America’s largest health insurance providers, Humana and United Health Group, are collaborating on a program that will witness the creation of a Blockchain platform for Health Insurance Data management.
In a sparingly publicized presser, the program teams confirmed that they will be sharing, time and resources in a bid to put together a Blockchain technology that will address the Insurance market inefficiencies: The Policyholders and Healthcare providers withhold vital data from the Insurers leading to coverage of uninsurable interests and consequential fraudulent claims.
Other entities that will be directly involved with the program are the Optimum Unit, Multiplan and Quest Diagnostics. These firms will play a crucial role in ensuring that the blockchain captures relevant data to make the venture viable, profitable and relevant to solving the Healthcare Insurance inefficiencies.
Interestingly, this joint select committee overseeing the implementation of this program announced that the Blockchain would not have a Crypt coin as a unit of measuring the value of transactions. On further, probing, the team revealed that they have not considered about any Initial Coin Offering and neither have they also thought of the unit of measure of value. Will the Blockchain have a Wallet supporting exchanges of Bitcoin, Ethereum Ripple, Litecoin, Monero, Dash and so on?
Currently, the Healthcare Insurance Services providers are focused on creating an ecosystem of Data that will be secured by the smart contract and encryptions and be readily available to any healthcare service provider in need of information.
Optum’s Senior Engineer in charge of the program, Mike Jacobs, disclosed earlier in an interview that the mission of the program is to efficiently use the Blockchain technology to support operations of healthcare insurance providers and other research industries.
The Immediate benefit on the Insurers’ part is; Cost effective data management, reduction in fraudulent claims, reliability and efficiency in accessing data, and easy of crosschecking risk and compliance of the company.
To the policyholders, the Blockchain technology will result in timely claims processes, ease of insurance renewals, inceptions, and endorsements.
To the Healthcare providers, the Blockchain ecosystem will enable researchers to determine trends in diseases prevalence and device preventive and curative measures with specific details on hand.
To summarize the benefits, Mike Jacobs, pointed out that there will be no need for data reconciliation, as up to date information will always be made available from the patients’ clinical history ledger update. Insurance firms will, therefore, price policies accordingly and this might see low-risk individuals enjoy good discounts.
The programs steering members David Murtagh (Vice President, Multiplan) and Lidia Fonseca (CIO, Quest Diagnostics) alluded that a pilot program will run in Summer. The findings of the pilot program will then be publicized in Fall.
A Sneak Peek into the Future
Blockchain experts have pointed out that the program will be instrumental in informing Insurers on utilizing the blockchain technology for their benefits. Earlier in the year, a group of Insurers and Reinsurers announce that they are developing a Blockchain for insurance transaction; no progress has been heard ever since. With Humana and UnitedHealth Group involvement, we expect to see renewed interest among Insurers.