Digital chronic care platform Omada is deepening its relationship with Blue Cross and Blue Shield of Minnesota (Blue Cross), inking a new deal that provides the insurer’s commercial plan members access to the startup’s Type 2 diabetes care platform.

As part of yesterday’s news, Blue Cross also announced it would be making a strategic investment in Omada; however, the actual value of this investment was not disclosed. 

Omada’s Type 2 Diabetes Digital Care program includes a combination of digital resources and a human diabetes coach. The tool also connects participants to peer networks and weekly interactive sessions.  

WHY IT MATTERS

More and more payers are offering digital tools to their members. Even life insurers are getting involved, with John Hancock recently unveiling a new wearable called Aspire to help its member with diabetes management. 

Livongo has also made strides working with payers. In October the company made a deal with the US government, giving federal employees insured by the government with Type 1 or Type 2 diabetes access to the digital program. 

There has generally been a lot of discussion and concern about how digital tools will be reimbursed, but these recent deals could mark an avenue. 

THE LARGER TREND 

Over the last year Omada has been on a raising spree. In June it announced a $73 million funding round, and then not six months later it announced yet another cash infusion, this time a strategic investment from Intermountain Ventures for an undisclosed amount. 

Last month the digital chronic care company announced that the Abbott’s FreeStyle Libre continuous glucose monitor would integrate with Omada’s health coaching platform. 

While Omada is best known for its diabetes management capabilities, it has also ventured into the mental health space. In January it entered a licensing agreement with Lantern Health, a digital mental health company that shut down its commercial operations in 2018, with plans to integrate Lantern’s software into its existing infrastructure. 

ON THE RECORD

“Blue Cross and Blue Shield of Minnesota has a strong record of providing support to people living with Type 2 diabetes, from their investments in awareness and prevention to the recent announcement that the insurer would cover insulin costs at no charge,” Omada Health cofounder and CEO Sean Duffy said in a statement. “Our work together goes back six years, and the decision to expand our focus beyond diabetes prevention to include a Type 2 diabetes management care program will provide an industry-leading solution for Minnesota-based employers, and a personalized solution for individuals with Type 2 diabetes.”