How can blockchain technology help allay the financial fears of seniors?
Approaching retirement is often regarded as a happy time of life, looking ahead to when you can reap the rewards of all the hard work you’ve put in during the past 40+ years. But, a survey by PwC suggests it isn’t so positive for everyone. Some 50% of baby boomers – or those over the age of 50 – have just $100,000, or less, in their pension. That’s not enough to sustain an enjoyable lifestyle for long and is a sign of underinvestment, or a possible lack of interest in their pension over the years.
With so many having so little saved for retirement, it’s easy to understand that as that time of their life comes ever closer, they’re worried about many aspects of their future. Financial worries, affording to cope with the unexpected and the rising cost of healthcare, all feature among seniors’ biggest financial worries. But, can the emergence of blockchain into the healthcare sector, help ease some of those concerns?
Can Blockchain address the cost of healthcare
Blockchain technology, simply put, is a digital way to monitor all costs and processes associated with any given transaction or project. Its use in healthcare creates a completely transparent log of every single action, function, cost and outcome, associated with whichever hospital, provider or insurance company that uses it.
By having a digital log of everything associated with a doctor, hospital, pharmacy and patient, it should become easier to predict future healthcare trends, outcomes and costs. And, by understanding exactly what costs are likely for a healthcare provider to insurers, it should result in having fairer insurance premiums for each client, based on their most likely medical needs.
In some cases, of course, this won’t mean lower premiums for customers. Nor will it always mean every healthcare provider will get it right, 100% of the time. However, it should have the effect of helping all healthcare sector businesses and those paying for health insurance, understand exactly what money is going where, when and why.
There’s No Way to Plan for the Unexpected
Unfortunately, there’s no real way to plan for the unexpected. That’s a worry for seniors approaching retirement and for the healthcare sector.
The most sensible way to calm those worries – for retirees and healthcare business – is to put more money away for the unexpected, or to ensure there’s a reasonable savings pot, just in case. However, if the worst happens and that savings pot is used, what then?
Blockchain should be able to help the healthcare sector make plans to re-build it. But, many retirees don’t have the same luxury. The best answer, is to begin financial retirement planning as early as possible. Or, if you’re only a few years away from retirement, to take some financial advice, as to how you can maximize the growth potential of any pension savings you do have.
Being prepared is the best way to cope with the unexpected. That’s why Blockchain can work for healthcare and hopefully, help ensure provision and insurance costs are fair. Sometimes that will mean lower prices, sometimes not.
For the most part, though, it should help keep costs and processes transparent so reassure everyone that no-one is being overcharged and that the right healthcare will be administered when it’s needed.
Subscribe to stay up to date with the latest blockchain innovation in healthcare.
Brennan is a blockchain technical adviser in the healthcare sector and blockchain entrepreneur who has worked on developing proprietary concepts for both artificial intelligence and enterprise blockchain. He is a graduate of Rutgers University School of Health Professions where he earned a M.S. in biomedical informatics.