Highmark Health, a large regional health insurer that also owns a chain of hospitals, is now covering a handful of digital treatments for chronic pain and other conditions for millions of its patients. The move, which could provide a boost to digital therapeutics makers, may feel like déjà vu for close industry observers.
In 2022, Pittsburgh-based Highmark issued a policy stating that it would cover eight Food and Drug Administration-cleared prescription digital therapeutics for people in its commercial plans. Back then, the decision was heralded as a major turning point for a nascent health tech sector that was struggling to secure coverage from insurers.
Still, Highmark leaders cautioned at the time that the policy was a first pass and that more administrative work needed to be done before members would see benefits. And indeed, over the last two years, Highmark paid for only a small number of digital treatments under the policy.
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