Theranos, a Palo Alto, Calif.-based clinical lab company, and central Pennsylvania insurer Capital BlueCross have struck a deal that will allow Capital Blues members to submit for lab testing with just a few drops of blood.
The deal lands high-tech Theranos its first service area in the East since its founding in 2003, in addition to full-service labs and testing in Arizona and Palo Alto. The company boasts the ability to conduct many tests with just a finger prick. It also allows for a smaller venous blood draw than what's needed by traditional labs and produces quicker results.
The company received clearance from the Food and Drug Administration for its laboratory technology and herpes simplex 1 virus test last week. This isn't a necessary step to conduct testing, but the company has submitted several applications to the FDA to calm criticism of the secrecy behind its tests and lab technology.
Theranos publishes a “menu” on its website detailing the prices of all of its tests, all of which are at least 50% below the Medicare reimbursement rate, the company says. Test prices for Pennsylvania, including full fertility panels at $35 and cholesterol tests at $2.99, will be listed, the company said.
Testing will be available at Capital BlueCross' brick-and-mortar stores, starting with its location in Harrisburg, Pa., and Theranos also plans to build testing sites across the region. More than ever, insurers are now involved in business-to-consumer direct lines of business, with physical locations and wellness services.
If expanded across the country, the Theranos model could threaten traditional lab giants like Laboratory Corporation of America and Quest Diagnostics. Aji Abraham, senior VP of business and network development at Capital BlueCross, said the midsize insurer competes with a lot of larger companies, so it needs to find ways to disrupt business models and stand out.
“We're always on the lookout for ways to bring more effective services to get our members more engaged in healthcare decisionmaking,” Abraham said, noting that he wouldn't rule out an exclusive lab agreement if Theranos is able to adequately expand.
