Apple will reportedly enter the health insurance business in 2024 in partnership with a major payer, Forbes reported Oct. 18.
CCS Insight's chief analyst predicts the tech giant will power the new offering through health data collected by Apple Watches, such as blood pressure, blood oxygen levels, ECG readings and body temperature. The analyst said having access to this data from the beginning gives the company an advantage toward entering the market and cutting costs.
Apple is already a flagship partner in John Hancock's Vitality program and UnitedHealthcare's commercial plans.
"They are in such a strong position to do this," Ben Wood, chief analyst at CCS Insight, told Forbes. "They've got a wealth of personal health data through Apple Watch. If they join some of the dots together they can become a very competitive health insurance player and that potentially is going to have quite an impact on the structure of the healthcare market in the U.S."
Apple’s services business currently brings in $20 billion a quarter — by 2030, software and services is expected to grow from a quarter to a third of the company's revenues.
"Nearly every day, I get notes from customers who share how a heart alert led to a life-saving appointment with the cardiologist," CEO Tim Cook said while discussing the Apple Watch in January. "We're still in the early innings with our health work, but every day, I am encouraged by our positive impact. My sense has always been that there's more here. We continue to kind of pull the string and see where it takes us."