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Insurer turns to digital health to offset obesity-driven costs

The news: Health insurer Highmark Health will cover the cost of Noom’s weight management programs as part of plan members’ medical benefits starting next year.

Digging into the details: Eligible Highmark members can opt into an initial assessment to determine which Noom program is the best fit.

  • One tier focuses on psychology-based lessons and helping members understand the “why” behind their habits. This program incorporates AI-powered tools, such as smart food logging, body scan technology, and automated progress tracking.
  • Another option is for people who take GLP-1 medications. Support offered by Noom includes protein intake guidance, strategies to help retain muscle, and information on managing side effects.
  • Other programs are designed to help members lower their risk of developing type 2 diabetes, or for patients already living with the condition.

Why it matters: Highmark expects about 30% of its 7 million members will be eligible for Noom’s services. The health insurer is fronting the cost, but hoping to achieve savings from Noom’s programs since obesity and diabetes are among the top drivers of healthcare spending.

What it means for insurers: Healthcare costs for insurers and employers are climbing, leading many to shift expenses to members and employees—growth in family premiums is outpacing inflation and workers’ earnings, per just-released KFF data. This trend is also pushing insurers and employers to find ways to reduce members’ spending on medical services and prescription drugs.

Digital health tools like Noom offer a solution, but they must boost member engagement to deliver ROI for customers. The companies should collaborate on targeted outreach—using AI and analytics to identify eligible members, promoting no-cost programs via text and email, and highlighting benefits through clear messaging, case studies, and testimonials.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Not a subscriber? Click here to get a demo of our full platform and coverage.

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