Myriad gains after CMS ups BRCA reimbursement

Myriad Genetics Inc. (NASDAQ:MYGN) gained $4.03 (11%) to $39.18 on Wednesday after disclosing in an SEC filing that CMS increased its reimbursement rate for genetic tests for breast cancer 1 early onset (BRCA1) and BRCA2. Medicare's reimbursement rate for Myriad's BRACAnalysis test is now $2,184 for tests ordered on or after April 1. Myriad markets the test to assess a woman's risk of developing breast or ovarian cancer based on detecting genetic mutations in the BRCA1 and BRCA2 genes. Myriad said the test's list price is $3,340, and average price for private insurance is $3,100.

Last year, CMS had set the reimbursement rate for BRACAnalysis to $1,438 after a June 2013 U.S. Supreme Court decision cleared the way for competing BRCA tests. The rate was nearly half of CMS's 2013 reimbursement rate of $2,795, which sent Myriad sliding $3.35 (14%) to $20.79 (see BioCentury, Jan. 6). ...