OTI Receives Ongoing Monthly License Fee for Every MediSmart Card in Issue
According to Kenya's Business Daily, Fraud in the Medical Insurance Sector Caused Revenue Losses Estimated at 40 Percent of Total Claims
ISELIN, N.J., Feb. 28, 2011 (GLOBE NEWSWIRE) -- On Track Innovations Ltd. (OTI) (Nasdaq:OTIV), a global leader in contactless smart card solutions, has received an additional order for 100,000 MediSmart TM healthcare biometric ID cards for use by Kenyan-based Smart Applications International Ltd. (SMART), a provider of technology driven secure healthcare solutions. To date, some 200,000 MediSmart cards have already been issued by SMART and more than 2,000 contactless smart card readers and other device points of service have been deployed at hospitals, pharmacies and general practitioner sites across Kenya. One of the main goals of MediSmart is reducing and eliminating fraud, which according to the Kenya's Business Daily (dated January 31, 2011) estimates that fraud in the medical insurance sector causes revenue losses of 40 percent of total claims. It causes higher insurance rates at a time when providers are scrambling for more business and growing loss in the medical insurance industry. SMART's objective is to support improved profitable growth of the healthcare industry by reduced and discouraged would be fraudulent medical claims through the biometrically controlled MediSmart ID card. "Out of an estimated work force of 12 million people, less than a million Kenyans actually have private medical insurance coverage, which represents a tremendous growth opportunity for the healthcare insurance industry. However this opportunity will only be a reality when solutions like the one provided by SMART and OTI become the route to market. It is this growing untapped opportunity that remains our motivation," said Mrs. Pauline Muriuki, CEO of SMART. "We deliver the most sophisticated and accurate healthcare biometric patient ID and medical record system with benefits to many sectors of Kenyan society, specifically, insurance companies will benefit since they can focus their resources on legitimate policy holders and lower the cost of medical fraud and waste."