Managing Diabetes: Is Silicon Valley the Solution?

By Emma Sandoe

According to a new study in JAMA, half of American adults either have diabetes or are pre-diabetic. The chronic condition costs the nation $245 billion annually in health care costs and lost wages. The diabetes technology industry has grown exponentially over the last several years, as the use of measuring and regulating devices has become the norm for monitoring and treating diabetes.

Last week, NPR examined how Google’s Life Sciences division is investing in the management of diabetes. Google’s Life Sciences division is part of its renamed company, Alphabet, and stems out of Google X — the same side of the company working on technology such as driverless cars and tracking the spread of disease outbreaks.

One of Google’s most anticipated products coming out of the new diabetes campaign is a contact lens that would be able to monitor glucose levels from water in the eye. This joint venture with Novartis was announced in January 2014 and is currently slated for research and developmental reviews.

Google is also developing a disposable bandage-like device that would monitor blood glucose levels and send data to Google servers in real time. This monitoring technology is designed to be a cheaper and more flexible alternative to current bulkier monitoring systems. The project is being completed in part with DexCom, a glucose-monitoring manufacturer. Interestingly, DexCom is also working on a project with Apple to have remote monitoring available on the Apple Watch.

It may be years before these products are approved and on the market, but this isn’t Google’s only venture into the health care market. This week it was announced that the company would invest $32.5 million into the startup health insurance company, Oscar. It is clear that Google has seen the potential revenue and health care improvements that their technology could add to the health care market.

Google’s growing role in the health sector represents Silicon Valley’s growing interest in devices and wearable technology. Much like blood glucose levels, the development of additional medical technology should continue to be monitored. With Google entering the medical device marketplace, this brings renewed attention to the Affordable Care Act’s medical device tax debate in Congress. The tax went into effect in 2013 and has been repealed by the House, but repeal votes have stalled it in the Senate. Policy makers opposing the tax often point to diabetes patients as examples to support their position that the medical device tax is burdensome on manufacturers and consumers. While it’s unclear whether Google will enter this policy debate, given Google’s reach and recent ranking as the third most valued brand in the US, if Google does enter the debate, lawmakers are likely to pay attention.