As the popularity of medications like Ozempic and Wegovy continues to grow, more and more employees are seeking insurance coverage for these drugs. However, some employers, such as the University of Texas and private healthcare system Ascension, have decided to discontinue coverage due to the rising costs associated with the increasing number of individuals using GLP-1 medications. For example, UT’s announcement revealed that the monthly cost for covering these medications has risen from $1.5 million to $5 million over the past 18 months.
This is where Virta, a healthcare technology company founded eight years ago, sees an opportunity. Virta works with employers like United Airlines and UPS, as well as healthcare plans, to address type 2 diabetes and obesity using nutritional therapy. The company offers a cheaper alternative to GLP-1 medications for weight loss treatment, providing virtual platform and services for $249 a month for patients without insurance coverage. Virta has received $133 million in funding from investors such as Tiger Global and Founders Fund.
“Having obesity or type 2 diabetes is not a personal choice,” says Virta cofounder and CEO Sami Ikinen. “It’s a metabolic disease, and we need to treat it as such.” Ikinen was inspired to start the company after being diagnosed as prediabetic and working with doctors to change his nutritional habits to prevent the spread of the illness.
Virta’s initial focus was on treating pre-diabetic and diabetic patients, and the company has observed firsthand the effects of GLP-1 medications on patients before the recent surge in demand. “In the last 18 months, we went from exclusive focus on type 2 diabetes to treating people who are obese or overweight,” Ikinen notes.
Over the years, Virta has developed a track record of weaning patients off GLP-1 medications while helping them maintain their weight. The company emphasizes nutritional plans that involve a high-protein diet and carb reduction to eliminate cravings and ensure satiety for users. The main difference between Virta and other companies like Noom is that Virta continuously monitors patient readings and adjusts the diet accordingly.
According to Ikinen, 70% of Virta patients have been able to come off GLP-1 medications within a year, many of them unable to tolerate the side effects. In contrast to the perceived long-term use of GLP-1s, Virta aims to provide a sustainable solution without the reliance on medication.
It’s clear that Virta’s approach to diabetes and obesity treatment is gaining recognition as a viable alternative to expensive medications, and this innovative approach is gaining traction in the corporate world.
