Here’s Why Blockchain Is the Future of Health Insurance!
Blockchain, a technology that has been the subject of debate for several years now is gaining popularity over the past few years. While every field has a strong reason to implement this to store data, we believe healthcare and insurance is one field that deserves it the most.
And research evidence suggests that blockchain in healthcare and insurance could benefit millions of people globally.
What is Blockchain?
Blockchain, in the simplest terms, is a way of storing data on the cloud. It stores huge chunks of data in blocks with timestamps and links to the previous blocks of data.
As these blocks are linked to each other, they form a chain of data or the blockchain. It acts as an online distributed ledger with high-security encryption levels and can be shared with peers seamlessly.
How Does blockchain work in healthcare and insurance?
Decentralization of Information
The lack of proper information about a patient’s medical history at times of emergencies leads to many deaths every year. When the patient is not in a situation to share their healthcare information, and it is impossible to find them all in one place, healthcare professionals find it difficult to start the treatment on time.
However, if you have the patient history stored on the blockchain, the doctors can recover it with ease. They will be able to access everything from a patient’s history of medical allergies to insurance availability in one place. In simpler terms, it decentralizes information and makes sure the information is available with ease to everyone.
When you introduce blockchain to store healthcare information, it makes the process of finding out forged information. As every transaction has a timestamp, it is impossible to delete or remove any patient entry trace into the system. Every year around $80 billion is paid for fraudulent insurance claims as across North America. This accounts for around five to ten percent of the claims cost among the U.S. and Canadian insurers.
With blockchain, the information about insurance claims and patient records is available across networked computer systems. This way, it is easy not just to update the information and access them, but also to track any suspicious activities. An increase in data storage security, which reduces insurance fraud, means a better possibility of claims for the deserving. The common man might also eventually benefit from reduced premiums as the insurance companies have enough money to pay for the deserving and prevent paying out the scammers.
Reduced Processing Time
Remember the number of times you had to seek medical attention but end up skimming through the whole list of network hospitals? And then the list of hospitals where you can get treatment but will have to pay for it and get a reimbursement from your insurance provider and the huge amount of paperwork that went into the process? Not to forget the days and weeks of waiting to get the claims approved! Well, all that will be a thing of the past if they introduce blockchain into the insurance sector!
As the information is centralized and accessed by anyone, it takes less time to get your insurance claim approval. In most cases, third-party insurance cover only makes it difficult for people to claim their insurance coverage. However, blockchain, this process is streamlined, and it is easy for insurance providers to verify the authenticity of the claims and process the claims instantly.
Reduced Scope of Human Error
As most claim processing happens manually, the payer might have to go through a lot of paperwork and running around if the provider moves out of the payer’s network. Recent research found that around 40 percent of the payers provide data that has errors in it. And this only makes the claims process hard as the missing information, and wrong entries need to be fixed before going forward.
And when there are changes made to the data, it goes through many systems before it is approved and processed. All this not just causes delay, but also increase the cost of claims dispersal. Blockchain reduces human error scope and can also be validated online and made accessible to all stakeholders. This not just reduces the errors, but also significantly reduces conflicts and the claims dispersal time.
These are just a few of the many advantages of blockchain in the field of health insurance. Can you think of any more reasons why the health insurance sector should use blockchain? Tell us now!
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