Increased Barostim Reimbursement in the HOPPS Causes CVRx Stock to Rally
11-3-23 (by: Scott Gleason) CVRx stock has rallied following its announcement that the Centers for Medicare and Medicaid Services (CMS) has increased reimbursement for the Barostim implant procedure in the 2024 Medicare Hospital Outpatient Prospective Payment System (OPPS) final rule. In the 2024 OPPS final rule, CMS made the decision to reassign Barostim to New Technology APC 1580. This reassignment signifies a substantial increase in average payment, with the amount set at $45,000. This change will officially take effect on January 1, 2024. In comparison, the previous year had Barostim assigned to APC 5465, which featured an average payment amount of $29,000. Furthermore, a Transitional Pass-Through Payment was set to expire on December 31, 2023.
The Barostim system is a therapy designed to help patients with heart failure whose condition is not well-managed by other treatments. It involves the implantation of a device that electrically stimulates the baroreceptors in the carotid arteries, which can help regulate blood pressure and improve heart function. The device has been clinically validated to improve outcomes in heart failure patients. This was demonstrated in the BeAT-HF (Baroreflex Activation Therapy for Heart Failure) trial, a prospective, randomized, controlled trial, in which patients were randomized to receive Baroreflex Activation Therapy (BAT) plus optimal medical management or optimal medical management alone. The study consisted of 245 patients followed for 6 months. Barostim was found to be safe and demonstrated significant improvements in patients’ quality of life, exercise capacity, and NT-proBNP levels compared to the control group. Additionally, the major adverse neurological or cardiovascular events rate was notably low, confirming the safety and effectiveness of BAT in heart failure patients.
Nadim Yared, President and CEO of CVRx, expressed his gratitude for the consideration shown by CMS regarding the resource requirements associated with the Barostim implant procedure. He emphasized that this reassignment to APC 1580 would significantly facilitate improved access to therapy for Medicare patients grappling with heart failure. The key factor enabling this enhanced access is the substantially higher reimbursement for the procedure.