How are reprocessed devices reimbursed?
The Centers for Medicare and Medicaid Services (CMS) supports FDA’s view that reprocessed devices are substantially equivalent to new so there is no change in reimbursement. There is no difference in reimbursement for a procedure using a reprocessed device versus a procedure that uses a new device. Most insurance companies and Medicare use a diagnostic-base payment system, providing a fixed reimbursement amount for the hospitals according to patient diagnosis. The hospitals then utilize procedures and equipment they deem as “best practices” within that reimbursement framework – including approved reprocessed medical devices.