Dive Brief:
- Livongo, a provider of technology to help people manage diabetes and other chronic health conditions, said Tuesday it received CMS approval to become an enrolled provider for Medicare Advantage members.
- The digital health startup said its diabetes program will be available in June to Medicare Advantage members enrolled in insurer Cambia Health Solutions' regional health plans. Cambia has more than 2 million members in its regional health plans in Washington, Oregon, Idaho and Utah.
- With the addition of Medicare Advantage patients, Livongo and Cambia will extend a partnership that currently makes Livongo's personalized healthcare programs available to eligible members of Cambia's regional health plans.
Dive Insight:
By tapping into the popular Medicare Advantage market, Livongo gains access to a hot spot of growth in the health insurance industry. Increases in Medicare Advantage enrollment, fueled by an aging population, are expected to continue this year. A PwC report says the growing population of U.S. consumers 65 and older are tech-savvy and increasingly willing to use digital devices at home to manage their health.
And payers are looking for new opportunities with flexible supplemental benefits. CMS last year finalized a rule allowing Medicare Advantage plans additional flexibility in offering supplemental benefits such as meal delivery and transportation assistance to beneficiaries. The benefits can be tailored to specific medical problems such as chronic conditions.
Livongo has been expanding its platforms beyond diabetes management to include hypertension, weight management, diabetes prevention and behavioral health. Founded in 2014, the Mountain View, California-based company counts 650 organizations among its customers, including many large self-insured employers, health plans and pharmacy benefit managers.
The company has also teamed up with Abbott to offer the device maker's FreeStyle Libre Pro System to Livongo members with diabetes. The sensor, which attaches to the upper arm, reads glucose levels every 15 minutes to form a glycemic profile of the patient, including patterns and trends.
Livongo and Cambia last year announced plans to collaborate initially on a diabetes program for Cambia members, followed by hypertension and integrated behavioral health offerings. Cambia and Mosaic Health Solutions jointly own a digital health investment company called Echo Health Ventures, which is a Livongo backer. Livongo has raised $240 million in six funding rounds.
Now, Livongo has reportedly hired a group of investment banks to ready the company for an initial public offering as soon as the third quarter. The IPO is expected to value the company at more than $1 billion according to The Wall Street Journal, which cited sources familiar with the dealings.
