{"id":25261,"date":"2017-11-15T19:34:30","date_gmt":"2017-11-16T00:34:30","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/free-apple-watch-and-other-ways-aetna-is-embracing-digitization\/"},"modified":"2017-12-01T17:51:57","modified_gmt":"2017-12-01T22:51:57","slug":"free-apple-watch-and-other-ways-aetna-is-embracing-digitization","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/free-apple-watch-and-other-ways-aetna-is-embracing-digitization\/","title":{"rendered":"Free Apple Watch! and other ways Aetna is embracing digitization"},"content":{"rendered":"

The health insurance industry can be thought of as a marketplace: on one side, customers pay for coverage of healthcare costs and seek a variety of providers. On the other side, providers look to the marketplace for patient volume and accept a discounted rate for services. Payers intermediate between the two, bearing risk and providing liquidity.[1]<\/a> \u00a0Thus, for payers, the supply chain can be conceived of as streams of services and payments.<\/p>\n

Figure 1. Illustration of payer supply chain<\/p>\n

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Source: Author\u2019s diagram based on Bardey and Rochet, \u201cCompetition between HMO and PPO,\u201d Journal of Economics and Management Strategy, 2010. <\/em><\/p>\n

In the health insurance market, supply chain efficiencies are realized by increasing visibility into future demand (underwriting advantages) and\/or reducing coverage costs. Digitization will reward payers who can deploy technologies to increase supply chain efficiency.[2]<\/a> Aetna, the third-largest health insurance payer in the U.S., has embraced digitization in order to realize supply chain benefits for patients, providers, and shareholders. Aetna has created current, near-term, and medium-term partnerships to encourage development and adoption of digital initiatives, including:<\/p>\n