Hologic (HOLX) Acessa Procedure Gets Anthem Insurance Coverage
Hologic, Inc. HOLX recently announced that Anthem ANTM -- the second-largest health plan in the United States, updated its medical policy to cover Laparoscopic Radiofrequency Ablation (LAP-RFA), which includes the former’s Acessa procedure. This new coverage further validates laparoscopic radiofrequency ablation for women suffering from uterine fibroids, thereby expanding access to millions of women across the country. The updated policy provides a secure and effective substitute for millions of women who otherwise have to opt for unwanted hysterectomies.
The Acessa procedure is a minimally invasive, outpatient treatment for women with symptomatic uterine fibroids, and is clinically verified with long-term data as a safe substitute of hysterectomy and myomectomy. It provides minimal discomfort after the procedure and allows women to return to work in four to five days.
The recent development is expected to fortify and expand Hologic’s access in the women’s healthcare market.
Significance of the New Coverage
Anthem’s updated policy categorizes the use of laparoscopic or transcervical radiofrequency ablation as a treatment for symptomatic uterine fibroids as medically necessary when preservation of the uterus is desired and when the fibroids are less than 10 cm in diameter while uterine size does not exceed 16 weeks of gestation.
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Per Hologic’s management, Anthem’s updated policy will allow greater access to alternatives that support the strong preferences many women and their physicians have for secure and effective treatment that offers both symptom relief and uterine preservation.
Industry Prospects
Per Grand View Research, the global uterine fibroid treatment device market size was valued at $4.6 billion in 2019 and is expected to witness a CAGR of 9.5% by 2027. High prevalence of uterine fibroids among women across the world, along with patients’ preference for minimally-invasive procedures, is driving the market.
Recent Developments in Women Healthcare
In June 2021, Hologic announced that Cigna has updated its policy to cover the Acessa Laparoscopic Radiofrequency Ablation (Lap-RFA) as a medically necessary procedure. The new coverage further validates Lap-RFA as a standard of care for uterine fibroids, expanding access to millions of women across the country.
In May 2021, Hologic’s subsidiary, Biotheranostics, received broader Medicare coverage for its Breast Cancer Index test under an expanded Medicare Local Coverage Determination. Under the new criteria, the Breast Cancer Index test is now covered for post-menopausal women diagnosed with early-stage node-positive, non-relapsed, estrogen receptor and/or progesterone receptor positive HER2 negative breast cancer to help physicians manage patient’s treatment.
Price Performance
Shares of the company have gained 17.2% in a year’s time compared with the industry’s rise of 14.9%.
Zacks Rank and Key Picks
Currently, Hologic carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks from the broader medical space are Envista Holdings Corporation NVST and BellRing Brands, Inc. BRBR, both carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
BellRing Brands has an estimated long-term earnings growth rate of 22%.
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Hologic, Inc. (HOLX) : Free Stock Analysis Report
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