Google Ventures-backed Oration launches service to help employees save on meds

By Aditi Pai
12:29 pm
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Foster City-based Oration has launched its mobile offering that helps employees save money on prescriptions.

Oration also announced that last year, it raised $11.2 million from DFJ Venture, Andreessen Horowitz, Google Ventures, Chicago Ventures, Data Collective, Work-Bench, Arsenal Venture Partners, and TiE Angels.

Oration CEO Pramod John previously served as McKesson’s VP of Strategy and Innovation.

The company’s service, called OrationRx, helps self insured employers save money by identifying the lowest-priced medications for employees. Oration said it has analyzed over $1 billion in prescription drug purchases to find users the best price for their medications.

“A few miles can mean the difference of dozens of dollars spent on the very same prescription, on the very same insurance plan, for the very same consumer,” Oration CEO Pramod John said in a statement. “And that delta is significantly higher for specialty drugs. There’s something very, very wrong with that picture, and Oration is committed to helping correct that." 

OrationRx is accessible via web — the company does not currently have a native iOS or Android app. The offering collects data on the user’s prescription history from their health plan and uses this data to show employees which prescriptions they can get for cheaper. 

If employees are paying out of pocket for the prescription, they cannot use the app, but they are able to call Oration and speak to a prescription savings specialist to find a better deal. Users on a copay plan will receive savings in the form of gift cards if they switch to a lower priced prescription, the company explains, because Oration can’t change the copay. Three weeks before an employees prescription runs out, they get an email from Oration so that they can refill the prescription and get their medication on time.

Oration’s offering is designed for self-insured employers and commercial accountable care organizations. The company’s current customers include Workday, Young’s Market, and Peterson CAT.

Another company working to provide users with cheaper prescriptions, RxRevu, raised $540,000 last year. RxRevu has catalogued thousands of generic drugs to help users save money when buying medications. At the time, RxRevu Founder Carm Huntress said the company had seen interest in the product from different healthcare sectors that deal with medication pricing including payors, providers, and healthcare app developers that focus on digital health tools and medication adherence apps.