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Blockchain Adoption for Trump’s Obamacare Overhaul?


President Donald Trump and Republicans in Congress are seeking to repeal and replace Obamacare with a new plan, dubbed the American Health Care Act (AHCA), which they deem to be simpler and more consumer friendly. Blockchain advocates are hoping bullish modifications to the law could provide a springboard for the adoption of distributed ledger tech as pressure mounts on Republicans to overhaul the Affordable Care Act (ACA.

While that goal remains elusive and details are subject to change, its core thesis is that healthcare should be driven by consumers to put downward pressure on costs – and that has many blockchain tech proponents eying the legislation as a potential catalyst for the upstart technology. This move would conceptually give consumers more leeway, freedom and responsibility to shop for their own insurance plans and health services instead of obtaining them through an intermediary. But after an initial failure to corral enough intra-party support, the bill was revived last week with the addition of several new amendments designed to bring more conservative Republican dissenters on board.

Avik Roy, president of the Foundation for Research on Equal Opportunity (FREOPP), argues that while the plan has its flaws, it could serve to generate demand for lower costs, more transparent pricing and greater consumer control over personal data.

These are items that blockchain could play an instrumental back-end role in delivering.

“Where there’s a unique opportunity for blockchain in healthcare is this idea that if patients in particular can have more control over their healthcare dollars, they’ll also have more of an incentive to have control over their healthcare data,” he told .


But it isn’t just about costs and control, it’s also about data warehousing.

While climbing healthcare costs grab the most attention, the data being produced by the industry has increased 44-fold since 2009, according to a recent report by Intel.

And further, the infrastructure on which that data is stored and transferred remains heavily siloed and incompatible with a more consumer-driven system, according to industry entrepreneurs like Micah Winkelspecht, founder and chief executive of Gem, a blockchain solutions company.

Winkelspecht said:

“This is leading to a breakdown in the existing system, because in healthcare your data doesn’t travel with you, it travels with the provider.”

By serving holding unique identifiers that can direct patients and providers to the location of individual data records, blockchain offers an alternative to existing efforts to remedy this problem, he said.


With numbers of that scale, reformers say that even modest implementation of new technologies like blockchain in healthcare administration and supply chains have the potential to reap hundreds of billions of dollars in savings.

Todaro of Hashed Health reckons that another way AHCA could facilitate blockchain in healthcare is by rethinking some of the complex regulations that surround payment and delivery systems, medical data and health insurance products.

“The patient really does not sit in the driver’s seat in terms of the provision of their own care. There’s not really a marketplace where you can compare prices and act like a consumer in your own best interest,” he said, adding:

“Getting rid of those kinds of regulations I think could be a springboard for a really robust kind of consumer-centric model, and I think that could be mediated very effectively by blockchain.”

For example, a more nuanced feature of the Obamacare law was a migration away from the traditional fee-for-service billing model toward fee-for-value schemes in which healthcare providers are compensated based on outcomes delivered rather than simply services rendered.

Barriers to entry

But to be truly effective, fee-for-value programs require a far more robust data infrastructure than currently exists.

Any tweaks to these rules that facilitate the flow and storage of such data could be a gateway for blockchain tech.

“Those kinds of programs are ideally suited for blockchain because they involve the transaction of information in as [close to] real time as possible among a wealth of intermediaries on a continuum of care. That’s difficult given the way current health IT stacks are structured,” said Todaro.

Gem’s Winkelspech said that, here, regulation gets in the way.

“The largest problem is that the regulations tend to be too prescriptive. Rather than defining what outcomes the government wants to achieve, they tend to pick winners and losers in technology and software,” he said.

Specifically, Winkelspech emphasized the 2009 Meaningful Use rule requiring the implementation of electronic health records – a regulation that many in the space are closely monitoring for potential modifications in the AHCA.

“[Hospitals] were highly incentivized to digitize health records at a time when there weren’t many health record systems. So, what it sort of did was it funneled all these companies to a few players, and those players have become quite large and quite powerful in the industry,” he said.

Todaro further said that while such highly prescriptive rules force hospitals out of their comfort zone, they tend to suck of the energy out of the room.

“Some of those specific provisions I think incentivize health systems to look for solutions like blockchain, but on the other hand it exhausts them,” he said, adding:

“We’ve talked to health system [providers] who say ‘We are busy enough implementing a multi-billion dollar, multi-year installation of a comprehensive electronic medical record system. We have got no appetite for exploring new technology even if it could be useful.'”

HedgeCulture  is the leader in blockchain news and a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. HedgeCulture is an independent operating subsidiary of HedgeCulture Group, which invests in cryptocurrencies and blockchain startups.

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