Blockchain is a continuously growing list of independent records, called blocks, which are linked to create new transactions with each block containing a hash to link to the previous transactions
Ever since cryptocurrency bitcoin has taken the internet world by storm owing to the trust value it promises to the financial transactions over the internet, the underlying technology or blockchain has been garnering a lot of attention from all quarters. Data integrity is the foundation for blockchain, a vast, globally distributed ledger running on millions of devices and is open to anyone. Thus it holds tremendous potential for consumers across industries, especially health insurance.
Secure access to data is a primary need of the health insurance sector
The health insurance sector has seen immense growth over the last few years and consumers today are more aware of the need for health insurance. A recent study conducted by Max Bupa revealed that nearly 70% of the respondents considered health insurance to be more important than life insurance. However, concerns with respect to trust and consumer experience still linger, which if addressed can propel exponential growth of the sector and benefit consumers at the same time.
Information silos and its inaccessibility has also impacted consumer experience. When a distraught consumer calls his insurer for a claim, he often finds the process complicated and tedious. Hence, better data sharing between healthcare and health insurance providers can improve service delivery and reduce time taken to settle claims to a great extent. The above problems can be resolved through digitisation of information, which can provide instant access to all parties involved when needed. However, security limitations create a critical bottleneck in the flow of information and consumers are at the receiving end if their sensitive data is compromised.
Blockchain can be an effective enabler in building a robust medical ecosystem that connects disparate systems in the healthcare and health insurance industry together and address the flow of information in a secure manner.
Blockchain is a continuously growing list of independent records, called blocks, which are linked to create new transactions with each block containing a hash to link to the previous transactions. All these transactions are secured using cryptography. By design, blockchains are inherently resistant to modification of the data, which makes them suitable for the recording of events, medical records, and other records management activities, such as identity management and transaction processing.
Organisations can choose to implement a permission less blockchain, such as the Bitcoin blockchain, where anyone can participate in transactions and access information, or a permissioned blockchain that enables only intended users to validate the block transactions.
Prescrypt, a proof-of-concept developed by Deloitte Netherlands, in collaboration with SNS Bank and Radboud, gives patients complete ownership of their medical records, allowing them to grant and revoke provider access to their data.
Healthcare and health insurance organisations can use blockchain technology to verify a patient’s digital identity, genetics data, or prescriptions history, which will allow them to provide improved services.
Blockchain is a robust technology that can drive the healthcare industry, improve quality of care and lower the cost of delivery. Blockchain can help remove third party dependencies, thereby reducing administrative costs.
As blockchain technology adoption expands, the industry will need to adapt to changing financial models and care delivery, as it exhibits huge potential to become the next big technology innovation engine.
In recent times, the focus of the health insurance sector in India has shifted from “illness to wellness”, with the digital savvy millennials recognising the need to embrace preventive wellness solutions to stay healthy and fit. In fact, the Insurance Regulatory Authority of India (Irda) is also laying strong emphasis on driving this shift and blockchain can be the cornerstone for enabling this. A case in point is IBM's Watson Health artificial intelligence unit that has signed a two-year joint-development agreement with the US Food and Drug Administration (FDA) to explore using blockchain technology for medical research.
Blockchain has the potential to revolutionise the health insurance sector by empowering consumers with access to reliable information as well as offering customised solutions.
Statistics shows that India has the highest out of pocket expenses at 65%, the highest amongst BRIC countries. Availability of relevant information and health insurance solutions can perhaps help reduce this.
With a population of 1.27 billion people and only 460 million internet users, digitising the healthcare processes and implementing ground breaking technologies like blockchain will be a daunting task, but with the interest and support of the government and all ecosystem players, blockchain in healthcare and health insurance will no longer remain just a conversation.
WHAT'S A BLOCKCHAIN?
- Blockchain is a continuously growing list of independent records, called blocks, which are linked to create new transactions with each block containing a hash to link to the previous transactions
- By design, blockchains are inherently resistant to modification of the data, which makes them suitable for the recording of events, medical records, and other records management activities
The is managing director & chief executive officer, Max Bupa
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