STRATA Skin Sciences Announces Initiative to Expand Treatment Coverage
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Insights
The initiative by STRATA Skin Sciences to expand insurance coverage for treatments of various dermatologic conditions is a strategic move that could potentially alter the landscape of dermatologic care. By advocating for broader CPT code coverage, the company is addressing a critical barrier to patient access—insurance reimbursement. This not only has the potential to increase utilization of STRATA's phototherapy treatments but also aligns with broader healthcare trends emphasizing patient-centered care and access to necessary treatments.
From a policy perspective, the engagement with governmental relations efforts signifies an active approach to influence healthcare policy. If successful, this could set a precedent for other medical technology companies to follow, potentially leading to a more favorable reimbursement environment. This is particularly important for conditions like vitiligo and atopic dermatitis, which have significant patient populations and have historically faced challenges in insurance coverage.
The clinical importance of expanding coverage for phototherapy treatments, such as those indicated by CPT codes 96920, 96921 and 96922, cannot be overstated for patients with conditions like vitiligo and atopic dermatitis. Phototherapy is a well-established treatment modality with decades of clinical use and a strong evidence base supporting its efficacy. However, the lack of insurance coverage can be a significant barrier to treatment access.
STRATA's initiative to enhance coverage could lead to improved patient outcomes by making these treatments more accessible. Additionally, the emphasis on patient advocacy and the mobilization of a large patient database for support letters underscores the importance of patient engagement in driving policy changes that directly affect their care options.
STRATA's initiative is likely to have a favorable impact on its business by potentially increasing the demand for its phototherapy treatments. Expanding insurance coverage could lead to higher provider reimbursement rates, which would incentivize healthcare providers to adopt STRATA's technologies. This could drive revenue growth for the company and potentially improve its position in the stock market.
Moreover, the proactive approach to patient engagement and advocacy could enhance the company's brand reputation and loyalty among its patient base. In the long term, if STRATA successfully expands insurance coverage, it could strengthen its competitive edge in the dermatology space and possibly attract interest from investors who prioritize companies with growth potential driven by policy and market changes.
HORSHAM, Pa., March 07, 2024 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (“STRATA” or the “Company”) (NASDAQ: SSKN), a medical technology company dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today announced an initiative aimed at expanding insurance coverage for essential treatments for conditions such as mycosis fungoides, lichen planus, alopecia areata, and cutaneous T-Cell lymphoma (CTCL), with an initial targeted focus on expanding coverage for vitiligo and atopic dermatitis, skin diseases effecting up to 3 and 16 million people in the United States respectively1. The Company is leveraging its extensive patient database and engaging in targeted governmental relations efforts, this initiative focuses on broadening Current Procedural Terminology (“CPT”) code coverage to increase patient access to advanced treatments and enable higher provider reimbursement rates.
“Our focus extends beyond merely seeking expanded insurance coverage; we're advocating for the enhancement of patient quality of life and ensuring access to essential dermatologic treatments," stated Dr. Dolev Rafaeli, Vice Chairman and Chief Executive Officer of STRATA. "By encouraging our patients to voice their needs and by proactively collaborating with policymakers, we're dedicated to guaranteeing that each person can access the medically necessary care they require.” Dr. Rafaeli continued, “We are encouraged by our initial outreach effort to a segment of our patient database and are using those results to engage with our elected officials to help these individuals and others similarly situated.”
Building on the momentum of the healthcare industry's notable achievements in re-evaluating CPT codes, the Company is focused on expanding the coverage of phototherapy treatments under codes 96920, 96921, and 96922 which are uniquely dedicated to, and are reflective in value of excimer laser procedures for small, medium and larger affected skin area. Through a comprehensive direct-to-consumer outreach initiative, the Company intends to expand on its initial outreach efforts by leveraging its vast network of over 270,000 patients to broaden patient access to medically necessary treatments and equitable reimbursement rates that accurately reflect the proven value and effectiveness of phototherapy treatments.
Over the past two months, as part of this advocacy initiative STRATA has sent over 1,000 legislative support letters to congressional and senate delegates on behalf of its patients. Emphasizing the importance of this initiative and the critical role of phototherapy, Dr. Elisabeth G. Richard, Treasurer and Board of Directors of the Photodermatology Society and Assistant Professor of Dermatology at Johns Hopkins University School of Medicine, stated, "Vitiligo affects more than 1 in every 100 people. Phototherapy has been the cornerstone of therapy for decades and remains an indispensable part of current therapy. Reductions in insurance coverage for all modes of phototherapy instantly restrict access to this irreplaceable therapy for patients suffering from this chronic autoimmune condition.”
The STRATA team is committed to this cause and is actively engaging with multiple prominent patient advocacy societies and the broader dermatology community, to enhance patient access to XTRAC treatments.
About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company dedicated to developing, commercializing and marketing innovative products for the in-office treatment of various dermatologic conditions such as psoriasis, vitiligo, and acne. Its products include the XTRAC® excimer laser, VTRAC® lamp systems, and the TheraClear®X Acne Therapy System.
STRATA is proud to offer these exciting technologies in the U.S. through its unique Partnership Program. STRATA’s popular partnership approach includes a fee per treatment cost structure versus an equipment purchase, installation and use of the device, on-site training for practice personnel, service and maintenance of the equipment, dedicated account and customer service associates, and co-op advertising support to help raise awareness and promote the program within the practice.
Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to launch and sell an acne treatment device and to integrate that device into its product offerings, the Company’s ability to develop, launch and sell products recently acquired or to be developed in the future, the Company’s ability to expand insurance coverage, develop social media marketing campaigns, direct to dermatologist marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory, adverse market conditions or supply chain interruptions resulting from the coronavirus and political factors or conditions affecting the Company and the medical device industry in general, future responses to and effects of COVID-19 pandemic and its variants including the distribution and effectiveness of the COVID-19 vaccines, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all these forward-looking statements may prove to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The Company urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.
Investor Contact:
Rich Cockrell
CG Capital
Phone: +1 (404) 736-3838
sskn@cg.capital
1 JAMA Dermatol. 2022 Jan 1;158(1):43-50. doi: 10.1001/jamadermatol.2021.4724.
FAQ
What initiative did STRATA Skin Sciences, Inc. (SSKN) announce?
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Who stated the commitment to enhancing patient quality of life and ensuring access to essential care?
What treatments does STRATA aim to expand coverage for under CPT codes 96920, 96921, and 96922?
