Digital behavioral health startup Pelago, formerly Quit Genius, has announced that its platform will expand its offerings to care for youth with substance use disorder (SUD).
The new coordinated care program will treat teens aged 15 to 17 for tobacco and alcohol use disorders (AUD), and individuals aged 16 and over for opioid use disorder (OUD). Meanwhile, users 18 and over will be enrolled in the adult program.
Teens enrolled in the program can access a multi-substance and clinically led coordinated care program that caters to the specific needs of adolescents.
“Pelago’s program has been developed specifically with adolescents in mind,” Dr. Yusuf Sherwani, CEO of Pelago, told Behavioral Health Business in an email. “A key component to this is an emphasis on risk assessment. Knowing that depressive episodes are commonly linked to adolescent substance use disorder – along with the mental health struggles of adolescents in general – we have put in definitive guardrails to identify such symptoms and work with our adolescent members to ensure they also receive the mental health care they need through our care coordination process.”
Pelago has also been developing a digital cognitive behavioral therapy (CBT) program designed specifically for teens, according to Sherwani.
Founded in 2015, Pelago uses a value-based care approach to treating AUD, OUD and tobacco use. Members can use the platform to access self-administered digital services and telehealth offerings.
In 2021, Pelago raked in $64 million in Series B funding, bringing its total raise to $78.6 million.
Last summer, it switched its B2B reimbursement framework to a full-risk payment model.
Its new youth-focused program comes at a time when rates of SUD in teens are rising. There are roughly 5.1 million young adults in the U.S. living with SUD, according to the Substance Abuse and Mental Health Services Administration.
Still, almost 9 out of 10 of those living with SUD do not get treatment.
“Extending substance use care to younger populations is a natural extension of our mission to break down barriers to substance use care,” Sherwani said. “However, over the past year or so, we’ve really seen the topic of adolescent behavioral health support get more attention from employers, health plans and families. We think this is due to a number of factors, including the lingering effects of the pandemic, parents or guardians worrying about or missing work because of an adolescent family member’s substance use, and increased prevalence overall of substance use among adolescents.”
Teens enrolled in the program will have access to behavioral health coaches, counselors and providers. However, there are a few critical differences in the teen and adult programs, specifically around medication-assisted treatment (MAT).
For example, adolescents enrolled in the AUD treatment program will be treated by a counselor and have access to a provider. But the MAT used to treat this condition is not approved for the teen population.
MAT can be used in many cases with the teen population. For example, teens enrolled in the tobacco use program can access a coach and app content, as well as nicotine replacement therapy prescribed by a provider.
How it’s paid for
Pelago’s primary focus is on the B2B space, and this offering is no different. Its clients can opt into offering this program to individuals under 18. Sherwani noted that the bulk of its clients are choosing to make its teen SUD support program available to eligible dependents of its employees or members.
Teens with the required parental or guardian consent can enroll in the program, and adolescent pricing will follow Pelago’s existing utilization pricing model.
“We follow the same 100% fees-at-risk business model based on agreed upon clinical outcomes and performance metrics, including tobacco quit rate, alcohol or opioid days abstinent, engagement, and overall satisfaction,” Sherwani said.
Looking ahead, Pelago is developing a support program for parents and guardians, slated to launch in 2024.
“[It] will include education and guides on how to talk to their children/dependents,” Sherwani said. “Our approach will respect the relationship between parent and child by acknowledging how parents are impacted.”
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