Issue 032

Welcome back to E&O Wednesdays, the enrollment-focused digital health newsletter from Exits & Outcomes — for paying subscribers only. This every-other-Wednesday issue digs into digital health companies that sell to self-insured employers as well as others that rely on enrollment-based distribution for their digital health programs.

 E&O Wednesdays: Employers

A few quick notes…

• As I predicted nearly a month ago in Issue 048 of E&O Mondays: Omada Health did raise a big new round of funding led by Fidelity last week. The $192 million Series E also raised Omada’s valuation to north of $1 billion. More on Omada in one of the top stories below.
• I checked in on changes to Boeing’s digital health benefits stack since I first wrote about it back in January 2021. I might have missed it at the time too, but Boeing currently offers Ovia Health digital offerings for fertility, pregnancy, and parenting. It also offers two digital fitness programs that I didn’t mention last time: LesMills and BurnAlong. One offering that is new for 2022: WINFertility. While some digital health offerings I wrote about back in Issue 005 are only available to Boeing employees on certain medical plans.
• Vida Health has commenced its annual targeted Facebook ad push to enroll various Centene plan members and employees at clients like Prudential, Taylor, Bass Pro Shops, and more. They begin this marketing effort in February each year.
• One more thing… You know this already, but I have to hand it to Teladoc’s PR and marketing team. Timing the cute Amazon “Alexa, I want to talk to a doctor” feature announcement with the much more serious news that the company could take a sizable loss on its $14 billion Livongo acquisition — between $800 million and $4 billion — was masterful.

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Updates on Omada Health’s customer count, cumulative members, lobbying efforts, and more

As part of its big funding announcement (mentioned above), Omada also revealed a handful of updated metrics that show how quickly its grown in recent years. I compiled the new numbers with the ones E&O has reported previously below: Omada grew its number of customers from 360 in 2018 to 862 in 2019 to more than 1,300 in 2020. The company said it now has more than 1,700 customers. That’s about 400 new customers each year?

Omada Health’s multi-product agreements

As of the first quarter of 2020, Omada said only 5 percent of its contracts with customers included more than one of its programs, but by the fourth quarter of 2020 multi-product deals accounted for 22 percent of customer agreements. The company said increasing this number was a key focus for 2020 as it reduces CAC. In its Series E funding announcement, Omada didn’t share a current overall percent of deals number for multi-product agreements, but it did say that 32 percent of all deals inked in 2021 were multi-product agreements. Using the numbers above, if we assume that was 32 percent of 400 deals, it comes to 128 deals in 2021. Add that to the 286 multi-product agreements it had at the end of 2020 (22 percent of 1,300) and we can estimate the company has a total of 414 multi-product agreements in place or around 24 percent of total deals (414 divided by 1,700). (Since that percentage is lower than 32 percent, you can see why the company would share the 2021 figure instead of the total current figure.)

Cumulative participants in Omada programs hit 550,000

When I wrote The Omada Health Report back in January 2020, Omada had just crossed the 300,000 cumulative participants mark after adding about 100,000 in 2019. It hit 500,000 some time in mid-2021 — so about 18 months later. Now the company is up over 550,000 all-time participants. It might be accelerating a little but it looks like Omada adds a little more than 100,000 new participants each year over the past couple of years. Growth must come from multi-product participants and/or higher pricing then?

Omada Health has its sights set on Medicare reimbursement once again

This wasn’t mentioned in the funding release, but it’s worth noting that Omada is once again courting Congress and CMS about reimbursing for digital versions of DPP. After pausing its own concerted lobbyist efforts in DC at the end of 2017 following its Medicare reimbursement debacle for digital DPP, Omada hired a new lobbyist firm in Q2 2021 to push for Medicare reimbursement of DPP. While its 2021 lobbying efforts only amounted to a fraction ($70,000) of what it spent in 2017 ($215,000), the return to Washington shows that the company believes the Prevent Diabetes bill has a chance.

New E&O tracker for big employer digital health benefits stacks

Every other week since late 2020 I’ve dug into the benefits stacks of big employers to figure out which digital health companies count them as a customer. Many of these relationships are public but the majority of them probably never make it onto pitch decks widely available to the general public. After writing about E&O’s benefits stack white whale — Comcast — in Issue 031 of this newsletter, I figured it was time to put together a tracker that collects all of the past digital health benefits I’ve unearthed into an E&O database. (This also happens to be one database that E&O readers have been asking for over the past year, so I’m particularly happy to — finally — get it done.) In case you are a newer reader: So far, in past Wednesdays issues, I’ve written about the digital health benefits stacks of 31 big companies — click any of the hyperlinked names below to read that previously published Wednesdays newsletter over at the E&O site:

• Walmart,
• Activision Blizzard,
• JP Morgan Chase,
• The Home Depot,
• Boeing,
• 3M,
• Chevron,
• BorgWarner,
• Bank of America,
• UnitedHealth Group,
• Costco,
• eBay,
• McKesson,
• Ford,
• Dell,
• AT&T,
• Disney,
• Novartis,
• Red Bull,
• VMware,
• T-Mobile/Sprint,
• Adobe,
• Phillips 66,
• Cox Enterprises,
• Wells Fargo,
• PayPal,
• Facebook,
• Sony Pictures,
• General Mills,
• General Electric,
• and Comcast.

If you’d like to see all of the digital health benefits offered by these companies side-by-side, check out the new E&O tracker here. Use the search bar at the top and search for a particular company’s name (try “Teladoc”) and it will only show the rows where that name is mentioned. That will give you an idea as to which big employers that company has landed.

(** I realized after putting this together that a handful of companies have consolidated since I started writing about these benefits stacks. Grand Rounds and Doctor on Demand, for example, are now merged and known as Included Health. I’ll aim to update this soon to show those companies are now one and the same, which will give a more accurate picture of which employers the combined entity counts as customers.)

Which big company’s benefits should I dig into next?

Some of these stacks are easier to figure out than others (so no promises), but let me know which company’s digital health benefits you’d like to learn more about by hitting reply to this email. If you happen to work at a Fortune 500 company (and I know that’s a lot of you), then please send me your benefits information.

Links to E&O’s reports, databases, newsletters

Click below for dedicated pages for each of those categories:

• Read through the long-form E&O research reports here.
• Search and sort the E&O databases here.
• Skim more than 200 past issues of E&O newsletters here.