Ruth Reader here. It’s my first week at Second Opinion, and my very first introduction to our weekly roundup. For anyone new to my work, I’m a long-time tech reporter who started covering the intersection of health and tech back in 2019. Up until recently, I was a reporter for POLITICO, where I got a close look at the politics of health innovation. I’ll occasionally be taking over the weekly roundup to share what I’m seeing and hearing from the frontlines of healthcare, technology and policy.

There is increasing pressure on technology to reduce the cost of health care. 

Americans’ anxiety around health care costs is growing, with two-thirds of people ranking concern about the price of health care above utilities, food, housing, and gas in a January KFF poll. Those who get their insurance from the Affordable Care Act’s Health Insurance Marketplace are feeling the burn of premium increases. In 2026, 8% of enrollees will pay more than $500 in premiums—double the amount that did last cycle—according to new data from the Centers for Medicare and Medicaid Services. Other Americans have downgraded their insurance coverage in order to pay lower premiums. 

What can artificial intelligence do about this?

So far, evidence is mixed on whether AI may increase or decrease health care costs for consumers. An analysis of Blue Cross Blueshield Association data from earlier this month found that use of AI in health system billing departments is increasing costs for insurers. Of course, health insurers have also been accused of using AI to inappropriately deny coverage, thereby passing health care costs onto consumers. 

Anyone with an AI innovation wants to get paid for it, but whether or not that product adds costs to the overall system matters. The government is willing to pay for some of this technology—if it can take the cost out. Department of Health and Human Services chief counselor and deputy administrator for CMS, Chris Klomp, has told Second Opinion the agency is willing to pay for AI that’s deflationary. 

This tells us there is an opportunity for AI that reduces costs—a trend that is only likely to continue. Voters are extremely concerned about health care costs, as I noted above. As we head into the midterm election campaign season, there is pressure on both Democrats and Republicans to deliver on lower health costs themselves. Ultimately, that means pressure on health businesses of all kinds.

This past week, we saw big adoption of AI in health systems—particularly ambient scribes. But what is the ROI? Smart health care entrepreneurs should be asking themselves how their use of these innovations doesn’t just bring in more money, but how they reduce costs for patients. Here’s your summary of the news of the week, curated by Christina Farr, Meredith Nolan, and our freelancer Annalisa Merelli.

Three-quarters of health systems are now using AI, up from 59% in 2025, according to a new survey. Organizations have moved past pilots and are using AI to tackle capacity and operational issues. More than half of the health systems surveyed said AI returned double the investment. 

Heidi Health, valued at $465 million, is expanding into hardware. The Australian company — an outside competitor of Silicon Valley giants — created a wearable microphone that doctors can use to record their visits without the need for a laptop. It features a “kill switch” that allows it to stop recording, which the company says is a move to combat “always listening” ambient AI. 

Can you tell an AI-generated X-ray from a real one? Try this quiz. It’s surprisingly hard! A study published in Radiology found that when presented with both real and synthetic X-rays, a majority of radiologists didn't notice the deepfakes (to be fair, they hadn’t been alerted to the presence of the fake X-rays). Still, some 41% did catch on.  

Neion Bio, a biotech startup, emerged from stealth by announcing that it is developing three new drug compounds with a pharmaceutical company. These drugs are created using chicken eggs, a feat that previously eluded biotechnology research, and could cut the price of new drug production to a tenth, or even hundredths. 

Doctronic raised $40 million: The AI doctors startup closed a Series B round co-led by Abstract and Lightspeed Venture Partners. This latest funding brings the total raised by the company to $65 million.

Qualified Health raised $125 million: The company, which provides a platform to enable scalable AI adoption in healthcare systems, closed a Series B round led by NEA.

Blossom Health raised $20 million: The company, providing AI support for psychiatric care, closed Seed and Series A rounds.  

Thesis Care raised $45 million: The AI platform for clinical care capacity, formerly known as Trovo Health, closed a Series A funding round led by Oak HC/FT. 

Adonis raised $40 million: The company, which uses AI to prevent insurance denial and support claims resolution, closed a Series C round led by Quadrille Capital. Its total capital stands at $95 million.