BrainsWay Highlights Evernorth Move to Drop Prior Authorization for TMS Coverage
BrainsWay has highlighted a policy change by Cigna Group’s Evernorth Behavioral Health, effective March 6, 2026, which will remove prior authorization for transcranial magnetic stimulation (TMS) coverage for contracted providers. This decision is expected to broaden access to Deep TMS for patients with major depressive disorder and obsessive-compulsive disorder across 12 states and strengthen BrainsWay's position in the U.S. TMS market. An analyst has a Buy rating on BWAY stock with a target of $29.00.
How this was made
The 30-second read
Why it matters
This policy change is expected to positively influence TMS treatment adoption, benefiting companies like BrainsWay.
Market read
The policy change is a significant catalyst for the TMS market in the U.S., with potential positive implications for related stocks.
What to watch
Regulatory hurdles, reimbursement policies, and market saturation could limit the actual market expansion despite policy easing.
Background
Evernorth's decision to remove prior authorization is part of broader efforts to improve mental health treatment access.
Ticker impact
High relevance due to policy change impacting TMS market and BrainsWay's position.
Moderate upward price movement expected over the next 1-3 months.
The policy change directly reduces barriers to TMS treatment, expanding the market. BrainsWay's focus on TMS solutions positions it favorably to benefit from increased demand. The analyst's Buy rating and target price support a bullish outlook.
Market effects
Potential positive impact on the medical devices and healthcare services sectors, especially companies specializing in TMS technology.
Primarily affecting the U.S. healthcare market, with possible ripple effects in related regions where TMS is adopted.
Limited; the policy change is specific to certain U.S. states and does not directly influence global markets.
Counterpoint
The policy change may lead to increased competition among TMS providers, potentially pressuring margins for companies like BrainsWay.
Key entities
- Healthcare ProviderEvernorth Behavioral Health
A division of Cigna Group providing behavioral health services.
- Medical Device CompanyBrainsWay
Specializes in transcranial magnetic stimulation (TMS) solutions.
- Insurance CompanyCigna Group
Parent company of Evernorth, a major health insurer.
