AI Helps Patient Negotiate $163,000 Off Hospital Bill

In a complex healthcare system, AI is giving patients more power to fight unfair medical charges.

Published on Feb. 13, 2026

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Matt Rosenberg used the AI assistant Claude to negotiate a $163,000 discount on a $195,628 hospital bill after his brother-in-law's death. Rosenberg discovered the hospital had improperly unbundled charges, billed for procedures his brother-in-law never received, and charged fantasy "chargemaster" prices that no insurer would pay. With Claude's help, Rosenberg was able to identify the correct Medicare reimbursement rates and successfully negotiate the bill down to $32,500.

Why it matters

This case highlights the power imbalance between patients and hospitals in the complex U.S. healthcare system, where hospitals maintain opaque billing practices that count on patients being too intimidated or uninformed to challenge them. Rosenberg's use of AI shows how these tools can help level the playing field and give patients more leverage to fight unfair charges.

The details

After Rosenberg's 62-year-old brother-in-law suffered a fatal heart attack, the hospital bill arrived a month later for $195,628. Rosenberg, a former ad agency executive, decided to challenge the bill rather than have his sister-in-law pay it. He requested an itemized bill and discovered the hospital had unbundled charges, billing separately for items that should have been included in a single bundled payment under Medicare rules. The hospital also billed for procedures his brother-in-law never received. Using the AI assistant Claude, Rosenberg was able to determine that Medicare would have paid only around $28,675 for the same services. He then verified Claude's analysis with ChatGPT before negotiating the bill down to $32,500.

  • In June 2025, Rosenberg's brother-in-law suffered a fatal heart attack.
  • One month later, the $195,628 hospital bill arrived.
  • Rosenberg requested an itemized bill and used AI to analyze the charges.
  • Within a week of presenting the hospital with Rosenberg's findings, they agreed to a $32,500 settlement.

The players

Matt Rosenberg

A marketing consultant and former television writer who used AI to negotiate a $163,000 discount on his brother-in-law's hospital bill.

Community Memorial Hospital

The hospital that treated Rosenberg's brother-in-law and initially billed $195,628, which Rosenberg was able to negotiate down to $32,500.

Claude

An AI assistant developed by Anthropic that Rosenberg used to analyze the hospital's billing codes and determine the appropriate Medicare reimbursement rates.

ChatGPT

Another AI system that Rosenberg used to verify the accuracy of Claude's analysis before negotiating with the hospital.

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What they’re saying

“The opacity isn't impenetrable; it's just tedious. The rules exist, published in federal registers, available to anyone willing to decode them. The system counts on people not having the time, energy, or knowledge to understand it.”

— Matt Rosenberg (businessinsider.com)

What’s next

Rosenberg plans to continue using AI tools like Claude to help other patients navigate the complex U.S. healthcare system and fight unfair medical bills.

The takeaway

This case demonstrates how AI can empower patients to challenge opaque and unfair hospital billing practices, leveling the playing field in a system that has long favored providers over individuals. As these tools become more accessible, more patients may be able to avoid paying exorbitant medical bills they cannot afford.