Centers for Medicare & Medicaid Services (CMS) issued a new proposed rule to update payment policies and rates on or after January 1, 2021. The rule builds on the Advancing American Kidney Health Initiative Executive Order for home dialysis and would increase the bundled dialysis payment, which in turn would expand a financial incentive to encourage innovation of new home dialysis equipment.

The US Social Security Act stipulates that Medicare payments be made to service providers under a method of reimbursement called PPS (Prospective Payment System), where the respective payment amounts are derived according to a classification system. For renal dialysis services, the ESRD PPS is applied, which provides a bundled per treatment payment to ESRD facilities for dialysis services provided either in inpatient or outpatient settings, including drugs, laboratory services, supplies and other costs related to the service provision. The ESRD PPS further includes an add-on payment adjustment, the TPNIES (Transitional Add-on Payment Adjustment for New and Innovative Equipment and Supplies), which is intended to support ESRD facilities in the uptake of new and innovative renal dialysis equipment and supplies. As of July 6, 2020, the eligibility criteria and determination process for the TPNIES have been updated.

Under the ESRD PPS for CY 2021, Medicare expects to pay $10.3 billion to approximately 7,400 ESRD facilities for the costs associated with furnishing renal dialysis services.

"This proposed update is a very positive prospect since if the Redsense equipment is considered eligible, ESRD facilities will receive TPNIES payments for furnishing it," says Patrik Byhmer, CEO of Redsense Medical AB. "The process will take at least 12 months but we are already working with patient associations and business partners to provide comments which we can leverage in our application once the rule comes into effect."

For more information, please contact:

Patrik Byhmer, CEO Redsense Medical AB (publ)

Phone: +46 35 10 60 30

info@redsensemedical.com  

www.redsensemedical.com

ABOUT REDSENSE MEDICAL

Redsense Medical is a corporate group with operations mainly in Europe and the United States. The company has developed the Redsense System, an innovationused for monitoring and alarm in the case of blood leakage in connection with a hemodialysis treatment. Redsense Medical solves one of the most serious remaining safety problems within hemodialysis – to quickly detect Venous Needle Dislodgement and catheter leakage to minimize blood leakage. The system consists of a patented fiber optic sensor, designed for either venous needle or central venous catheter, which is connected to an alarm unit. From the very start, the development of the company's technology has been based on the demands and safety requirements of healthcare providers in the dialysis sector.