CCS Insights has predicted that Apple will take their first steps into the U.S. health insurance space in 2024, by partnering with a major health insurer, as reported by Forbes. Many in the industry believe that Tim Cook’s 2019 statement that ‘Apple’s most important contribution to mankind to be in health’ could be indicative of the company moving in this direction. Apple can use this to build on their current health offering and could potentially leverage data already collected through the Apple Watch to gain a head start on its competitors.
Why it’s Notable:
Apple already has a wealth of personal data including health data such as: ECG, blood pressure, blood oxygen levels, and body temperature through the Apple watch. Their solutions are also becoming more widely used across the healthcare sector and with so much data generation, Apple already has a platform on which to build a connected health ecosystem.
Furthermore, the move would allow Apple to build upon their service business, currently generating approximately $20 billion a quarter. Apple is already active in virtual care, particularly in the wearables space, clinical research, and patient services, which includes Apple’s Health Records. Apple will benefit from having several business streams, when compared to other U.S. insurance companies.
Industry Implications:
Apple could become very competitive in this space which could give them a head start on their competitors. Data collection could allow delivery of more patient centered care, remote patient monitoring, allowing early identification of health problems and more effective, personalized treatments could cut costs for patients and payers.
Given that lifestyle diseases such as obesity, diabetes, etc. can be mitigated with healthier habits, using data to inform health insurance could help to drive prevention of these diseases, incentivising healthy behaviors, as well as improving costs. However, user acceptance for tracking of personal data for health insurance modeling may be a challenge.
HealthXL’s Big Tech Report highlights some of the challenges facing Big Tech in digital health. Entering into the health insurance space could give Apple a competitive advantage, with an opportunity for them to approach healthcare with a more service based revenue model, as well as increasing interoperability between stakeholders and improving their access to healthcare data.
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