The chronic disease-reversal telehealth startup by CoverMyMeds co-founder Matt Scantland has landed the Ohio Chamber of Commerce's group health insurance program as a client, expanding its client base to small businesses for the first time.
AndHealth is now an offering for small businesses in the Ohio Chamber Health Benefit Program, a state-regulated multi-member structure in which companies with two to 50 employees have independent health plans but access the economies of scale of a much larger group. The chamber's program is administered by UnitedHealth Group Inc. and includes some 20,000 covered employees and dependents.
The program is for certain painful chronic conditions that interfere with work and home life but offer only sporadic and episodic treatment options traditionally.
"Before today, these programs have only been available to big, self-insured companies," Chamber CEO Steve Stivers said in a statement to Columbus Inno. "Our partnership will bring these benefits to small businesses, their employees and families. With AndHealth’s intervention, the people impacted by these conditions not only get their lives back, but it can save money on insurance claims. We love these kinds of win-win opportunities."
AndHealth launched publicly in February 2022 with a $57 million private equity round, following several months of quietly building. Incorporated as And Health LLC, the startup has doubled in size over the past year, a spokeswoman said. It had 30 employees as of last February and 50 by August.
Until now AndHealth customers had been large employers who self-fund their health plans, who pay a monthly fee per enrolled patient. Under the partnership with the chamber, AndHealth's fees will be based on performance and not exceed savings on medical claims the program generates, a spokeswoman said.
Expanding to small businesses, Stivers said, helps achieve one of the action items in the chamber's recently released Blueprint for Ohio’s Economic Future, to reduce inequities in access to care for better health outcomes – making for a healthier workforce and a better state in which to live.
"This partnership will radically improve access to specialty care for tens of thousands of Ohioans in the Ohio Chamber Health Benefit Plan," Scantland said in a statement. "Leading employers in this state are recognizing that it is essential to provide care that can reverse the growing chronic disease illness burden by targeting the highest-cost chronic diseases and supporting patients in addressing root causes so that outcomes are improved versus the typical approach."
The conditions AndHealth treats so far are migraine, the recurrence of throbbing headaches, and certain autoimmune diseases, including rheumatoid arthritis, psoriasis, ulcerative colitis and Crohn’s. Combined about 45 million working-age Americans have the debilitating conditions, according to the startup, and often there are long waits for specialists such as neurologists or rheumatologists – and then only brief and sporadic appointments.
Annual medical costs can reach $100,000 for certain auto-immune conditions, Scantland said. For all the conditions – besides the personal pain and family disruption for the patient – employers can face disability payments, absenteeism and lost productivity.
With AndHealth, patients go through a series of tests to identify their causes, and through the app have frequent visits with a physician and health coaches to guide the patient through necessary behavioral changes. They also get supplies and medication to address the underlying cause and handle acute attacks.
"We meet patients in their home anywhere in the state through our hybrid virtual model," Scantland said in the statement.
Based at 2 Miranova Place in downtown Columbus, the startup also leased the kitchen of the closed M at Miranova restaurant to provide custom meals for Central Ohio patients on elimination diets – such as for a previously undiagnosed egg allergy.
Patient testimonials on AndHealth's website mention root causes that include stress, sinus conditions and previously undiscovered teeth-grinding. Individuals reported 80% decrease in monthly migraine attacks, and some no new headaches at all.
"Our proven results and the growing recognition of the importance of providing this kind of care has allowed us to increase the number of covered lives we support for employers and health plans by more than 10X in the past year," Scantland said. "We are grateful for the chance to help each of these people achieve their full potential and to thrive in their lives."
Scantland co-founded and led health IT company CoverMyMeds, which doubled nearly every year until its 2017 acquisition by McKesson Corp. for an eventual $1.44 billion – Ohio's first tech unicorn. He left at the end of 2019, taking time before deciding on a new startup.
AndHealth's executive team includes several key early CoverMyMeds leaders as well as national experts in telehealth and chronic disease care.
AndHealth's fees with the Ohio Chamber partnership will be based on a portion of verified savings on health plans, instead of its typical monthly flat fee for enrolled patient. The partnership provides an audience of 20,000 covered employees and dependents in health plans for companies in the Ohio Chamber Health Benefit Program. A previous version of this story incorrectly described the fee structure and size of the benefit program.
