iRhythm® Technologies Comments on the Announcement of the Medicare Physician Fee Schedule Final Rule Released by the Centers for Medicare and Medicaid Services for Calendar Year 2023

Rhea-AI Summary

iRhythm Technologies (NASDAQ:IRTC) reacted to the CMS announcement of the Medicare Physician Fee Schedule Final Rule for 2023. A key highlight is the new national pricing for certain CPT codes, with the price for the external ECG patch (SD339) increasing from $245.69 to $260.35. This positive adjustment may enhance iRhythm's reimbursement for its Zio® XT service, which relies on CPT codes 93243 and 93247. iRhythm will comment further once the Final Rule is published in the Federal Register.

Positive

• Increased pricing for SD339 from $245.69 to $260.35 may improve reimbursement rates.
• National pricing established for CPT codes could provide stability in revenue.

Negative

• None.

SAN FRANCISCO, Nov. 02, 2022 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ:IRTC), a leading digital health care company focused on creating trusted solutions that detect, prevent, and predict disease, today commented on the recent announcement from the Centers for Medicare and Medicaid Services (“CMS”) that it has issued the Medicare Physician Fee Schedule (MPFS) Final Rule for Calendar Year 2023 (the “Final Rule”). On November 1, 2022, CMS stated in its fact sheet that the Final Rule includes payment policies, payment rates and other provisions for services furnished on or after January 1, 2023 (“CMS Fact Sheet”).  

In the advanced copy of the Final Rule linked in the CMS Fact Sheet, CMS commented that the Final Rule will include national pricing for Current Procedural Terminology (“CPT”) codes 93241, 93243, 93245, and 93247 along with an updated price of $260.35 for the extended external ECG patch, medical magnetic tape recorder (SD339) supply item. The SD339 supply item price of $260.35 in the Final Rule is a positive improvement from the $245.69 price that CMS included in their Proposed Rule issued in July 2022. iRhythm is waiting for the Final Rule and accompanying addenda to be published on the Federal Register before providing further comments on the national pricing for CPT codes 93241, 93243, 93245, and 93247 and its potential impact to its business.

For reference, iRhythm primarily relies on the following two CPT codes to seek reimbursement for its Zio^® XT service: codes 93247 (for wear-time of greater than 7 days and up to 15 days) and 93243 (for wear-time of greater than 48 hours and up to 7 days).

About iRhythm Technologies, Inc.
iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include those relating to the anticipated national pricing for the CPT codes primarily relied upon for the Company’s Zio XT services. Such statements are based on management’s current assumptions that involve risks and uncertainties, and actual outcomes and results could differ materially from those anticipated. The risks and uncertainties that may cause actual results to differ materially from current expectations, many of which are beyond our control, include risks more fully described in iRhythm’s Quarterly Report on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on August 5, 2022. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. Except as required by law, iRhythm assumes no obligation to update any such forward-looking statement after the date of this release.

Investor Relations Contact
Stephanie Zhadkevich
(919) 452-5430
stephanie.zhadkevich@irhythmtech.com

iRhythm Media Contact
Morgan Mathis
(310) 528-6306
irhythm@highwirepr.com

FAQ

What did iRhythm Technologies state about the Medicare Physician Fee Schedule Final Rule for 2023?

iRhythm commented on the positive adjustment in pricing for the external ECG patch (SD339) from $245.69 to $260.35.

How might the new CPT codes impact iRhythm's revenue?

The newly established national pricing for CPT codes 93243 and 93247 could enhance reimbursement for iRhythm's Zio XT services.

When will iRhythm provide further comments on the Medicare ruling?

iRhythm plans to comment further once the Final Rule is published in the Federal Register.

What is the significance of the updated CPT code pricing for iRhythm?

The updated pricing may improve financial outcomes for iRhythm by increasing reimbursement for its services.