CMS To Boost Medicare New Tech Add-On Payments To 65% – But Industry Wants More

Industry groups AdvaMed and the Medical Device Manufacturers Association (MDMA) thanked the US Medicare agency CMS for its recent proposal to allow coverage for new breakthrough devices. But both said a CMS proposal for new technology add-on payments in fiscal year 2020 Inpatient Prospective Payment System (IPPS) rules to boost rates for new devices from 50% to 65%, should actually be an 80% increase.

Medicare, Health Concept

The US Centers for Medicare and Medicaid Services (CMS) should have permitted new technology add-on payments of 80%, not 65%, industry groups commenting on significant changes to reimbursement rates in the CMS 2020 Inpatient Prospective Payment System (IPPS) say.

“We greatly appreciate CMS’ decision to increase the add-on payments for approved technologies. However, we believe that the add-on payment level for approved NTAPs should be increased to 80% of the difference between the standard MS-DRG (Medicare Severity Diagnosis Related Groups) payment and the cost of the procedure with the new technology,” Don May, AdvaMed’s executive VP for payment and health-care delivery, commented

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