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Analyst Says Apple to Launch Health Insurance Product in 2024
A bit creepy that they might use Apple Watch data to monitor the insured and what the implications to healthcare privacy might be: https://forbes.com/sites/barrycollins/2022/10/18/apple-will-launch-health-insurance--in-2o24-says-analyst/?sh=42fa1f1e62db Part of me thinks this is way outside their area of expertise. Yet if they price the insurance aggressively low based on the data they collect, I could see it being a financial success. Then again, all sorts of discrimination cases could emerge about premium pricing.
Seems very unlikely for Apple to take on something like this. Too much regulatory issues to deal with and a very thin profit margin with little upside for their brand. At best, maybe they partner with an existing healthcare provider like they did with Goldman Sachs to launch the Apple Card.
When I see reports like this, my antennae go “who is this analyst and what is their predictive track record?"
CCS Insight believes that Apple will take its tentative first steps into the U.S. health insurance market in partnership with a major insurer, using the health data it’s already collecting to give it a competitive edge over rivals.
Apple already collects data such as blood pressure, blood oxygen levels, ECG readings and body temperature from the Watch, as well as helping people regulate their medication. With accompanying devices, the Watch and iPhone can also be used to monitor conditions such as diabetes.
The analysts believe having access to such rich data will give the company a head start in the insurance market and allow it to cut costs for consumers.
“They are in such a strong position to do this,” said Ben Wood, chief analyst at CCS Insight. “They’ve got a wealth of personal health data through Apple Watch. If they join some of the dots together they can become a very competitive health insurance player and that potentially is going to have quite an impact on the structure of the healthcare market in the U.S.”
Funny because the fact that they're storing this information and possibly using it for other purposes would make me not want to buy the watch. Everyone here makes good points, though.
Thanks. I did read the article before posting the reply and noted the reference to CCS Insight. It’s not an analyst I’ve seen before in my many years of keeping up with Apple news and rumors so it’s hard to judge the accuracy of their predictions. (Especially since Forbes has become a bit click-baity in recent years.)
It’s not AAPL who’s been talking about an Apple TV (though they have products in the streaming box and video service space) or an Apple Car, it’s outside pundits and analysts. AAPL is well-known for playing its cards close to its vest and doesn’t announce products until just before they’re ready to ship. Unlike other tech companies, it doesn’t talk about products under development that may or may not come to market.
If this is opt-in, okay....I won't. But if this is some kind of 'special discount' you get by sharing your data with an insurer and/or are "induced" into doing it, I will toss my Apple Watch aside faster than you can say "privacy geek."
This could be a gold mine for insurers to suddenly find a ton of 'pre-existing conditions' (aka your medical history) to deny or restrict coverage.
If this is opt-in, okay....I won't. But if this is some kind of 'special discount' you get by sharing your data with an insurer and/or are "induced" into doing it, I will toss my Apple Watch aside faster than you can say "privacy geek."
This could be a gold mine for insurers to suddenly find a ton of 'pre-existing conditions' (aka your medical history) to deny or restrict coverage.
The ACA prohibits insurers from denying coverage based on pre-existing conditions. (Not that I would want to share my info either.)
The information there is at best poorly written. If it is meant to describe only individual plans, the writing is poor because it doesn't say that. If it is meant to apply more generally, it is simply wrong.
There is a lot in the ACA that is specifically targeted to Medicare. So I don't wish to give the impression that the ACA does not apply at all to Medicare.
In addition to Medicare supplemental plans, the medical underwriting restrictions in the ACA do not apply to large employer plans. Though they do apply to small employer plans. The rationale for the distinction is that if a small employer has one employee who is costly to insure, and if the insurer consequently hikes the plan rate, it could become unaffordable for the employer. Health coverage for every employee might vanish as a result.
The Affordable Care Act limits the factors that can be used to charge consumers greater health insurance premiums. For insurance coverage effective January 1, 2014, health insurance issuers in the individual and small group markets are allowed to vary premiums based on age (within a 3:1 ratio for adults), tobacco use (within a 1.5:1 ratio and subject to wellness program requirements in the small group market), family size, and geography.
Comments
When I see reports like this, my antennae go “who is this analyst and what is their predictive track record?"
AAPL has been talking about Apple TV, Apple Car, etc. Suddenly, it is Apple Healthcare.
Thanks. I did read the article before posting the reply and noted the reference to CCS Insight. It’s not an analyst I’ve seen before in my many years of keeping up with Apple news and rumors so it’s hard to judge the accuracy of their predictions. (Especially since Forbes has become a bit click-baity in recent years.)
@yogibearbull
It’s not AAPL who’s been talking about an Apple TV (though they have products in the streaming box and video service space) or an Apple Car, it’s outside pundits and analysts. AAPL is well-known for playing its cards close to its vest and doesn’t announce products until just before they’re ready to ship. Unlike other tech companies, it doesn’t talk about products under development that may or may not come to market.
This could be a gold mine for insurers to suddenly find a ton of 'pre-existing conditions' (aka your medical history) to deny or restrict coverage.
Does that prohibition also apply to insurers operating outside the ACA?
The ACA pre-existing condition requirement covers ALL health insurance plans unless it’s a grandfathered plan: https://www.hhs.gov/healthcare/about-the-aca/pre-existing-conditions/index.html
Medicare supplemental health insurance plans can deny coverage (except during initial open enrollment period or in special circumstances) based on health conditions.
https://www.medicare.gov/supplements-other-insurance/when-can-i-buy-medigap
There is a lot in the ACA that is specifically targeted to Medicare. So I don't wish to give the impression that the ACA does not apply at all to Medicare.
In addition to Medicare supplemental plans, the medical underwriting restrictions in the ACA do not apply to large employer plans. Though they do apply to small employer plans. The rationale for the distinction is that if a small employer has one employee who is costly to insure, and if the insurer consequently hikes the plan rate, it could become unaffordable for the employer. Health coverage for every employee might vanish as a result. https://www.cms.gov/CCIIO/Programs-and-Initiatives/Health-Insurance-Market-Reforms/Market-Rating-Reforms