They Raised $118 Million For a Recovery Startup

SURE THAT’S ENOUGH? –

Oct. 21, 2021 – More than 20,000 people have gotten treatment via Workit and the company has contracts with over 230 health plans, which helps solve one of the biggest hindrances to people seeking care: affordability. Even though health insurers are supposed to cover mental health services the same way as physical care, the high price tag of inpatient rehab means patients and providers confront obstacles and red tape when it comes to reimbursement, prior authorization and length of stay. The company says the average yearly cost for a Workit patient is around $4,200 and it has around 6,000 active members. Workit’s internal data shows more than 84% of members stay in the program longer than 30 days with 41% receiving treatment for more than a year. The majority of Workit’s members are on Medicare or Medicaid, while around 30% have commercial insurance. Grant funding helps cover some underinsured and uninsured patients.

“It’s really amazing what their product can accomplish,” says Nicole Shimer, a vice president at Insight who joined Workit’s board, in terms of being a win for both patients and health insurers. “Folks with substance use disorder are often some of the more expensive patients for [health] plans to cover and just being in treatment is shown to dramatically lower the overall cost of that patient to the plan. Plans can provide better treatments and also save a lot of money while doing so. It really benefits both sides of the equation.”