Jon Otterstatter, Preventice: Cardiac wearables will slash costs for insurers
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Jon Otterstatter, President & Chief Strategy Officer, CEO, Preventice Solutions Group, gave a presentation on "Monitoring and diagnosis: Wearable sensors in cardiac care" at the Health monitoring: Making sense of sensors conference at the Swiss Re Centre for Global Dialogue. The event brought cutting edge medical, health and fitness wearables producers and platforms together with Swiss Re's clients and experts, to examine how wearable technology will impact consumers and insurers.
Click here to find out more about the event.
Read a text version of the video below:
"We produce a product that's named BodyGuardian. It's an ECG product, single lead, single channel ECG that helps the patient and the physician diagnose arrhythmias, heart issues. The idea was that there had to be a better way for the patient to be monitored in a less intrusive way. Rather than having wires all over the body, a single adhesive strip that has a controlled unit in it was able to be created with our collaboration with Mayo Clinic.
The cost reduction is an interesting question, and really in most prescriptions when a physician prescribes a device for monitoring an event, there's a reimbursement that comes along with that. Those reimbursement codes can go through a continual pressure from a society or government or Medicare, Medicaid pays for that the actual action, the event of recording. We call them studies. That cost curve will continue to decrease, and we've seen an around 3% to 5% annual reduction, and it's really not that the value isn't being produced. It's the dynamics of health in a given population, baby boomers needing monitoring, et cetera. There's a continual effort to do better with the outcomes, and then some of the insurance companies, the Medicare, Medicaid, they reduce the reimbursement on their own every year.
I think the insurance industry has a major opportunity. I used an example earlier. If I'm buying a life insurance policy and I have an EKG at the beginning of that policy and then I never have one again in the history of the term of that policy, the insurance agency that issued that and covers the risk on that policy could mandate or offer some opportunities where I could get cardiac monitoring on a more frequent interval. That of course would be interesting to me for a lower premium, and it would provide value to the insurance company because they would then have more insight on the individual that they're insuring."