Lifeward CEO Issues Open Letter To Shareholders On Progress To Finalize Exoskeleton Medicare Payment Rate

Collaboration with CMS on final payment rate focuses on commercial transaction values for the latest generation of ReWalk Exoskeleton

 

CMS indicates that recently issued fee schedule which omitted exoskeletons can be updated after April 1 to include the final payment rate once it is established

Dear Shareholders,

As we communicated in Lifeward's March 1 press release, a final payment rate for exoskeletons was deferred in CMS' Healthcare Common Procedure Coding System ("HCPCS") final determination released on February 29, so the agency could obtain more information about pricing for our latest generation exoskeleton. As a result of the deferral, the payment rate is not included in CMS' April 2024 Durable Medical Equipment, Prosthetics, Orthotics and Supplies ("DMEPOS") fee schedule of Medicare payment rates that are effective April 1.   Since the HCPCS final determination was released, we have worked very closely with the agency to review the invoice and transaction information that we had previously submitted and provide supplemental data or explanations as additional questions arise.

While the latest development is a temporary delay, we are encouraged that CMS has indicated to us that once it determines a final payment rate, the agency can amend the April 2024 DMEPOS fee schedule so that the payment rate for exoskeletons can be established for the rest of 2024. This is important because it means that the establishment of a payment rate does not need to be delayed until the next HCPCS cycle six months from now. Our active engagement with CMS is ongoing and we work to establish the payment rate as soon as possible.

Until a payment rate for exoskeletons is added to the DMEPOS schedule, the Medicare Administrative Contractors ("MACs") still have authority to approve and pay claims on a case-by-case basis with discretion to set the payment rate. As we discussed on our Q4'23 earnings call, we have submitted 35 Medicare claims for payment which are eligible for reimbursement under the existing authority of the MACs. So far, one claim has been paid with the remaining ones in various stages of the claim review process. Lifeward intends to submit an additional 60-75 additional Medicare claims by the end of 2024 to accelerate its momentum in expanding access for qualified Medicare beneficiaries.

The Lifeward team is working tirelessly to make broader access to exoskeletons a reality for people with SCI. The health benefits and freedom that this technology provides to these individuals are well documented and truly life changing. We appreciate our investors for their shared vision about the transformation that this technology can bring to many lives. We also thank our investors for their patience because, as for many new technologies that drive revolutionary change, the path to achieving our goal is long with many challenges along the way.  

We have overcome the hurdles in the past and we are confident that, with the continued engagement on the issue by CMS, the resolution of the payment rate can reach a positive conclusion.

Sincerely,

Larry Jasinski

Lifeward CEO