A state board has approved a $546,055, seven-year tax credit for an expansion of CoverMyMeds LLC‘s Columbus office.
The Twinsburg, Ohio, company has developed Web- and phone-based tools that speed up and automate the submission of prior authorization requests to health insurance plans. Insurers require these requests and other coverage determination forms to be submitted after they reject a patient’s prescription.
Prior authorizationis a tool health plans use to help control costs and enhance patient safety.It’s most often used when a doctor has prescribed a medicine for which there’s no corresponding generic.
“The process can be very time-consuming and frustrating,” said Matt Scantland, one of three principals and co-founders of the company.
CoverMyMeds’ Columbus project involves the lease and renovation of 10,000 square feet of office space that would hold additional software development and customer support staff, according to Scantland.
The company also received a $100,000 grant from the state, which it will use to buy equipment and perform upgrades on its office space, Scantland said.
The expansion project, which is valued at $750,000, is expected to create 67 jobs and retain nine, according to a statement from the Ohio Department of Development.
The vast majority – -16 — of the company’s 19 employees work in the Columbus office, which focuses on software development and operations. The company’s two other principals besides Scantland — CEO Sam Rajan and Alan Scantland, Matt’s father — work in the Twinsburg office, whose focus is sales and marketing.
Launched in 2008, the company is hoping to ramp up growth after “thousand and thousands” of doctors and pharmacies have signed up for its service, Scantland said. CoverMyMeds provides its services to pharmacies and doctors for free. It makes its money from charging fees to drug manufacturers, which have an interest in increasing their sales by expediting the prior authorization process. Clients’ drug reps then promote CoverMyMeds’ service to doctors and pharmacies.
In July, the company received a $250,000 investment from Cleveland-based nonprofit economic development firm JumpStart Inc. CoverMyMeds is running off of revenues and isn’t actively seeking further investment, Scantland said.