A Startup For Individuals With Diabetes Rolls Out A New Model: Insurers Only Pay If The Service Works

Online diabetes treatment clinic Virta Health (Virta) recently announced a new business model in which health plans and employers will only have to pay a fee to Virta if Virta’s services are effective. Specifically, the health plans will only pay a fee if consumers they treat with type 2 diabetes are sufficiently engaged with Virta’s program after one month’s time.

Furthermore, after the first year of services, the second fee is only paid to Virta if consumers’ A1C is lowered to a specific level determined on a case-by-case basis. A1C measures the amount of hemoglobin . . .