California-based FMO Says Brokers Should Prepare for Wearable Tech to Reach Medicare

The Surprising Way Wearable Technology is Changing Insurance

SACRAMENTO, December 18th, 2019 – The emerging trend of wearable technology in the healthcare industry is reshaping how Medicare market brokers need to advise their clients. Rosamaria Marrujo, a recognized Medicare insurance leader and CEO of Trusted American Insurance Agency, stated: “In the past five years, we’ve seen the industry incorporate wearable technology into their policies that major carriers are now adopting.”[1]

These devices can monitor and track the common health concerns of Medicare beneficiaries and will incentivize healthier habits by tracking activity, sleep health, and eating habits, preventing potential health complications. Marrujo, who is also a Board Member of the Sacramento Association of Health Underwriters (SAHU), says, “These factors could theoretically bring down insurance premiums and therefore change how clients choose their Medicare policies.”

Despite a rising concern for the public in terms of privacy, regulations on wearable technologies are underdeveloped relative to the extent that they are expanding across the healthcare industry. The FDA does not classify wearables as medical devices, meaning the FD&C Act meant to protect against such devices will not regulate or require compliance. As of now the California Consumer Privacy Act is set to go into effect in January of 2020 and will allow people to stop companies from selling their information upon request. This act could start a movement towards stricter regulations for wearable tech in the health insurance market, which older clients may find favorable enough to seek out these benefits.

“Both the advancement in wearable tech and these new privacy changes are influencing how older clients are deciding on healthcare plans,” says Marrujo. “The bottom line is this trend is not stopping; it has already reached Medicare beneficiaries who have questions. The successful Medicare market broker will be able to anticipate this and explain the impact to their clients.”

Trusted American Insurance Agency is a National Marketing Organization (NMO) headquartered in Rocklin, CA. Trusted American provides a full range of insurance and financial services products across all 50 states for all major and niche carriers, with a specialty in the Senior Marketplace.

The Sacramento Association of Health Underwriters (SAHU) is a local chapter of the California Association (CAHU) and the National Association (NAHU). Our vision is that every American will have access to solutions for health, financial and retirement security, as well as the services of insurance professionals to assist in navigating these areas. SAHU’s mission is to improve our members’ ability to meet the health, financial and retirement security needs of all Americans through education, advocacy, and professional development.

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[1] John Hancock sells interactive life insurance policies where policyholders can earn discounts and rewards for reaching exercise goals. Fitbit has deals with Humana, Blue Cross Blue Shield, and UnitedHealthcare to offer devices and wellness management programs for the insured. Aetna recently opened a program (Attain) which pays off your Apple Watch as you reach personalized health goals each month.