Santa Barbara Actuaries Inc. estimates that
Newtopia's platform can generate first year medical cost savings of
up to $1,700 per Medicare Advantage
plan participating member
TORONTO, ON, Dec. 10, 2020 /CNW/ - Newtopia Inc. (TSXV:
NEWU), a habit change platform for disease prevention, today
announced results of a study that demonstrates its programs can
provide significant medical cost savings when applied to Medicare
Advantage (MA) populations, according to a report authored by Santa
Barbara Actuaries Inc. and commissioned by Newtopia.
Newtopia's CDC accredited hyper-personalized approach combines
the best of human intervention and digital technology to improve
health and prevent, reverse, and slow the progression of chronic
disease.
"Using an actuarial process, we are able to estimate that
Newtopia's habit change platform could save up to $1,700 per MA member," said Ian Duncan, PhD, FSA, President of Santa Barbara
Actuaries. "We developed a high-level economic model that estimates
the potential savings from the Newtopia program when applies to a
given MA population with Metabolic Syndrome (MetS) prevalence. The
results of the report show promise of significant savings for the
MA population."
Santa Barbara Actuaries further stipulates that, where members
remain engaged with Newtopia for 12-months, the potential one-year
savings to a plan with 100,000 members is an estimated $10.8 million. Analysis of existing Newtopia data
for participants aged 65 years or more shows an expected one-year
average body weight reduction of 5.5%. This compares favorably to
the 4.3% average weight loss seen in younger Newtopia program
participants, as previously reported in a published randomized
controlled trial in the Journal of Environmental and Occupational
Medicine.
"Our published, randomized controlled trial with Aetna and
our current commercial outcomes prove that our programs make a
meaningful impact on employer populations by improving overall
health and cost savings," said Jeff
Ruby, founder and CEO, Newtopia. "With this model developed
by Santa Barbara Actuaries, we can confidently say that our
behavior change platform has a high likelihood of improving the
health of populations over 65 and generating corresponding cost
savings for MA payers."
In addition, Newtopia understands there are immediate benefits
with cost of care reduction for other Medicare risk-bearing
entities such as Accountable Care Organizations or other provider
organizations, who can also leverage our lifestyle intervention for
in-year savings. Providers who are accountable for a population's
total cost of care are likely to realize similar cost savings
results as Medicare Advantage plans.
Newtopia will be conducting deeper analytics on medical loss
ratio and other relevant Medicare metrics to further understand the
cost reduction and revenue impact potential for risk-bearing
entities.
About Newtopia
Newtopia is a tech-enabled disease prevention company focused on
healthy habit change. Newtopia prevents, reverses, and slows the
progression of chronic disease while enriching mental health,
resilience, and overall human performance. The platform leverages
genetic, social, and behavioral insights to create individualized
prevention programs with a focus on type 2 diabetes, heart disease,
stroke, and weight. With a person-centered approach that combines
virtual care, digital tools, connected devices and actionable data
science, Newtopia delivers sustainable clinical and financial
outcomes. Newtopia serves some of the largest nationwide employers
and health plans. To learn more, visit newtopia.com.
About Santa Barbara Actuaries Inc.
Santa Barbara Actuaries is an actuarial consulting firm that
assists clients in developing economic models to demonstrate the
financial efficacy of healthcare devices and intervention programs.
www.sbactuaries.com
Forward Looking Information
This news release contains forward-looking information and
forward-looking statements, within the meaning of applicable
Canadian securities legislation, and forward looking statements,
within the meaning of applicable United
States securities legislation (collectively,
"forward-looking statements"), which reflects management's
expectations regarding Newtopia's future growth, results from
operations (including, without limitation, future production and
capital expenditures), performance (both operational and financial)
and business prospects and opportunities. Wherever possible, words
such as "predicts", "projects", "targets", "plans", "expects",
"does not expect", "budget", "scheduled", "estimates", "forecasts",
"anticipate" or "does not anticipate", "believe", "intend" and
similar expressions or statements that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved, or the negative or grammatical variation thereof or
other variations thereof, or comparable terminology have been used
to identify forward-looking statements. All statements other than
statements of historical fact may be forward-looking information.
Such statements reflect Newtopia's current views and intentions
with respect to future events, based on information available to
Newtopia, and are subject to certain risks, uncertainties and
assumptions. Material factors or assumptions were applied in
providing forward-looking information. While forward-looking
statements are based on data, assumptions and analyses that
Newtopia believes are reasonable under the circumstances, whether
actual results, performance or developments will meet Newtopia's
expectations and predictions depends on a number of risks and
uncertainties that could cause the actual results, performance and
financial condition of Newtopia to differ materially from its
expectations. These forward-looking statements include, among
other things, the estimated cost savings to plan payers associated
with the use of Newtopia's platform by plan members, the potential
cost of care reduction for other Medicare risk-bearing entities,
the continued engagement with Newtopia's platform by plan members,
clients continuing to offer Newtopia's platform pursuant to
agreements entered into, statements relating to Newtopia's business
plans and outlook. Forward-looking statements are not a guarantee
and are based on a number of estimates and assumptions management
believes to be relevant and reasonable, whether actual results,
performance or developments will meet Newtopia's expectations and
predictions depends on a number of risks and uncertainties that
could cause the actual results, performance and financial condition
of Newtopia to differ materially from its expectations.. Certain of
the "risk factors" that could cause actual results to differ
materially from Newtopia's forward-looking statements in this press
release include, without limitation: the termination of contracts
by clients, risks related to COVID-19 including various
recommendations, orders and measures of governmental authorities
to try to limit the pandemic, including travel restrictions, border
closures, non-essential business closures, quarantines,
self-isolations, shelters-in-place and social distancing,
disruptions to markets, economic activity, financing, supply
chains and sales channels, and a deterioration of general
economic conditions including a possible national or global
recession; and other general economic, market and business
conditions and factors, including the risk factors discussed or
referred to in Newtopia's disclosure documents, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedar.com including Newtopia's final long form prospectus dated
March 30, 2020.
For more information on these risks please see the "Risk
Factors" in Newtopia's final long-form prospectus dated
March 30, 2020. Should any factor
affect Newtopia's in an unexpected manner, or should assumptions
underlying the forward- looking information prove incorrect, the
actual results or events may differ materially from the results or
events predicted. Any such forward-looking information is expressly
qualified in its entirety by this cautionary statement. Moreover,
Newtopia does not assume responsibility for the accuracy or
completeness of such forward-looking information. The
forward-looking information included in this press release is made
as of the date of this press release, and Newtopia undertakes no
obligation to publicly update or revise any forward-looking
information, other than as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE Newtopia Inc.