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In the U.S approximately 140,000 hospital patients die every year from adverse drug reactions because of incomplete or incorrect patient information. Smart cards (also called chip cards or smart integrated circuit cards) can contribute to a better health care system because of their capacity to securely store a patient's essential personal info: medical history, blood type, allergies, physician contact information, etc.

Smart card technology will enable a patient to review their medical records at home over the Internet. Medical professionals will be able to access a patient's complete medical history as well as recent records. Doctors will be able to submit online claims for treatment with transactions secured by smart cards.

Moreover, smart cards can be used in conjunction with a related card held by a clinic or doctor: combined they would provide access to more extensive data over the Internet, secured by sophisticated cryptographic procedures and regulated by HIPAA standards.

Statistics show that administration accounts for about 30 cents of every dollar spent on health care in the United States. Labor costs of data entry and claims adjudication can be reduced considerably with smart cards while increasing both, data security and data quality. Besides helping health insurance providers save costs by eliminating paper work, smart cards reduce losses by preventing srvices to unauthorized individuals.

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