CMS rate cuts for Abiomed Impella not as bad as expected

CMS will pay 11% less for the tiny Impella heart pump made by Abiomed (NSDQ:ABMD) during the upcoming federal fiscal year — but the reduction is better than the 24% cut originally proposed.
For the federal fiscal year ended Sept. 30, 2021, the rate for uni-ventricular Impella percutaneous insertion will be $71,950, down from the previous $80,650.
Analysts at Jefferies in a note today said they expect the impact on utilization to be minimal.
CMS acknowledged the magnitude of the cut it originally proposed, according to the Jefferies analysts. They added that the largest healthcare payer in the U.S. is looking at fixes going forward to stabilize Impella reimbursement.
ABMD shares are down 4.5% to $298.73 apiece in morning trading today. MassDevice’s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, is down 2.3%.
Original Article: (https://www.massdevice.com/cms-rate-cuts-for-abiomed-impella-not-as-bad-as-expected/)