Supported
Individual vs. Structural
IndividualStructural

Healthcare risk-prediction algorithms underestimate Black patients' care needs

Widely used healthcare risk-prediction algorithms systematically underestimate how sick Black patients are, because they use past healthcare spending as a proxy for health need — and Black patients historically generate lower costs than equally sick white patients due to unequal access to care, meaning the algorithm reads the access gap as a health gap and allocates less care where structural barriers already exist.

Obermeyer and colleagues' analysis of a commercial algorithm applied to tens of millions of patients found that at the same algorithmic risk score, Black patients had substantially more chronic illness than white patients; correcting the bias would nearly triple the share of Black patients flagged for extra care (from 17.7% to 46.5%). The mechanism — cost as a proxy for need — is transparent and by design, and the same proxy choice pervades the industry. The finding rests heavily on one (very large, very rigorous) study of one algorithm family, which is the main limit on replication breadth.

This claim analysis is fresh and accurate as of 2026-07-07

Who benefits from the prevailing framing
Insurers and health systems that reduced care-management costs by using spending-based targeting that quietly excluded high-need, low-cost patients; algorithm vendors who sold risk scores as objective clinical tools without validating them against health outcomes across racial groups; and healthcare organizations that could attribute disparate care allocation to a neutral-seeming formula.
Comparator cases
Obermeyer et al. (2019) Science study of a commercial risk algorithmCost-proxy prediction targets industry-widePost-2019 algorithm revisions and regulatory scrutiny