Last week, Forbes published a piece in which an industry analyst predicted that tech giant Apple would enter the health insurance business in 2024.
Forbes spoke with Ben Wood, a chief analyst at CSS Insight. “They are in a strong position to do this,” Wood said. “They’ve got a wealth of personal health data through Apple Watch. If they join some dots they can become a competitive health insurance player, and that potentially is going to have quite an impact on the structure of the healthcare market in the United States.”
Although the idea of moving into the healthcare insurance space was likely not part of Apple’s short-term plan when launching the Apple Watch, it’s probable that Apple has at least considered the advantages of entering the lucrative marketplace.
Plus, now that Apple has access to health data collected via the Apple Watch—including blood pressure, blood oxygen levels, body temperature, and more—this could give the company a competitive edge and cut costs if they did decide to enter the health insurance world.
At the time of publication, Apple has neither confirmed nor denied the prediction; however, analysts say that a shift into health insurance could enhance Apple’s services business, which is already generating a whopping $20 billion per quarter. According to BenefitsPRO, analysts also believe that a third of Apple’s revenue will come from software and services by 2030.
Looking for more exclusive content? Check out what’s new on the Mployer Advisor blog, and check out the latest episode of “This Week in Benefits.”
.webp)
.svg){kind=small}
.svg){kind=small}
%201.svg){kind=small}
