Blockchain has the promise of being a truly revolutionary technological development for private health exchanges. Blockchain is based on the same system that allowed Bitcoin to quickly become a worldwide “virtual currency.”
Generally speaking, Blockchain involves a system that keeps a digital record of all transactions. It allows every participant in an online operation to manage their own information and participate with each other without the need for a central control authority.
What does that mean for a health exchange? It eliminates middlemen and inefficiencies, allowing customers (or their brokers) to directly contract online with their health insurer while protecting privacy, only allowing the insurer to access information that’s relevant to the contract.
For example, only your health details would be available to the insurer, not information related to a dental or life insurance contract. Blockchain can also optimize sharing of information between doctors, patients, and insurers, and allow each party to a health insurance agreement to access all transaction information instantly.
Insurance companies will also benefit from Blockchain, greatly reducing compliance costs, streamlining the costs of interacting with customers and improving security.
Blockchain is coming rapidly. And private health exchanges are already here, reshaping the face of health insurance.