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Invitae Inks National Provider Agreement With Humana

NEW York (GenomeWeb) – Invitae has signed a national provider agreement for lab services with insurer Humana, making steady progress toward its goal of signing similar deals with all major private insurers by the end of 2016.

According to an 8-K filing with the US Securities and Exchange Commission, the contract will go into effect on Dec. 1. 

The company recently announced a similar deal with UnitedHealthcare that starts Jan. 1, and with several Anthem plans that are slated to take effect Nov. 1. Invitae's contract with Aetna became effective Aug. 15. 

In a note to investors, Cowen and Company analyst Doug Schenkel estimated that these contracts — as well as several others the company has recently inked with various payors — add up to 165 million lives now covered for Invitae's services.

"Over the last few quarters, management has reiterated its target of signing all major private payers by the end of 2017," Schenkel wrote. "With the addition of another major private payer today, this goal seems increasingly likely."

Part of Invitae's success in this regard may be due to its test pricing structure — the list price for its genetic testing panels for a particular disease category (i.e. oncology, neurology, cardiology) is $1,500, but the firm charges $950 to institutions under contract and $475 to patients who pay out of pocket because they lack insurer coverage.