Digital transformation is fundamentally reshaping healthcare financing globally. This chapter comprehensively examines this evolution, focusing on opportunities within the Indian landscape while drawing upon key global trends. It analyses the confluence of innovative digital technologies—including artificial intelligence (AI) and machine learning (ML) for predictive analytics and risk scoring, sophisticated data analytics, health data exchange platforms, centralized data repositories, blockchain for secure data transactions, and telemedicine platforms—and their strategic application in optimizing insurance processes, enhancing risk assessment, fortifying fraud detection, and improving patient engagement. This chapter explores the foundational role of health data, dissecting its diverse types and forms, elucidating data flow, and emphasizing data security measures. It details how these technologies leverage health data across various functions, ranging from claims processing and fraud prevention to personalized care and value-based contracting. Through diverse case studies and national initiatives, this chapter provides a nuanced understanding of the transformative potential and inherent challenges of digitizing healthcare financing ecosystems. It underscores the necessity of balancing technological innovation, ethical considerations, and infrastructural development to advance efficient, secure, and equitable healthcare financing in India.