CMS plans to cut reimbursement for cardiac devices

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The Centers for Medicare & Medicaid Services (CMS) has proposed a new rule that would diminish the amounts Medicare would reimburse for implanted cardiac devices, the Wall Street Journal reports.
CMS has said it believes the changes are necessary to close existing loopholes that are used by some cardiac, orthopedic and surgical specialty hospitals to bring down costs. If the new revised rule becomes a reality, reimbursements for stents could drop by 30 percent, defibrillators by 20 percent, and some orthopedic replacement products like hips and knees would also see a reduction in payments.
Obviously such a move has met with concerns as it would hit a highly profitable sector within the healthcare world.
Morgan Stanley analyst Glenn Reicin told the Journal that the changes are unlikely to “modify purchasing and demand characteristics of medical devices.” Reicin added that his firm believes “the changes will be scaled back and have little likelihood of implementation.”
CMS is accepting public comment on the proposed rule for the next 60 days. The organization has plans to implement the change in its final form by October.