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Information Technology with its constant advancement and power of the ‘cloud’ offers payers the opportunity to successfully reduce costs. Healthcare IT companies are using cloud computing to host client applications, provide data management services etc.Cloud computing can be divided into three parts in terms of service delivery models Public Cloud, Private Cloud & Hybrid Cloud.Public cloud is a mode where the cloud host runs a common space that is shared among multiple clients and is allotted on-demand based on particular needs for specified time durations. An advanced version of the public cloud is the ‘community cloud’ that limits access to a select number of clients. The public cloud is the most cost-effective solution available to users but is open to concerns about security, privacy, integrity and accessibility of data.Private cloud is a secure version of the public cloud. Clients are allotted and granted access to an isolated cloud wherein it is up to the users to implement their own cloud or unload the data to a host provided virtual private space. The private cloud is relatively expensive and less flexible as compared to public clouds.A hybrid cloud space is created by amalgamating the external cloud services with clients’ internal resources. The process is highly complex and requires careful implementation.With numerous healthcare IT companies operating in the healthcare market offering sophisticated cloud-based solutions, cloud computing as a whole has started gather interest from the health payers. Despite the slowly growing interest, there is still a lack of awareness about the technology that is acting as a deterrent to widespread cloud computing technology adoption. While some healthcare leaders have some information on how cloud can help in cost-savings the technology itself is like a black hole for most insurers as they are still unfamiliar with the cloud computing associated risks, benefits & responsible management.Healthcare IT companies are assisting and informing health payers and carriers on the benefits of switching to cloud technologies and are helping insurers become familiar with cloud platform through slow adoption of public cloud-based services such as claims processing, data & process management etc. However, there are several looming concerns about public clouds such as security of data, robustness and flexibility of the interface to adapt to increasing performance related demands.Many healthcare IT companies today offer private cloud services for hosting and managing clients’ data and services. Some healthcare payers have tentatively switched to cloud based platforms to avail of the cost-saving benefits and are hoping to limit their healthcare costs.