Color Health builds out virtual cancer clinic, taking aim at employer, health plan market

Cancer continues to be employers' biggest treatment cost, driving up healthcare spending. 

Costs for cancer-related medical services and drugs are expected to reach nearly $250 billion in the U.S. by 2030—a 34% increase since 2015, according to a study by the American Association for Cancer Research.

And, while oncology accounts for only 1% of claims volumes, it makes up 15% of the overall employer healthcare spend, according to a report by The Mahoney Group.

Health tech company Color Health is doubling down on its play for employer-sponsored cancer care, building on its work with the American Cancer Society (ACS) to offer comprehensive cancer management.

The company developed a fully integrated virtual cancer clinic for employers, unions and health plans that is designed to support individuals from screening and early detection through diagnosis, treatment and survivorship.

Color, a platform for large-scale care delivery, is rolling out its virtual cancer clinic to more than 45 employers, health plans and unions across the country. The offering will be made available to customers starting January 2025.

The company says it has two years of market research and partners like the ACS behind the program. 

A year ago, Color unveiled a partnership with ACS to provide access to convenient and accessible cancer screenings through employers and unions. In March, the two expanded the program to form a comprehensive cancer solution that provides care coordination post-diagnosis.

Hasbro and Teamsters Health & Welfare Fund of Philadelphia & Vicinity are two companies using Color's initial cancer prevention and screening program.

Color's expanded virtual cancer clinic consists of direct cancer treatment management and navigation services with a broader team of physicians, nurses and other health practitioners within Color's affiliated 50-state medical group. Health plan members and employees have access to 24/7 oncologist-led care for any type of cancer diagnosis, according to the company. Services include diagnostic workups, treatment protocol reviews, and proactive symptom and medication management, with expert consultations from a network of clinicians from National Cancer Institute-designated cancer centers.

The offering also includes a financial hardship program to reduce the burden of out-of-pocket expenses on employees and members. With Color's care wallet, employees can be reimbursed for cancer-related expenses through a cancer-dedicated health reimbursement account funded by employers.

Color also claims its the first virtual care program modeled after survivorship clinics at centers of excellence that take on care management for patients finishing treatment, effectively managing the gaps between oncology and primary care. This program also addresses return-to-work and career success on an ongoing basis, the company said.

"At Color, we recognize that cancer is more than chemotherapy, it is more than radiation. Cancer impacts every aspect of patients' lives – interpersonal relationships, finances, mental health, work, burden on friends and family, and so much more. If we don't start treating cancer for everything that it is—all encompassing—the U.S. will continue to see rising costs, rising rates of late-stage cancer diagnoses, and unfortunately, an increase in mortality rates," said Rebecca Miksad, M.D., Color Health's chief medical officer, in a statement.

Color Health also built generative AI tools with a AI-powered cancer copilot app, created in partnership with OpenAI. It's working with OpenAI to test out computer-generated personalized care plans for cancer patients. The app leverages GPT-4 to identify missing diagnostics and create tailored workup plans for patients. 

Earlier intervention and guidelines-based patient care can improve cancer outcomes and costs. For each cancer case caught one stage earlier, costs can decrease by $63,000 in the first year of treatment and the five-year survival rate increases by up to 140%, according to a study published in BMC Health Services Research.

"What Color offers is a dream come true for primary care physicians, patients, families, and employers when it comes to cancer care, filling in gaps when and where patients and clinicians encounter them," said Gretchen Mockler, M.D., a primary care physician at Weill Cornell Medicine. "Color allows us, as primary care physicians, to operate at the top of our license while also ensuring our patients are up-to-date on necessary screenings and getting the answers they need between visits."

Earlier this year, Color shared results from a cohort pilot study on the impact of its cancer screening program. Participants were from diverse backgrounds, between the ages of 45 and 65, and behind on at least one cancer screening. According to the study, guidelines-based screening adherence rates doubled to tripled in just eight weeks.

Color has evolved its business significantly in the past nine years, pivoting from its initial focus on gene testing and precision genomics. During the COVID-19 pandemic, the company expanded its capabilities to focus on improving key health infrastructure systems across the U.S.—including those related to the “last mile” delivery of COVID-19 vaccines. 

The company now focuses on using technology to power population-scale public health services and to increase access to essential healthcare services to help screen, diagnose and treat populations where they are, such as at their workplaces or schools. In the past few years, Color has ramped up its focus on health plans, unions and employers. Two years ago, it launched a behavioral health care solution to expand access to mental care services for public health agencies, schools, employers and organizations tackling population health.

In 2021, Color Health picked up $100 million in series E financing and has raised $378 million to date.