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Anthem, Aetna & IBM Partner To Build Healthcare Blockchain

Aetna, a subsidiary of CVS Health Corp, and several other health insurers disclosed their partnership with IBM Corp to build a blockchain based system that will bring down operating costs in the healthcare industry. The system to be built on blockchain technology will allow the industries to use a common database that will be maintained across a network of computers and process claims and settlements in addition to managing directories.

Blockchain, the disruptive technology underlying cryptocurrencies like Bitcoin, is progressively being used in a variety of sectors. Financial service providers also understand that distributed ledger technology can generate significant amount of savings. Health insurers Anthem Inc, Health Care Service Corp and the financial services company PNC Bank are other notable firms involved in the venture.

Chris Ward, an executive at PNC Bank’s treasury management unit said “Using this technology, we can remove friction, duplication, and administrative costs that continue to plague the industry.”

The announcement further states that new members, including tech firms and providers of healthcare, are anticipated to join the partnership in the months ahead. It can be remembered that a blockchain partnership between many healthcare companies, including health insurance providers Humana Inc. and United Healthcare Group, was established in April to study how the technology could be utilized to ensure the availability of latest information to healthcare providers in databases.

Aetna and Ascension, claiming to be the largest non- profit health system in the US, are also partners in the other venture.

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