CMS Proposes Reduced Reimbursements for Cardiac Devices
CMS in a report released on Wednesday proposed a rule that would reduce Medicare reimbursements for implanted cardiac devices, such as stents, defibrillators and pacemakers, the Wall Street Journal reports.
The rule could reduce reimbursements for stents by more than 30% and could reduce reimbursements for defibrillators by as much as 20%, according to Morgan Stanley analyst Glenn Reicin. In addition, the rule would include a smaller reduction in reimbursements for orthopedic products, such as replacement hips and knees.
CMS proposed the rule to close loopholes used by specialty hospitals -- such as cardiac, orthopedic and surgical facilities -- and reduce costs. By 2008, the proposed rule would reduce reimbursements by 11.7% for cardiac hospitals, 9.4% for orthopedic hospitals and 7.2% for surgical hospitals (Kamp/Koons, Wall Street Journal, 4/14).
CMS will accept public comments on the proposed rule for 60 days (McCartney, St. Paul Pioneer Press, 4/14). CMS likely will implement a final rule in October (Kamp, Dow Jones Newswires, 4/13).
According to the Boston Globe, hospitals and medical device companies likely will "lobby heavily for modifications, and some of the cuts are likely to be less dramatic when the final version is published in August."