Smart Health Tracker Data Sent to Insurers to Deny Your Claims

Smart health trackers have become a staple in many of our lives, helping us monitor our daily activity, sleep, and nutrition.

Some health insurance companies have started using this data to determine whether to approve or deny claims.

For instance, a study found that 75% of life insurance companies use wearable device data to assess risk.

This data is often used to identify patterns and trends that may indicate a higher risk of certain health conditions.

Insurance companies can use this information to adjust premiums or even deny coverage to individuals who are deemed high-risk.

Additional reading: Can Health Insurance Companies Deny Coverage

People who move frequently, walk with moderate intensity, and log 10,000 steps each day can earn more than $1,000 a year toward health care spending.

The participation rates for people with chronic conditions, such as diabetes, are actually significantly higher than for people without those conditions. This suggests that fitness trackers can be a valuable tool for engaging patients in their health.

Fitness trackers can be a useful motivator, as they provide a "nudge" to get people moving, just like a gentle reminder from a friend or family member.

However, the effectiveness of fitness trackers in improving health outcomes is still being studied, and some research has cast doubt on their ability to lead to weight loss.

In fact, a 2016 study by the University of Pittsburgh found that young adults who used fitness trackers lost less weight than those in a control group who self-reported their exercise and diet.

Some health insurers are now using fitness tracker data to offer financial incentives to their customers, which can be a powerful motivator to get people moving.

But it's essential to be aware of what kind of data your tracker is collecting and how it will be used. Your incentives could offer a clue – if your insurance company is offering you significantly more money than others, there may be something else they value in the data they're collecting.

Many health insurance companies are now using data from wearable devices to make decisions about policyholders. This data can include metrics such as step count, heart rate, and sleep patterns.

Companies like UnitedHealthcare are using this data to determine the likelihood of a policyholder filing a claim. For example, if a policyholder's wearable device shows they are not getting enough exercise, they may be considered a higher risk for certain health issues.

Wearable device data can also be used to deny claims. For instance, if a policyholder's wearable device shows they have been engaging in high-risk activities, such as extreme sports, and they file a claim related to an injury from one of these activities, the insurance company may deny the claim.

Some insurance companies are also using wearable device data to offer discounts to policyholders who demonstrate healthy habits. For example, if a policyholder's wearable device shows they are meeting their daily step goal, they may be eligible for a discount on their premiums.

This trend is expected to continue, with more insurance companies incorporating wearable device data into their decision-making processes.

The use of smart health tracker data to deny insurance is a complex issue with several challenges and concerns. Insurers must be transparent about what information is captured, stored, and shared, and how the data is used.

Consumers are apprehensive about sharing personal information, and insurers must obtain consent and authorization before accessing their data. Wearable technology provides biometric data similar to an individual's medical history, which insurers must handle with the highest standards of confidentiality and security.

The value of wearable data must be demonstrated using sound actuarial principles and expected experience to maintain consumers' trust. Insurers need to carefully design programs to protect against anti-selection or fraud, as individuals may modify their behavior for short-term benefits.

Device manufacturers are working to improve measurements to prevent incorrect readings, and insurers must ensure they have the infrastructure to handle massive volumes of data. Cross-functional teams will need to collaborate to make sense of the data and drive actionable insights.

Regulatory restrictions, such as Australia's community rating system, pose significant challenges. Insurers may not be able to deny policies or increase premiums based on an individual's behavior, but they can offer discounts for healthy habits.