2025 CAQH Index Shows U.S. Healthcare Avoided $258 Billion and Accelerated Automation, Interoperability and AI Adoption

New CAQH Index Pro platform gives organizations the insights they need to pinpoint cost drivers, compare themselves to national benchmarks and make confident, data-driven decisions

Published on Feb. 24, 2026

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The 2025 CAQH Index, the industry's leading benchmark on administrative automation, finds that U.S. healthcare avoided an estimated $258 billion in administrative costs in 2024 through electronic transactions and improved data exchange, reflecting more than two decades of progress despite ongoing challenges following the 2024 Change Healthcare cyberattack. CAQH is also introducing Index Pro, an interactive analytics platform that turns Index data into personalized business intelligence.

Why it matters

The CAQH Index shows how everyday healthcare processes like eligibility, claims and prior authorization are handled today and what they cost. Index Pro helps leaders understand their own numbers, measure the return on automation and prioritize changes that free up time and resources for patient care, especially as healthcare organizations face pressure to reduce administrative costs without disrupting care.

The details

The 2025 CAQH Index highlights measurable progress, including a 17% increase in administrative cost avoidance through automated transactions, a 9% reduction in medical administrative spend and a 4% reduction in dental administrative spend, and more than 50% of health plans and 25% of provider organizations using AI tools in administrative workflows. The report also documents growing adoption of FHIR-based exchange ahead of January 2027 requirements, as well as increased use of AI and machine learning in core administrative workflows.

  • The 2025 CAQH Index was released on February 19, 2026.
  • The report covers data and trends from 2024.

The players

CAQH

CAQH is the trusted data connector at the core of healthcare. For more than 25 years, the organization has powered the industry with the largest and most complete healthcare data foundation in the U.S., with more than 4.8 million provider data records sourced directly from providers and member data on 75% of covered lives supplied by health plans.

Sarah Ahmad

Sarah Ahmad is the CEO of CAQH.

Erin Weber

Erin Weber is the Chief Policy and Research Officer at CAQH.

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What they’re saying

“Healthcare leaders are under pressure to reduce administrative costs without disrupting care. The CAQH Index shows how everyday processes like eligibility, claims and prior authorization are handled today and what they cost. Index Pro helps leaders understand their own numbers, measure the return on automation and prioritize changes that free up time and resources for patient care.”

— Sarah Ahmad, CEO of CAQH (bakercityherald.com)

“Our healthcare system is complex, but behind every transaction is a patient seeking care and a provider working to deliver it. This year's Index shows that even amid major disruption, electronic workflows helped keep care and payments moving, easing the strain on providers and creating a more stable experience for patients.”

— Erin Weber, Chief Policy and Research Officer at CAQH (bakercityherald.com)

What’s next

The report documents growing adoption of FHIR-based exchange ahead of January 2027 requirements, indicating that further progress in healthcare automation and interoperability is expected in the coming years.

The takeaway

The 2025 CAQH Index shows that despite the challenges of the 2024 Change Healthcare cyberattack, the U.S. healthcare system has continued to make significant strides in reducing administrative costs and improving efficiency through increased automation, interoperability, and AI adoption, ultimately benefiting both providers and patients.