GKOS - iRhythm jumps 11% after comments on proposed 2023 Medicare rates

iRhythm Technologies ( NASDAQ: IRTC ), a maker of electrocardiogram (ECG) monitoring products, added ~11% in the pre-market Friday after the company issued its comments on the Medicare reimbursement rates proposed for 2023.

The Centers for Medicare and Medicaid Services announced the proposed rule on Thursday, including payment rates for two code sets that the company uses to seek reimbursement for its Zio XT service, a device for long-term continuous monitoring.

iRhythm ( IRTC ) mainly depends on CPT codes 93247 and 93243 for reimbursement for its Zio XT product, which according to the company are likely to have $215 and $204 national payment rates under the proposed rule.

However, the company estimates that applicable payment rates for CPT codes 93247 and 93243 could range from $218 to $295 and $207 to $280, respectively, based on the proposed Geographic Practice Cost Index modifiers applicable for certain Medicare-enrolled health facilities.

Following a public comment period, the CMS is expected to release the final rule by early November for implementation on January 1.

Meanwhile, Citi thinks that the proposed rates could be incrementally positive for the stocks in its coverage, namely Glaukos ( GKOS ), Sight Sciences ( SGHT ), and iRhythm ( IRTC ).

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