Lifeward CEO updates shareholders on Exoskeleton and Medicare progress

“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 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 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 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.”