New analysis suggests that higher-sensitivity testing could lower annual spending by more than $3 billion by reducing misdiagnosis.
Aces Diagnostics announced findings from an independent health economics analysis indicating that its higher-sensitivity Lyme disease diagnostic, LymeSeek, could reduce annual US healthcare costs related to the disease by 41.5%. The model suggests costs could drop from an estimated $7.65 billion to $4.48 billion annually.
The findings are scheduled for presentation by Holly Ahern, chief scientific officer at Aces Diagnostics, at the Association of Diagnostics and Laboratory Medicine (ADLM) 2026 Annual Meeting on July 27, 2026. According to the analysis, adopting a diagnostic test with higher sensitivity could reduce costs associated with misdiagnosis by nearly 80%.
Addressing Diagnostic Gaps
Lyme disease remains a diagnostic challenge with more than 500,000 estimated annual cases in the US. Standard two-tier serologic testing currently detects less than one-third of cases in the early stages of the disease. These limitations lead to frequent misdiagnosis, which is reported by 72% of patients in a large patient registry, allowing the disease to progress and increasing overall healthcare spending, according to the press release.
Aces Diagnostics collaborated with Boston Strategic Partners to develop a budget impact model comparing the current standard-of-care testing with a pathway using LymeSeek. The simulation utilized a national US patient cohort with assumptions validated by US payors.
“This data shows that a better diagnostic test will save people from years of misdiagnosis and worsening illness, which will decrease the economic burden of the disease by reducing costs for both individual patients and overall,” says Holly Ahern, chief scientific officer, Aces Diagnostics, in a release.
Economic Impact of Early Detection
The model highlights the economic difference between early and late-stage treatment. Treating localized disease costs approximately $1,377.88 per patient, while treating disseminated disease can cost up to $7,469.00 per patient. These figures underscore the financial value of accurate, early diagnosis in clinical settings.
Previous claims-based estimates had placed annual Lyme disease costs at up to $1.05 billion. However, Aces Diagnostics notes those figures were limited to high-incidence regions and did not account for untracked costs that follow a misdiagnosis.
The abstract for this study will be published in an ADLM journal following the presentation in Phoenix.
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