Livongo Shares Soar on Winning Diabetes Contract for Federal Employees’ Health Plan

Livongo diabetes contract
Image: Livongo

Livongo Health, a leading healthcare company empowering people with chronic conditions to live healthier lives, was awarded a contract to provide the Livongo for Diabetes solution to eligible members covered by the Federal Employees Health Benefits Program (FEHBP) who are living with Type 1 or Type 2 diabetes.

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Livongo said it expects the agreement to add about 25,000 Livongo for Diabetes members in 2020, growing to about 45,000 members in 2021, and up from an earlier expectation of 20,000 to 30,000 total members. As a result, the company anticipates this agreement will account for $20-25 million in revenue in 2020 and $30-35 million in revenue for 2021, or a total of $50-60 million including both years, reports Livongo Health.

“This is Livongo’s largest agreement to provide diabetes services in our history and is another great example of the market’s excitement about our Applied Health Signals platform and how our business is expanding from working primarily with self-insured employers, to broader and larger markets including government employees, labor unions, and the fully-insured populations of our health plan partners,” said Livongo Chief Executive Officer Zane Burke. “As we continue to show that Livongo creates a better Member experience that leads to improved clinical outcomes and lower costs, we are excited to work with more organizations that are bringing Livongo’s services into the fabric of the health benefits design for hundreds of thousands of people.”

Diabetes management platform

Livongo’s Applied Health Signals platform leverages advanced technology and data science to understand people’s unique health needs and then provide clinically-based guidance, or Health Nudges, to drive positive behavior change. The Livongo for Diabetes solution leads to higher Member satisfaction1, improved clinical outcomes2, and lower overall healthcare spending.

“This win highlights two of our competitive advantages.  First, government entities and large plans want to see multi-year, clinically validated results at scale, and only Livongo has that independently validated data.  Second, our AI+AI engine, which aggregates information from our own devices, electronic health records, pharmacy records, smart watches, and continuous glucose monitors, interprets that information, applies it back to our Members to learn what works, and then iterates using Health Nudges™, is making us smarter and more Member focused every day,” said Dr. Jennifer Schneider, M.D., M.S., President of Livongo.

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A 2019 study demonstrated that 94 percent of Livongo for Diabetes program Members who completed a program survey achieved improved Diabetes Empowerment Scale – Short Form (DES-SF) or Diabetes Distress Scale 2 (DDS2) in year one of the Livongo for Diabetes Program; effectively improving confidence in diabetes self-management while decreasing burnout related to diabetes management.