blockchain and workers compensation

Blockchain – A Potential Solution for the Woes of Workers Compensation Claims

Although blockchain has been described as new technology,  it is really nothing move that a combination of accepted concepts and methods. Blockchain is described as a type of distributed ledger technology (DLT) and has several qualities that make it worthy of consideration in the management of workers compensation claims. These qualities include:



Group Consensus


In short, blockchain technology allows for the sharing of data created by disparate systems among parties with either complementary or conflicting goals . The means of achieving this task will be reviewed in future posts.

In the field of healthcare , one of the primary concerns is the protected health information (PHI). Is blockchain HIPAA compliant? There is perhaps a better question.  Can blockchain systems conform to HIPAA compliance? Fortunately there are blockchain solutions that are have created a compliant  network.

As an Independent Medical Examiner,  on a day to day basis I see only a small portion of the Workers Compensation process. What I do see , however, is that there are many inefficiencies that interfere with the delivery of care to injured workers. In my world this includes difficulty in obtaining medical records , which currently are routed from provider to adjuster and eventually to my office. During my discussion with injured workers , frustration with delays for approvals of procedures , physical therapy,  and follow-up care is commonplace. Oftentimes this is due to delays in transmission of data between involved parties due to incomplete requests , payment delays , challenges to causal relationship, and workload challenges.

I believe that the use of blockchain technology may greatly improve the efficiency and quality of care for injured workers with resultant cost saving to insurers and improved outcomes for the workers .

In future posts , I will dive  deeper into the qualities of blockchain and how each quality can be of benefit to the process. Of course  I will also review the potential issues with this technology.

There is considerable work to be done , but the benefits can be  significant. During a recent webinar regarding blockchain in the insurance industry, Paul Carrol , editor in chief of  Insurance Thought Leadership noted “Never confuse a clear view with a short distance”

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