NeuroStar TMS Patient Access Expands Through Lucet Health Policy Update

Rhea-AI Summary

Neuronetics, Inc. announced that Lucet Health has changed its criteria to increase access for patients with depression to receive transcranial magnetic stimulation (TMS), reducing the number of antidepressant medication attempts required prior to TMS eligibility. This policy update is effective as of February 1, 2024, and impacts approximately 9 million covered lives. Neuronetics also reported momentum for favorable TMS coverage changes through three additional payors, positioning the company as the only TMS company in the industry with a dedicated health policy team.

Insights

Medical Research Analyst

The recent policy update by Lucet Health to reduce the number of required antidepressant medication attempts before patients with depression are eligible for transcranial magnetic stimulation (TMS) treatments represents a significant shift in mental health treatment protocols. This decision could potentially increase the patient base for Neuronetics' NeuroStar Advanced Therapy, as it lowers the barrier to accessing what is considered a more advanced treatment option compared to traditional pharmacotherapy.

From a medical research perspective, the implication of this policy change suggests that there is growing recognition of the efficacy of TMS in treating depression, particularly for those who have not responded to initial antidepressant treatments. By reducing the number of medication trials from four to two, patients can receive TMS therapy sooner, which may lead to better outcomes given the time-sensitive nature of treating depressive episodes.

Furthermore, this change could influence future clinical research and development strategies within the neurohealth field. Companies may be encouraged to invest more in similar therapies, anticipating a larger market and potential for adoption due to eased access. However, it's crucial to monitor patient outcomes and cost-effectiveness of TMS as it becomes more widely used.

Healthcare Economist

The policy change by Lucet Health has significant economic implications for Neuronetics and the broader healthcare market. By increasing the accessibility of TMS, Neuronetics may see an increase in demand for its NeuroStar Advanced Therapy. This could result in higher revenue streams and potentially improve the company's market share in the neurohealth technology sector.

From a healthcare economics perspective, earlier access to TMS could lead to reductions in the overall cost of treatment for depression by potentially decreasing the reliance on long-term pharmacotherapy, which can be costly and less effective for some patients. Additionally, the policy change may lead to a decrease in indirect costs associated with untreated or poorly managed depression, such as lost productivity and increased healthcare utilization.

It is essential to consider that while the policy change is beneficial for Neuronetics, it could also increase financial pressures on insurance providers and the healthcare system if not managed appropriately. The long-term economic impact will depend on the balance between the cost of TMS treatments and the savings from improved patient outcomes and reduced use of other healthcare services.

Market Research Analyst

Neuronetics' announcement regarding the policy change by Lucet Health could be a strategic move in the competitive landscape of medical technology for neurohealth disorders. By being the only TMS company with a dedicated health policy team, Neuronetics demonstrates a proactive approach in advocating for health policy changes that benefit their product's market penetration.

The expansion of TMS criteria is likely to augment the adoption rate of NeuroStar Advanced Therapy. Market research would need to assess the potential increase in the target demographic and how this might translate into sales growth. It's also important to evaluate how competitors might respond to these policy changes and whether they will seek similar accommodations for their TMS products.

Understanding the broader market dynamics, including the rate at which insurance carriers adopt these changes and the willingness of healthcare providers to integrate TMS into their treatment protocols, will be critical in forecasting Neuronetics' performance. Additionally, monitoring the company's ability to scale production and meet increased demand will be a key factor in their continued success.

Criteria Change Reduces Requirements for Treatment Accessibility

MALVERN, Pa., Feb. 06, 2024 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM), a medical technology company focused on designing, developing, and marketing products that improve the quality of life for patients who suffer from neurohealth disorders, announced criteria changes by Lucet Health that increase access for patients with depression to receive transcranial magnetic stimulation (TMS), such as NeuroStar^® Advanced Therapy. The policy update reduces the number of antidepressant medication attempts from four down to two prior to TMS eligibility.

“I am pleased to witness the collective efforts leading to improved access to mental health coverage,” stated Keith J. Sullivan, President and CEO of Neuronetics, Inc. “We commend Lucet Health for recognizing the importance of ensuring that individuals can access proven treatments like NeuroStar earlier in their path towards wellness.”

Lucet Health is a behavioral health organization that works with large insurance carriers across the country. Its policies impact approximately 9 million covered lives. The updated TMS criteria are effective as of February 1, 2024.

Neuronetics also recently announced continued momentum for favorable TMS coverage changes through three additional payors. Neuronetics is the only TMS company in the industry with a dedicated health policy team that partners with both providers and payors to advocate for health policy changes.

For more information about NeuroStar TMS Therapy, visit www.NeuroStar.com.

About Neuronetics
Neuronetics, Inc. believes that mental health is as important as physical health. As a global leader in neuroscience, Neuronetics is redefining patient and physician expectations with its NeuroStar Advanced Therapy for Mental Health. NeuroStar is a non-drug, noninvasive treatment that can improve the quality of life for people suffering from neurohealth conditions when traditional medication hasn’t helped. In the United States, NeuroStar is FDA-cleared for adults with major depressive disorder (MDD), as an adjunct for adults with obsessive-compulsive disorder (OCD), and to decrease anxiety symptoms in adult patients with MDD that may exhibit comorbid anxiety symptoms (anxious depression). NeuroStar Advanced Therapy is the leading transcranial magnetic stimulation (TMS) treatment for MDD in adults with over 5.9 million treatments delivered. NeuroStar is backed by the largest clinical data set of any TMS system for depression, including the world’s largest depression Outcomes Registry. Neuronetics is committed to transforming lives by offering an exceptional treatment that produces extraordinary results. For safety and prescribing information, www.NeuroStar.com.

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FAQ

What is the impact of the criteria changes announced by Lucet Health on Neuronetics, Inc. (STIM)?

The criteria changes increase access for patients with depression to receive transcranial magnetic stimulation (TMS) and reduce the number of antidepressant medication attempts required prior to TMS eligibility.

When will the updated TMS criteria be effective?

The updated TMS criteria are effective as of February 1, 2024.

How many covered lives are impacted by the policies of Lucet Health?

The policies of Lucet Health impact approximately 9 million covered lives.

What sets Neuronetics, Inc. apart from other TMS companies in the industry?

Neuronetics, Inc. is the only TMS company in the industry with a dedicated health policy team that partners with both providers and payors to advocate for health policy changes.