You Could Be Wearing The Best Thing For Your Health: How The Inclusion of Wearable Devices in Health Plans Could Help Reduce Healthcare Costs

This article explores the potential of wearable devices in reducing healthcare costs and improving patient outcomes.  It examines the advantages of including wearable technology as covered benefits in health plans, with support from relevant research results, case studies, and statistical data. Wearable technology significantly reduces healthcare costs through real-time data collection, promotion of preventive care, and improved patient involvement. Rising healthcare costs pose a significant challenge for consumers and the healthcare industry calling for innovative approaches to address cost containment while improving patient outcomes. Wearable devices have emerged as a promising solution to achieve these dual objectives. The potential cost-savings offered by wearable technology ultimately will foster the development of a more resilient and effective healthcare system and improved health practices by all individuals.

Wearable devices are electronic devices worn on the body as personal accessories or clothing. These devices collect and transmit data about various aspects of an individual’s health and physical activity. This active data transmission typically incorporates sensors, processors, and wireless connectivity to capture and transmit data to other devices or platforms for analysis and interpretation without any significant user actions. This article summarizes cost savings and fitness benefits impacting individuals, healthcare organizations, and society.

Benefits of Wearable Devices in Healthcare

Remote Monitoring and Real-Time Data Collection

Wearable technology allows continuous remote monitoring of vital signs, physical activity, sleep habits, and other health-related data. Users can utilize devices that passively gather various health metrics and identify potential interventions. Examples include fitness trackers, smartwatches, and health sensors. Healthcare professionals can now spot potential health risks early, take quick action, and save expensive hospital stays thanks to real-time data collection.

Promoting Preventive Care

Wearable technology encourages people to lead healthier lifestyles and take charge of their health, which promotes preventive care. Wearable technology encourages increased physical activity, better sleep patterns, and better self-management of chronic illnesses by tracking daily activity levels, sleep quality, and heart rate, ultimately lowering the need for costly medical interventions. Research published in the Journal of Medical Internet Research suggests that wearable health monitoring and preventative care technology might result in yearly per-person savings of $500 to $1,000.

Cost Reduction through Wearable Device Implementation

Reduction in Hospital Readmissions

A study published in Nature (2021) provided this insight, “Smart wearable devices in cardiovascular care demonstrated that the use of wearable devices for remote patient monitoring resulted in a 43% lower likelihood of hospital readmission among patients with type I MI (coronary artery disease).” The continuous fitness monitoring and timely health interventions facilitated by wearable devices helped prevent complications and minimize the need for hospitalization, leading to substantial cost savings of $6,000 per patient.

Improved Medication Adherence

Research by Patel et al. (2019) demonstrated that wearable devices providing medication reminders and adherence tracking capabilities improved medication utilization rates among patients with chronic conditions. Wearable technology can prevent illness exacerbations and lower healthcare consumption, which lowers the cost of hospital stays and ER visits. Reminders and activity trackers ensure that medication usage consistency promotes overall health impacts.

Enhanced Chronic Disease Management

Wearables provide real-time patient-centered health data, which can help inform self-management decision-making. According to a study, using wearable technology to manage chronic conditions like diabetes and hypertension led to better health outcomes and lower medical expenses. Constant monitoring of vital signs, activity levels, and other pertinent health data enabled early diagnosis of irregularities and prompt interventions, improving illness management and reducing dependency on expensive medical interventions.

Personalized Treatment and Care

Tyler’s (2020) research brought attention to the potential of wearable technology to deliver individualized care and treatment. Healthcare professionals can learn more about patients’ health statuses, spot patterns, and modify treatment regimens by combining wearable device data with electronic health records and using advanced analytics. This individualized strategy can avoid pointless treatments, maximize healthcare resources, and lower healthcare expenses while identifying patterns and methodologies with broad benefits.

Prevention and Early Intervention

Studies have shown that wearable devices that promote preventive care through activity tracking and health monitoring can lead to significant cost savings. A research study by Rovniak et al. (2016) demonstrated that individuals who consistently used wearable devices to track their physical activity and receive personalized feedback had lower healthcare costs than those who did not use such devices. The preventive measures enabled by wearable devices help individuals maintain healthier lifestyles, reducing the incidence of chronic diseases and associated healthcare expenses.


Wearable technology has the potential to lower healthcare expenditures while also enhancing patient outcomes significantly. Wearable technologies enable people to actively participate in their health management, improving health by collecting real-time data, supporting preventive care, and increasing patient involvement.

Kulbir Singh, Elevance Health
Health Information Manager at | + posts

Kulbir Singh has 18 years of experience in Information Technology as an analytics and data science professional. He possesses a wealth of knowledge and skills in data analysis, statistical modeling, and machine learning techniques. In addition to deep technical expertise, Kulbir has extensive experience working with data in various industries, including finance, healthcare, and retail. He has a  keen ability to identify business problems and use data to develop insights and solutions, and that forms the foundation for this article in Workforce Solutions.

In addition to his professional work, Singh is active in multiple IT communities, contributes as an active blogger and educator, and is a member of the judging committee member for Globee awards.

Kulbir has completed his Master's in Computer Science in Data Science from the University of Illinois at Urbana Champaign.

Related Articles

Join the world’s largest community of HR information management professionals.

Scroll to Top