Theranos, AmeriHealth try to bring affordable diagnostics to Medicaid
The latest deal by diagnostics company Theranos suggests that the old school and new school can collaborate, and that the Blues might have a little something up their sleeves.
On the heels of a retail store partnership with Capital Blue Cross in Pennsylvania, Theranos is working with AmeriHealth, the Medicaid plan network owned in majority by Independence Blue Cross, to bring low-cost, pain-free blood testing to millions of Medicaid patients.
AmeriHealth Caritas members in 16 states and Washington D.C. will be able to access Theranos' "clinician-directed laboratory testing," which is also available direct to patients in Arizona and California Walgreen' stores. The Palo Alto-based company's technology can screen for hundreds of diseases and conditions with just a finger prick's worth of blood, with results in hours and prices pegged at no more than half of what Medicare pays.
"At Theranos, we believe access to actionable health information to protect our own health and that of those we love is a basic human right," said Elizabeth Holmes, founder and CEO of Theranos. "We are committed to bringing our groundbreaking technology to those individuals and places that have been forgotten and ignored for too long. Over 40 percent of lab test orders don't get filled because testing services are inconvenient and cost too much."
AmeriHealth Caritas, Holmes said, "has lived this mission of serving Medicaid for more than a quarter of a century." The Medicaid HMO was started by the Sisters of Mercy in Philadelphia in the 1980s, as a way to bring more primary care to Medicaid beneficiaries overusing the ER. In 1996, Independence Blue Cross took a joint stake in AmeriHealth, along with Mercy Health System, and then in 2011, the insurer became the majority owner, while BCBS of Michigan bought a minority stake. Today, the company manages Medicaid plans, behavioral health and pharmacy benefits for more than 6 million Americans.
"Our goal is to give the disadvantaged in our country the dignity and respect that comes with having a healthcare experience comparable to what most Americans enjoy--an experience based on an informed, consultative relationship with a healthcare professional," said Paul Tufano, CEO of AmeriHealth Caritas.
"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 healthcare decisions, as well as develop a comprehensive care plan for living a healthier life."
This is Theranos' first deal with a Medicaid HMO company and the second major one with an insurer--with more to come, if Holmes fulfills her vision of bringing affordable blood testing to the masses and ushering in a new era of preventive health.
Holmes started Theranos in 2003, leaving behind a microbiology degree at Stanford University, and the company is now valued at around $9 billion, based on its potential to upend the established laboratory testing market.
The company offers a wide spectrum of laboratory tests, using smaller blood samples drawn from a finger rather than a vein-drawn vial, and has its own branded Theranos Wellness Centers located in Arizona, California and Pennsylvania. The Cleveland Clinic is also working with Theranos to study the potential for its technology.
