Digital Therapeutics Sector Sees Billing Codes as Key to Breaking Free of Reimbursement Rut
On August 19, 2024, it was announced that Medicare's physician fee schedule will now include billing codes for digital therapeutics for the first time, a significant development for the sector. The Centers for Medicare and Medicaid Services (CMS) has proposed three codes specifically for FDA-cleared digital mental health treatment devices, marking a shift in federal recognition of these technologies. This change is expected to address some of the reimbursement challenges that have plagued digital therapeutics, as seen with companies like Pear Therapeutics and Better Therapeutics, which faced difficulties securing payer coverage.
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