Health Tech Newsletter: AI in Insurance Under Scrutiny, 23andMe’s Bankruptcy, and Digital Therapeutics Updates
This week’s Health Tech newsletter from STAT explores the rapid evolution of technology’s impact on healthcare and life sciences. Here’s a recap of the major stories.
The Rise of AI in Insurance and Regulatory Concerns
Health insurance companies are increasingly using artificial intelligence to improve efficiency and reduce costs. However, regulators express growing concern over the swift adoption of these tools, which may outpace the ability to assess their impact on patient care and coverage decisions.
As reported by Casey Ross, insurance watchdogs are worried about the potential for discrimination and harm in the use of AI. A report from consumer representatives to the National Association of Insurance Commissioners urged immediate action to safeguard patients. Meanwhile, insurance companies like UnitedHealth, Elevance, CVS Health/Aetna, Cigna, and Centene maintain that AI streamlines processes and diminishes delays.
23andMe Files for Bankruptcy: Data Security Concerns
23andMe filed for bankruptcy following the failed attempt of its co-founder, Anne Wojcicki, to take the company private. Wojcicki has stepped down as CEO. STAT’s Matthew Herper notes the bankruptcy is a setback for all parties involved. The greatest concern may be the fate of consumer genetic data. That data is now subject to sale to the highest bidder. California’s attorney general advised consumers to consider deleting their data.
Updates on Two Digital Therapeutics Business Models
Digital therapeutics companies are pursuing different models for delivering software-based medical treatments to patients.
Big Health is partnering with healthcare systems and providers, including telehealth firms, to offer its apps to patients. CEO Yael Berman described the partnership with Henry Ford Health to provide SleepioRx, Big Health’s FDA-cleared treatment for insomnia. Early results reveal that of those offered the app, 39% enrolled and 43% used a clinically effective dose, signaling early success.
Click Therapeutics announced a Series C funding round from Dassault Systèmes. Click hopes to capitalize on draft FDA guidance that would enable drugmakers to incorporate related software into their product labels, potentially integrating apps with medications. Click primarily focuses on clinical evidence and developing several of its treatments in conjunction with drug makers; the company’s only available product is a depression treatment developed with Otsuka. The high cost of trials necessitates additional funding.
Perspectives on AI Regulation
Several recent publications address the regulation of AI in healthcare.
Research published in NPJ Digital Medicine highlights LLM’s capacity to generate device-like outputs. Presenting GPT-4 with instances involving “time-critical emergencies,” it produced device support responses in 100% of instances. Another viewpoint in JAMA Network Open investigates the forecast for health AI regulation, including the Trump administration’s initiatives involving cutbacks to FDA staff. The authors propose increased federal health department authority over health AI, requiring legislative action, and emphasize the importance of reinforcing private governance within healthcare organizations during the interim.
What We’re Reading
- Cancer research, long protected, feels ‘devastating’ effects under Trump, STAT
- OIG’s remote patient monitoring audits are here: What you need to know, Nixon Law
