Making up almost 20 percent of the nation’s GDP, the United States spends more on healthcare than any other country and consumers are still questioning the costs and quality of care.
Nasdaq has called the current health insurance situation “a mess,” but new solutions have yet to prove viability and demonstrate successful reform to the industry.
The Blockchain movement is now putting into question the future of the health insurance market as it aims to change the way processes are carried out and how the Healthcare Value Chain interacts.
Blockchain is, simply put, a digital ledger—a chain that keeps track of records through cryptography. Its appeals include higher efficiency and security but skeptics question the viability and trustworthiness of technology playing such an integral role in a rather delicate field.
Although the technology has been around for quite some time, it is just now gaining stead in various markets.
CB Insights lists a few ways Blockchain has the possibility of improving health insurance delivery and quality:
- Eliminating common sources of fraud by moving claims onto an immutable ledger.
- Facilitating and increasing efficiency of property and casualty insurance policies through smart contracts.
- Increasing interoperability by allowing medical records to be shared throughout the healthcare ecosystem.
- Securing reinsurance contracts through smart contracts.
In order to protect against fraud and prevent risk, billions of dollars are poured into preventions but with dissipating fraud in insurance comes higher margins for the company which will in turn cause lower premiums for consumers.
In a Medium article, Dr. Alex Cahana explains how Blockchain has the possibility of fixing the opioid and healthcare crisis. He writes about restoring trust and the importance of decentralizing the healthcare system in order to overall improve the market.
To read more about how CryptoHealth Solutions can change the market, click here.
To read deeper into how Blockchain has the possibility of changing the health insurance market, visit CB Insights.