What shaped at-home diagnostics in 2023

In 2023, many new developments and familiar limitations shaped the at-home diagnostics space. GLP-1 agonists took center stage as demand soared. However, the surge uncovered cost-related challenges for employers and health plans. Simultaneously, retailers delved deeper into home healthcare, expanding their offerings beyond traditional products. Amidst these developments, a significant number of tech startups, including healthtech giants, faced collapse, underscoring the importance of integrating innovation within existing healthcare frameworks.

The absence of CPT codes for at-home tests persisted, posing challenges for reimbursement and potentially keeping costs high for certain customers. Despite these hurdles, a renewed focus on sexual health emerged, driven by a notable increase in STIs. This shift prompted discussions on leveraging at-home testing to overcome barriers to care, with public health departments engaging in initiatives for underserved populations.?

GLP-1s were kind of a big deal

Demand for GLP-1 agonists soared in 2023, but revealed issues related to costs for employers and health plans. Human resource decision-makers recognized the benefits of GLP-1s in controlling blood sugar, aiding weight loss, and improving blood pressure, but 38% cited cost as a potential obstacle to coverage. 77% believe GLP-1 coverage would enhance employee morale regarding their health insurance package. Employers have started to investigate the use of remote diagnostics to monitor how patients respond to GLP-1s. This approach could establish a framework for healthcare providers to gradually discontinue GLP-1s once health goals are achieved, thereby mitigating long-term costs.

Retailers showed greater interest in at-home screening programs

Retailers continued to explore home healthcare beyond post-COVID-19 testing. While pharmacies and big-box stores traditionally provided home pregnancy tests, UTI strips, and drug screening kits, they now stock third-party diagnostic tests and proprietary kits. CVS, for instance, sells self-collection kits for Lyme disease, vitamin D levels, diabetes, and heart health. Walgreens offers branded tests for food sensitivity, thyroid function, and allergies.?

Tech startups encountered difficulties

According to Pitchbook, approximately 3,200 private venture-backed U.S. companies went out of business in 2023. They had raised $27.2 billion in cumulative venture funding. This included healthtech companies like virtual primary care provider Babylon Health as well as Pear Therapeutics, a prescription digital therapeutics pioneer. Many startups won large funding rounds in 2021, but failed in 2023 because they tried to reimagine health care from the ground up, rather than plugging into systems that already exist.

Still no CPT codes?

At present, there are no CPT codes enabling providers to invoice insurance for at-home tests, despite California mandating coverage for STI test kits. Consequently, the cost of at-home test kits might remain high for certain customers. In the future, insurers may consider acknowledging receipts for reimbursement of kits obtained from pharmacies or major retail outlets. Meanwhile, retailers must explore alternative cost-saving strategies to compete with digital health. Larger retailers, owing to their extensive market presence, might potentially reduce individual test expenses through economies of scale.

Renewed sexual health focus?

The most recent CDC STI surveillance report published in April 2023 pointed to a rise in STIs, including 2.5 million cases of chlamydia, gonorrhea, and syphilis, and called for comprehensive tools like “rapid diagnostics” to tackle the national surge. This prioritization of testing led to renewed discussions on the role of at-home testing to reduce barriers to care for patients. While expensive at-home diagnostic kits exist on various ecommerce platforms, public health departments have started to engage with at-home diagnostics for underserved patient populations. One of our partners, Fulton County Board of Health, recently released data on the success of their at-home STI screening program.?

Ash Wellness builds best-in-class tools to launch at-home diagnostics programs for clients in all 50 states. We offer 150+ types of tests to reach more patients, including the most marginalized, and drive patient retention. Our white-label capabilities allow clients to provide a fully branded customer experience. Schedule a time to speak with us.