Home Health Care Omada Health lands first payer to deploy its Type 2 diabetes solution

Omada Health lands first payer to deploy its Type 2 diabetes solution


Omada Health has achieved what many digital health companies crave: continuous support from payers providing its product as a covered benefit.

On Wednesday, the San Francisco company that began life as a digital diabetes prevention solution for people at risk of developing type 2 diabetes, announced that Blue Cross Blue Shield of Minnesota would provide its digital diabetes management program for type 2 diabetes patients to self-insured employers that are customers of the health plan.  The product will be available starting in January.

“Omada’s program for type 2 Diabetes provides an experience unlike anything else offered in health care today,” said Craig Samitt, president and CEO of BCBS of Minnesota. “I am very pleased that so many of our members can now have access to a personalized program with professional coaching from Certified Diabetes Educators wherever and whenever they need it.”

Omada has several health plans that provide its diabetes prevention product as a covered benefit to self-insured and fully-insured employers, including those employers that are customers of BCBS of Minnesota. And there are plans to expand the type 2 diabetes management program to BCBS of Minnesota’s fully-insured customers, confirmed Sean Duffy, in response to emailed questions forwarded by a company representative.

Omada Health allows people to track their glucose

BCBS of Minnesota also invested an undisclosed amount in the San Francisco digital therapeutics company with which it has had a relationship since 2013. Earlier this year, Omada announced that it has raised $73 million. All in, Omada Health has raised $220 million to date.

“BCBSMN also becomes the sixth Omada commercial partner to decide to invest in the company after seeing Omada’s products, and operations, first-hand,” Duffy said. “This type of investment is a huge vote of confidence in our approach to digital care, and an endorsement of our program’s ability to engage and empower people while producing clinical and economic returns for employers.”

Duffy said that the Minnesota health plan has 2 million covered lives across their self-insured book of business. But he did not specify how many were or could be managing type 2 diabetes and so stood to benefit from this program.

Interestingly, while Omada has found traction with employers, private payers and health systems, including Intermountain Healthcare, neither the diabetes prevention program product nor the type 2 diabetes prevention program has the blessing of Medicare. This despite the fact that the Centers for Diseases Control has fully recognized Omada’s virtual diabetes prevention program.

“CMS is currently evaluating several models that might provide reimbursement for a program like Omada’s,” Duffy said.

Photo: filipefrazao, Getty Images







“Omada’s proven expertise in delivering a meaningful digital care experience aligns with our focus in fostering evolution and innovation across the health care system,” said Dr. Craig Samitt, president and CEO of Blue Cross and Blue Shield of Minnesota


Earlier this year, Omada announced a $73 million round of investment led by Wellington Management, bringing the company’s total investment to more than $200 million. Omada has published 11 peer-reviewed studies and is currently running the largest-ever randomized controlled trial of a digital diabetes prevention program. The company’s approach is proven to deliver lasting clinical outcomes, as well as significant medical cost savings, across diverse populations. Omada’s program drives unprecedented levels of meaningful engagement by participants, directly leading to sustained improvements in health.

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