Smartwatch – What does a smartwatch have to do with healthcare costs? We know that the devices include fitness functions similar to fitness bands, but fitness activities promote your health, something which healthcare providers and employers are very interested in. Healthcare apps appear to be a major attraction and while many believe that these may be just a passing trend, others think that they might change our lives for the good. Healthcare apps have been available for some time, but now new ways are being explored to create value for the user.
The company behind Pact, a free healthcare app, has now released a new business model for making money in the healthcare business. Downloading the app allows users to place a bet on their workout goals. The user commits to a certain workout regime and if the goals are achieved, the user will be rewarded with cash. If the goals are not reached, the user pays money into a pool that will be divided amongst other participants who reach their goals. These activities are recorded on a smartphone and the GPS location, pictures, etc. are used to verify your workout. This is a very interesting scheme for keeping you active.
With wearable devices like fitness bands and their smarter cousin the smartwatch, tracking fitness activities can be controlled not only more easily but also more accurately.
Now a new business model has been created in which employers can pay part of the deductible if the user adheres to workout regime. The following graph shows how this model works.
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This is how your wearable device can save you money on your healthcare plan. This seems to be a little crude to start with, but it shows that wearable devices will have a much wider impact on our lives than we currently imagine. – Norbert Hildebrand