Heaven’s Harvest and use promo code Patriot for 15 percent off long-term storable food. The forecasts may yet soften, the strait may yet reopen, and we should pray they do. But hope is a fine thing to hold and a foolish thing to eat.
