Insurers Initiate Preauthorization Programs for Genetic Tests by Ken_Powell
In an effort to control the rapidly escalating costs and inappropriate use of expensive genetic tests, Cigna (NYSE: CI) has implemented a program requiring genetic counseling and pre-authorization for select genetic tests. Other insurers such as Aetna have also instituted such programs after studies have shown that up to 50% or more of the genetic tests ordered by physicians.
The market for these and other esoteric tests is already larger and expected to become the largest segment of the $52 billion dollar global In Vitro Diagnostic (IVD) industry. Back in 2010, United health (NYSE: UNH) conducted a study that found that spending on genetic testing was approximately $5 billion annually. United health forecasted that by 2020, annual spending on genetic testing would reach $25 billion at its current growth rate. Since the overall IVD market is growing at 6-7% per year, the payers in this space saw a need to curb the unrestrained growth of expensive genetic testing.
For more information on the strategies employed by payers and users of genetic tests, the regulatory and reimbursement issues surrounding them and companies competing in this high growth market segment, please contact me through Zintro and schedule an individual consult today.