Theranos Scores Successive Deals With Insurers Capital BlueCross, AmeriHealth Caritas
By Jof Enriquez,
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Consumer diagnostics provider Theranos has inked separate partnership deals with Pennsylvania insurer Capital BlueCross and nationwide Medicaid provider AmeriHealth Caritas. The agreements allow Theranos to offer its cheaper, efficient, and less invasive lab tests directly to insured consumers and underserved populations.
Under the deal with Capital BlueCross, Theranos will offer its full menu of tests to Capital BlueCross members in Central Pennsylvania through Capital BlueCross health and wellness stores, as well as through its own network of Theranos Wellness Centers across the region, according to a press release.
“We are proud to bring our laboratory testing services to the communities they serve and proud to partner with a company so dedicated to driving innovation and reducing costs throughout the health care system,” said Elizabeth Holmes, Theranos’ founder and CEO, in the announcement.
Capital BlueCross says that, over the past several years, it has reviewed Theranos' technology and processes, and has been working together with the diagnostics company on this partnership agreement.
“As an insurance company, it is important for us to partner with companies that have the commitment not only to the highest standards, but also to constant innovation. We found Theranos to be the best lab for our members – they’ve been able to implement their unmatched technology and processes to provide access to accurate, convenient, and low-cost lab testing services,” said Gary St. Hilaire, CEO of Capital BlueCross, in the release.
Capital BlueCross cites the U.S. Food and Drug Administration's recent decision to grant Theranos its first clearance as an affirmation of their decision to partner with Theranos.
Separately, under the agreement with AmeriHealth Caritas, Theranos will offer its diagnostic tests to Medicaid members of the managed care organization in 16 states and the District of Columbia. It is Theranos' first partnership with a Medicaid-managed care organization.
"Our hope is that, equipped with reliable, real-time information gained through Theranos' innovative technology and accessible model, our members will be more likely to engage with a physician and make timely health care decisions, as well as develop a comprehensive care plan for living a healthier life. By complementing our current provider resources, we are hoping to increase the number of members who are going to get direction on improving their health outcomes," said Paul A. Tufano, chairman and CEO of AmeriHealth Caritas, in a statement.
Theranos claims its needle-free, finger-stick technology and lab processes require only drops of blood to detect up to 30 conditions. Tests are priced lower than what more established labs charge. For example, Theranos charges $2.99 for a cholesterol test and $35 for a fertility panel. Results can be obtained by the consumer in a matter of hours instead of days.
“Over 40 percent of lab test orders don’t get filled because testing services are inconvenient and cost too much. Improved access is the best way to help save lives, because access to information puts the focus on earlier detection and prevention instead of diagnosis and treatment,” Holmes added in the statement.
In order to reach more consumers, Theranos has an agreement in place with Walgreens wherein tests are offered in participating Walgreen stores in Palo Alto and Phoenix. Eventually, Walgreens plans to offer the tests in selected outlets nationwide.
Theranos' latest partnerships with insurance providers will further extend its reach. Theranos and its partners have congruent interests at a time when healthcare is moving from a traditionally curative model toward a more preventive dimension. By offering affordable, efficient tests, Theranos can tap the consumer-driven diagnostics market, while insurers save costs through lesser utilization.
As pointed out in The Morning Call, Theranos "offers more than 150 diagnostic tests for under $10, which is less than the co-pay required by even many traditional insurance plans. In other words, where Theranos is an option, people might be better off not using their insurance."