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According to the U.S. Department of Commerce, in 2019, more than three-fourths of internet-using households were significantly concerned about online privacy, and almost half said these worries led them to hold back from various online activities. Privacy fears cut across generations, although more Americans aged 55-and-over reported concerns than those aged 18-34 (88% vs. 79%, respectively).
Since this USDoC survey was compiled, we have seen a further acceleration in the use of a wide variety of online services, driven in part by the pandemic. As remote work, health services, and education became the new normal, an additional 782 million people globally began using the internet between 2019-2021. Increasing commercial activity online means that companies are collecting more data than ever on customers’ needs, desires, and wishes.
The digitization of the economy has provided enormous benefits to society. Companies can better tailor and personalize their products based on individual needs. Certain services are only made possible because of the datasets that underpin them. Many services can be provided for free in exchange for the data that the user provides.
But capturing those gains in full does rely on citizens of all ages trusting that their privacy will be protected by companies and other organizations that they interact with online. What matters most is that companies are rigorous in their approach to protecting data and serious about consumer privacy.
At the same time, consumers often do not know how to determine or control the information they are sharing, and they want to be sure that no matter how they share personal information – online, over the phone, or in writing – that it will be protected.
Health insurance – and Medicare in particular – is one of the most personal products that consumers purchase, and for older Americans who want the utmost control over their personal health data, more steps need to be taken to nail down privacy and security. But when most Medicare plans are sold over the phone by under-trained salespeople, are privacy and data security ensured?
The answer is no.
Though it may seem like Medicare enrollment over the phone would eliminate any risk of data breaches, this method of plan distribution is significantly more dangerous than any online alternative. Salespeople who receive marketing incentives to push certain Medicare plans over the phone – usually only seasonal employees – want their sales calls to be as short as possible so they can move on to their next customer. Medicare beneficiaries are subsequently pressed to provide them with highly sensitive information, such as Social Security numbers, without given time to think twice or to verify the credentials of these salespeople. How secure is this information in a busy call center?
Despite the recent surges in internet use, phone scams rose by 22% in 2021, and Americans lost a total of $28 billion as a result. Enrolling in Medicare over the phone makes it difficult to discern whether incoming callers, claiming they work with Medicare, are legitimate. A phone scammer only needs the beneficiary’s 11-digit Medicare ID number to commit insurance fraud.
Privacy is not only at the core of what we do at Hella Health, but a foundational reason why we exist in the first place. Unlike other insurance entities, customers own every aspect of their health care data that is stored on our platform. Our privacy pledge is more comprehensive than what many are used to: we want to make sure that you know exactly how we use your data, and the ways you’re in control of it.
By allowing customers full ownership of their data, both our team and our customers are on the same page. Our platform benefits from nuanced customer data to offer the most personalized plan options, but the customer has full control of their privacy throughout the entire process.
Big data is only going to get bigger. Ensuring a transparent, secure process for protecting customers’ sensitive health information is necessary to redefine the Medicare enrollment process.
Author Bio: Rafal Walkiewicz is the CEO and founder of Hella Health, the first 100% digital platform built to educate and enroll customers in Medicare plans. Rafal has a track record as a thought leader in the insurance industry. His innovative thinking and expertise in insurtech trends set him apart as a disruptor in a sector where change is long overdue. You can read some interviews here: https://bit.ly/3bMhGhz and https://bit.ly/3vVjzj0
