The Cigna Group Ventures and Omada Health Partnership Drives Immense Growth and Improved Health.
Omada Health: A Digital Tool for Chronic Condition Management
Diabetes is an extremely prevalent chronic condition in the United States, affecting 1 in 10 Americans, and one of the most expensive in terms of medical spending and lost productivity. It’s a condition that’s best treated through prevention and day-to-day care, but exists in a world where most interactions with a health care provider take place every six months.
Omada Health was founded in 2011 to make daily care and management of conditions like diabetes possible through a virtual-first approach. Omada’s virtual care platform helps members make lasting changes to improve their health and reduce care costs for organizations.
Turning a Pilot Program into a Strategic Partnership.
Omada began its engagement with Cigna in 2015, working together on a pilot program that introduced Omada’s prediabetes solution to a select group of Cigna’s administrative services only (ASO) clients. The overwhelmingly strong engagement and positive feedback from clients led Cigna to consider expanding its partnership with Omada to offer services to other segments of the market, opening the doors for a deeper strategic partnership and opportunities for financial investment to accelerate growth.
For Omada, alignment to its mission of helping people across the country improve their lasting health was crucial. “Cigna was a natural fit with its mission to improve the health, well-being, and peace of mind of those it serves,” said Craig Cimini, Head of Cigna Ventures. With the joint goal of helping people prevent serious health conditions, Cigna Ventures led Omada’s series C1 fundraising in May of 2017 and subsequently participated in rounds D and E.
I’ve always felt that Cigna, holistically, has an incredible culture and that’s shown through with Cigna Ventures. I felt completely convinced that they’d be a great capital partner as well as a customer and strategic partner.– Sean Duffy Co-founder and CEO, Omada Health
Two-Year Pilot Program Results
- On average, participants experienced sustained weight loss of 3.5% to 5% of their body weight beyond one yeara,b
- Improved health resulted in $424 to $972 in net medical cost savings over two years compared to non-participants, equating to a return on investment ranging from 1.5 to 2:1 for employersa,b
- 83% of participants would recommend the program to a frienda
Sources: (a) 2016 Omada Diabetes Prevention Program Study. Full year. (b) Omada Pilot Program Results
Unlocking Opportunity in Chronic Condition Care
Following The Cigna Group Ventures’ investment in Omada, Cigna expanded the pilot program into a full Diabetes Prevention Program (DPP) powered by Omada and its prediabetes solution. The integrated offering provides a turnkey solution for employers that is embedded within a broader suite of health care offerings. For customers, the virtual care program empowers them to take charge of their health, providing support to lose weight and keep it off long-term, build strategies for a healthy lifestyle, reduce risks of developing Type 2 diabetes and heart disease, and improve overall health and well-being. In a 2020 claims study, DPP led to an average return on investment of 1.7:1 in year one and 2.7:1 through year two for employers, and helped customers lose 4.1% of body weight through year two.1
Additionally, Omada has significantly expanded its coverage into new care areas including Type 1 and Type 2 diabetes, hypertension, and musculoskeletal programs – all of which have been implemented by parts of Cigna’s business including Evernorth and Express Scripts. “The The Cigna Group Ventures team has been a really good thought partner to think about the business needs, who to talk with, and how to navigate a complex organization like Cigna,” said Sean Duffy, Co-founder and CEO, Omada Health. During the partnership with The Cigna Group Ventures, Omada’s enrolled membership has skyrocketed from around 100,000 members to now over 750,000. It’s also expanded its client base, working with more than 1,700 employers and dozens of health plans and their fully insured lines. Omada has also seen growth internally, increasing from about 100 employees to over 700 presently.
1. Cigna Diabetes Prevention Program with Omada claims study, October 2020, year 1 follow up data = 15,780 participants from 551 clients and year 2 follow up data = 4,253 participants from 413 clients. Individual client and participant results may vary depending on individual health status at the start of the program and activity throughout the program. Results are not guarantee
We can’t stop until tomorrow’s epidemiologists notice a bend in the curve and that’s when we know we’ve had impact. I know we’ll get there, and Cigna shares that hunger.– Sean Duffy Co-founder and CEO, Omada Health
Continuing to Grow and Take on New Challenges Together
Both Omada and The Cigna Group Ventures have been impacted deeply by the partnership of five years. Omada was The Cigna Group Ventures’ first investment before it was formally launched in 2018. “The partnership with Omada was the formation of what became our model for The Cigna Group Ventures. It accelerated not only the strategic partnership, but where we’ve gone strategically, too,” said Rachel Anderson, Principal, Portfolio Partnerships, The Cigna Group Ventures.
Omada has grown tremendously in its services and client base, and in its relationship with Cigna. In 2021, Omada was named the preferred provider for Type 1 and Type 2 diabetes, hypertension and prediabetes solutions in the Digital Health Formulary from Evernorth, Cigna’s health services segment. Omada is also a listed provider under musculoskeletal care in the Digital Health Formulary, a clinically based, expertly evaluated platform of digital health solutions. “It’s a really proud moment for Omada. I think it’s just the beginning for what impact it can have on our mission and on the business for both parties,” Duffy said.
While Omada has enrolled over 750,000 patients since The Cigna Group Ventures invested, there’s still work to be done with millions of Americans being diagnosed with diabetes each year. As the partnership continues, Omada and Cigna’s collective goals get bigger each year to keep pushing to accomplish change in chronic condition care.