Unlocking Healthier Habits: Can Small Cash Incentives Prompt Positive Change?

Health Tech Startup Wellth Secures $36M to Reinvent Patient Engagement

Los Angeles, CA – August 21, 2024 – A Los Angeles-based digital health company is poised to disrupt the conventional healthcare outreach model. Wellth, a startup focused on improving patient engagement, announced on Thursday the closing of a $36 million Series C funding round, bringing its total raised capital to $76 million.

The Problem With Traditional Healthcare Outreach

The Current U.S. Healthcare System frequently enough relies on infrequent and, as many patients find, intrusive communication methods. according to a recent survey by EHRscape, over 60% of patients feel overwhelmed by the number of healthcare-related messages they receive. Wellth CEO Matt Loper explains that the typical approach – a barrage of prescription refill reminders, bill notifications, and now, increasingly, AI-driven communications – often increases stress rather than promoting well-being.

Loper argues that this “sick care” system, where interventions frequently occur only when illness strikes, is both costly and ineffective. Preventable conditions account for a considerable portion of healthcare spending; The Centers for Disease Control and Prevention estimates that approximately 90% of the nation’s $4.1 trillion in annual health care costs are for chronic and mental health conditions.

Wellth’s dopamine-Driven Approach

Founded in 2014, Wellth has developed a “daily care motivation platform” designed to foster consistent healthy behaviors. the application utilizes small financial incentives-such as cash rewards or gift cards-coupled with personalized encouragement, to encourage users to prioritize their health. Unlike conventional outreach, Wellth aims to provide a positive, rewarding experience daily.

The initial financial rewards are intended to create a consistent habit, but the long-term goal is to shift motivation toward intrinsic rewards-feeling better, maintaining independence, spending time with family. The company strategically leverages the brain’s reward system, specifically dopamine, to create engaging experiences.

“we are essentially building a habit-forming loop that mimics the positive reinforcement found in popular social media platforms but applies it to health behaviors,” said Loper. “Instead of chasing likes and notifications, members are rewarded for taking care of themselves.”

This strategy has yielded impressive results: Wellth reports a 91% daily engagement rate, even among individuals traditionally considered non-adherent to medical advice, including those enrolled in Medicare, Medicaid, and dual-eligibility programs. To date, the platform has facilitated over 50 million daily health behaviors among its 100,000+ members.

Metric	Wellth Impact
Inpatient Costs	Statistically Significant Reduction
Emergency Department Visits	Statistically Significant Reduction
Medicare Advantage Star Ratings	Advancement
Care Gap Closure Rates	Improvement

investment and Future Plans

The $36 million Series C round was led by Mercato Partners, with participation from CD-Venture, comcast Ventures, FCA Venture Partners, new York Life Ventures, and SignalFire. Wellth partners with health plans and providers who assume financial risk for both the cost and quality of care. The company bases its fees on achieving demonstrable improvements in these key metrics.

Did You Know? Poor medication adherence leads to approximately $300 billion in preventable healthcare costs annually in the United States.

Pro Tip: Small, consistent changes to your daily routine are more lasting than drastic overhauls.

Investors appear confident that Wellth’s innovative approach can deliver both healthier patients and a positive return on investment.

The Future of Patient Engagement

The shift towards preventative care and proactive health management is gaining momentum. Technologies like Wellth, leveraging behavioral science and digital engagement, are likely to play an increasingly vital role in this conversion. The rise of value-based care models, where providers are rewarded for outcomes rather than volume, further incentivizes solutions that improve patient adherence and overall health. As healthcare continues to evolve,expect to see more personalized and engaging tools designed to empower individuals to take control of their well-being.

Frequently Asked Questions about Wellth

What are your thoughts on incentive-based healthcare? Do you think this approach could improve your own health habits?

Share your opinion in the comments below!

Is the principle of loss aversion consistently more effective than reward-based incentives in driving sustained behavioral changes related to employee health?

The Psychology Behind Financial Incentives & Behavior Change

For years,health initiatives have relied on education and willpower. But what if a little cash could tip the scales? The idea of using financial incentives to promote healthier habits isn’t new, but recent research is revealing just how effective – and nuanced – these programs can be. This isn’t about bribery; it’s about leveraging behavioral economics to encourage positive lifestyle changes. Understanding the psychology is key. Loss aversion – the tendency to feel the pain of a loss more strongly than the pleasure of an equivalent gain – plays a meaningful role. Programs framed around losing a small amount if a goal isn’t met often prove more motivating than those offering a reward for success.

What Habits Can Cash Incentives Influence?

The scope of habits amenable to cash incentive programs is surprisingly broad. Hear’s a breakdown of areas where these interventions have shown promise:

Smoking cessation: Offering financial rewards for verifiable abstinence.

Weight Management: Incentivizing regular weigh-ins and achieving weight loss goals.

Medication Adherence: Rewarding patients for consistently taking prescribed medications. This is particularly crucial for chronic conditions like diabetes and hypertension.

Physical Activity: Tracking steps, gym visits, or minutes of exercise and providing financial rewards accordingly.

Preventive Care: Incentivizing vaccinations, screenings (mammograms, colonoscopies), and annual check-ups.

Dietary Improvements: Rewarding the purchase of healthy foods or participation in nutrition counseling.

Mental Wellness: Encouraging therapy attendance or completion of mindfulness exercises.

How Do Cash Incentive Programs Work? – Different Models

There isn’t a one-size-fits-all approach. Several models are employed, each with it’s strengths and weaknesses:

1. Deposit Contracts: Participants deposit a sum of money upfront. They get it back if they achieve thier goal, but forfeit it if they don’t.This taps into loss aversion.
2. Reward Systems: Participants earn money for achieving pre-defined milestones. This is a more positive reinforcement approach.
3. Lottery-Based Incentives: Participants who meet their goals are entered into a lottery with a larger cash prize.This adds an element of chance and excitement.
4. Tiered Incentives: Rewards increase as participants achieve progressively more challenging goals. This provides ongoing motivation.
5. Social Incentives: Combining financial rewards with social support and accountability.

The Role of Technology: Wearables & Mobile Apps

Technology is revolutionizing incentive-based health programs.Wearable fitness trackers (Fitbit, Apple Watch) and mobile health apps provide objective data on activity levels, sleep patterns, and other health metrics. This data can be automatically linked to incentive programs, streamlining the process and reducing the potential for fraud. Digital health platforms also facilitate personalized feedback and coaching,enhancing the overall effectiveness of the intervention.The integration of telehealth further expands access to support and monitoring.

Benefits of Using Financial Incentives for Health

Beyond the obvious impact on individual habits, cash incentives offer broader benefits:

Increased Engagement: Programs are more likely to attract and retain participants.

Improved health Outcomes: Studies consistently demonstrate positive effects on key health indicators.

Cost-Effectiveness: While there’s an upfront cost, preventing chronic diseases through proactive health management can lead to significant long-term savings in healthcare expenditure.

Reduced Health Disparities: Targeted programs can address health inequities by providing financial support to vulnerable populations.

Empowerment: Individuals feel more in control of their health when they are actively rewarded for making positive choices.

real-World Examples & Case Studies

Momentum by Wellframe: This program, used by several health plans, offers rewards for completing preventive care tasks and managing chronic conditions.

shapeup: A corporate wellness platform that uses gamification and financial incentives to encourage employee health.

The university of Pennsylvania’s smoking Cessation Study: Demonstrated that participants offered financial incentives were substantially more likely to quit smoking than those who received standard counseling. (Source: new England Journal of Medicine)

swiss Banking and Finance: As of 2025, cash.ch, a leading Swiss financial portal, continues to provide access to financial markets and information, demonstrating the ongoing importance of financial literacy and access. (Source: cash.ch) – While not directly health-related, this highlights the broader societal relevance of financial tools.

Practical Tips for Designing Effective Incentive Programs

Set Realistic Goals: Goals should be challenging but achievable.

tailor incentives: Consider the target audience and their motivations.What constitutes a meaningful