December 17, 2019

Claims Analysis of Omada Program Shows Significant Savings

IBM Watson Health Analysis Demonstrates Nearly $1,800 in Savings for Each Dow Employee Enrolled

San Francisco, CA (December 17, 2019) - Omada Health today released the results of an independent claims analysis on the effectiveness of the company’s flagship digital care program. The analysis, conducted by IBM Watson Health, tracked the health and economic impact of more than 2,000 Dow employees enrolled in the Omada for Prediabetes Program over the course of two years. The analysis demonstrated strong results on participant engagement, health outcomes, and medical costs savings. 

In the first year, Dow spent an average of $1,169 less on medical expenses per participant enrolled in the Omada Program compared to a matched cohort. An additional $630 in savings was realized in Year Two, for a total savings of $1,799 per employee enrolled in the Omada Program. The matched cohort was determined by IBM Watson Health. Participants were matched based on a number of different variables including demographics, clinical comorbidities, health plan type, as well as prior year prescription drug spend and overall medical claims.

“Achieving outcomes with participants in real-world settings is what actually matters in healthcare -- for digital health companies, employers, and users,” said Omada Co-Founder and CEO Sean Duffy. “Our success with Dow and their workers shows what can happen with deep collaboration between an employer and digital care company, and a common commitment to delivering effective, personalized benefits to a population.”

In addition to the topline cost savings, emergency room admission rates were 63 percent lower for Omada participants in the first year; diabetes-related medical and prescription spending was 62 percent lower. Each program participant was matched in the baseline year to a control member in a comparison population as determined by IBM Watson Health. The analysis focused on clinical outcomes and medical claims of the 2,000 person population. The overall objective of the study was to determine if meaningful improvements were achieved in reducing disease progression, health care utilization, and medical spending.