Tempus Now an In-Network Provider for Blue Cross Blue Shield Illinois, Blue Shield California, and Avalon Healthcare Solutions

Rhea-AI Summary

Tempus has secured in-network provider status with several major healthcare insurers, including Blue Cross Blue Shield (BCBS) of Illinois, Blue Shield of California, and Avalon Healthcare Solutions. Through the Avalon agreement, Tempus becomes a participating provider with BCBS entities in North Carolina, South Carolina, Vermont, as well as Capital BlueCross and CareSource in four markets. This expansion enhances Tempus' presence with commercial health plans in the East.

The agreements enable patients with these insurance plans to access Tempus' comprehensive molecular profiling portfolio as a participating provider, potentially leading to lower out-of-pocket costs for testing services. These molecular profiling tests help physicians make more informed, personalized treatment decisions throughout patients' care journeys.

Positive

• Expanded insurance coverage network potentially increasing patient access and revenue
• Reduced out-of-pocket costs for patients may drive higher testing volumes
• Strategic expansion in Eastern US markets through multiple BCBS partnerships

Negative

• None.

Insights

Healthcare Market Analyst

This network expansion agreement represents a significant milestone for Tempus's market penetration strategy. Securing in-network status with major insurers like BCBS Illinois, Blue Shield California and multiple East Coast BCBS entities through Avalon Healthcare Solutions substantially increases Tempus's addressable market. The deal will enhance revenue streams by reducing barriers to access for millions of covered patients and streamlining reimbursement processes. Most importantly, in-network status typically leads to higher test volumes and more predictable revenue as patients face lower out-of-pocket costs. This type of broad insurance coverage is important for diagnostic companies to achieve commercial scale and sustainable growth in the precision medicine market.

Medical Research Analyst

The expanded insurance coverage for Tempus's molecular profiling tests represents a critical advancement in democratizing access to precision medicine. Their comprehensive testing portfolio enables physicians to make data-driven treatment decisions based on each patient's unique molecular profile. This partnership model with major insurers will likely accelerate the adoption of precision diagnostics in clinical practice. The integration of these tests into standard insurance coverage signals growing acceptance of molecular profiling as a necessary component of modern cancer care, rather than an optional add-on service.

CHICAGO--(BUSINESS WIRE)-- Tempus, a technology company leading the adoption of AI to advance precision medicine and patient care, today announced that the company has signed agreements for in-network provider status with Blue Cross Blue Shield (BCBS) of Illinois, Blue Shield of California, and Avalon Healthcare Solutions, a laboratory benefit manager. As part of the agreement with Avalon, Tempus is a participating provider with BCBS North Carolina, BCBS South Carolina, BCBS Vermont, Capital BlueCross and CareSource in four markets. This enhances our work with commercial health plans in the East.

Patients with these insurance plans will now have access to Tempus testing as a participating provider. Tempus’ comprehensive molecular profiling portfolio provides physicians and their patients the solutions necessary to personalize treatment decisions throughout their journey. Now, as an in-network laboratory, Tempus’ collection of assays can be applied to optimize patients’ care and may lead to lower out-of-pocket costs for patients who receive any such testing in accordance with their individual plan.

“Molecular profiling tests are increasingly a critical part of patients’ treatment journeys as they enable physicians to make more informed decisions on a deeply personalized level,” said Ezra Cohen, MD, Chief Medical Officer of Oncology at Tempus. “In addition to offering one of the most comprehensive testing portfolios, our mission is to expand access to the many patients in need of optimized care.”

To learn more about our testing portfolio, visit tempus.com/oncology.

About Tempus

Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world’s largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data. For more information, visit tempus.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus and Tempus’ industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, statements regarding the expected benefits of Tempus’ test offerings and its capabilities for physicians. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus’ business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: Tempus’ financial performance; the ability to attract and retain customers and partners; managing Tempus’ growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus’ intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled “Risk Factors” in Tempus’ Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 filed with the Securities and Exchange Commission (“SEC”) as well as in other filings Tempus may make with the SEC in the future. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218016984/en/

Erin Caron

media@tempus.com

773-612-4414

Source: Tempus

FAQ

Which insurance providers has Tempus partnered with in 2024?

Tempus has partnered with Blue Cross Blue Shield of Illinois, Blue Shield of California, and Avalon Healthcare Solutions, along with BCBS entities in North Carolina, South Carolina, Vermont, Capital BlueCross, and CareSource.

How will the new insurance partnerships affect patient costs for Tempus testing?

As an in-network laboratory, patients covered by these insurance plans may experience lower out-of-pocket costs for Tempus testing services, subject to their individual plan terms.

What geographical markets does Tempus now cover through the Avalon Healthcare partnership?

Through the Avalon Healthcare partnership, Tempus extends coverage to the Eastern US, specifically including North Carolina, South Carolina, Vermont, and four additional markets through CareSource.

What services does Tempus provide under these insurance partnerships?

Tempus provides comprehensive molecular profiling tests that help physicians make personalized treatment decisions for patients throughout their care journey.