Will health clubs offer “health” insurance that helps us maintain good health and not just pay for illness?
Eric Durak, Medical Health and Fitness, Santa Barbara, CA
Jason Paul, Life Core Group, Phoenix, AZ
In 2024 Apple technology company will enter the health insurance market using the strength of their Apple watch data – which has now logged billions of data points for persons who exercise on their own, or in health clubs.
This data interfaces with some of the fitness equipment and other types of software programs that are within the health club sector, and the very nature of Apple wanting to get into health insurance begs a huge question – how will this play for the wellness industry?
Working with the Giants
My first thought was to approach Apple to joint venture – but after a very short time frame, I realized a few things: First, big companies such as Apple want to own everything. There is no piece of the pie for smaller companies. Second, if Apple is getting into health plans (like CVS and Rite Aid are getting into diagnostics) what will this mean for health clubs, naturopathic centers, and integrative medicine practitioners?
The answer may be in NOT working with Apple or CVS – because they will be entering into the same marketplace (traditional health insurance) with data on heart rate. Will they be able to predict those at risk of hypertension or heart attack from their Apple Watch data? No. It may be able to detect atrial fibrillization, but by then it may be too late (a heart attack is in process). Apple watch DOES track heart rate variability (HRV) which is important for training and overall heart health. This may be one of the important reasons why Apple wants to enter into the market – they may have SOME predictive analytics that general insurance companies (who go by data provided by doctors once or twice a year) don’t have.
Well – if Apple watch has some of these characteristics (which are quite minimal by assessment standards), then why can’t Health Clubs get into the health insurance market?? Here are a few issues that may be able to persuade larger health clubs about moving into the market in addition to providing a space for exercise and wellness:
#1 Assessments
Apple watch has their heart rate features. What do health clubs offer in direct competition:
· Body composition testing (identify obesity and training prescription)
· V02 assessment – direct measure of cardiovascular efficiency
· Strength assessment (1-5 RM max testing) – direct measure of physical strength
· Range of motion – flexibility testing of major joints
· Quality of Life assessments
· Apps and software programs to put all data (that will interface with Apple)
#2 Membership
Health clubs have an inherent element that insurance companies don’t have. They have an active membership base – and one that is selectively healthier than the general population. They cost less to insure, have less medical interventions, and want to be rewarded by paying less for insurance.
One of the key issues for health clubs – especially post Covid, is staying open, and retaining members. The larger health club chains (LA Fitness, Life Time Fitness, 24 Hour Fitness, Equinox, Club Corp, Planet Fitness, Town Sports International, Bay Club, and Orangetheory Fitness) have a lot at stake in the coming years as they want to retain membership base with (usually) higher membership dues, but want to have any type of added feature that would make their members value what they bring to the market – now and in the future. Some of these membership perks may include:
· Personal fitness training (general and special population classes)
· Nutrition consulting programs
· Massage therapy
· Tai Chi / relaxation / breathwork classes
· Physical therapy
· Silver Sneakers / Silver and Fit senior programs
#3 Changing the Structure and Future of Health Clubs
With the basis of testing and programs, health clubs still would like to retain their current members and include some of the 70% of Americans who do not currently have memberships to health clubs. How to entice both types of members?
What if – like Apple, health clubs got int the health insurance business? They have the members, and many would like to take part of some of the above-mentioned programs, but may not have the money. So enter a type of “wellness dollar” or the club industry. Now their monthly premium would pay for the cost of insurance and include those “wellness dollars” to improve their health over time.
EXAMPLE – say current premiums for a family of four are $1,200 per month. This comes directly off the top, and most families state that they really don’t GET anything from paying into the system (other than paying for a catastrophic issue if it arises).
With a health club sponsored program, that same family would see $400 of that $1,200 premium go to “well dollars” to be spend on programs such as training, nutrition, massage therapy, or a naturopathic physician visit.
#4 Enter the Lifecare Aviator Program
With the health club sponsored health plan comes a special feature - a personal aviator for every member. The health aviator will help members use their well dollars at the health club and with other desired health services. The insurance aviator will help members navigate the medical care system when necessary to treat illness or manage catastrophic challenges. So – members can retain the benefits of using a “traditional” insurance model for medical needs, while using the Aviator program to steer them to health programs through their “well dollars”. Everyone benefits.
For more information about the Aviator program, contact Jason Paul at the Life Core Group: 602-235-2800 ext. 13, or at jpaul@lifecoregroup.com. www.lifecoregroup.com.
Eric Durak is the President of Medical Health and Fitness. Contact him at edurak@medhealthfit.com, or 805-451-8072.
References
Watch for it! Apple to launch health insurance in 2024 | BenefitsPRO
Apple reportedly launching health insurance in 2024 (beckerspayer.com)
Heart health notifications on your Apple Watch - Apple Support
watchOS - Feature Availability - Apple
What Is Heart Rate Variability (HRV) on Apple Watch, and Why Does It Matter? (howtogeek.com)
Club Industry's Top 100 Health Clubs of 2020 | Club Industry
LifeCore - A health care services company. We can help. (lifecoregroup.com)
Sol, N. The Future of Retail Medicine. ACSM Health & Fitness Journal. 2007, July, 11(4):26-27. doi: 10.1249/01.FIT.0000281228.69385.03