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This excerpt taken from the EYE 10-K filed Mar 1, 2007. Governmental
Reimbursement. In the United States, a significant percentage
of the patients who receive our IOLs are covered by the federal Medicare
program. When a cataract extraction with IOL implantation is performed in an
ambulatory surgical center, Medicare provides the ambulatory surgical center
with a fixed facility fee that includes a recommended $150 allowance to cover
the cost of the IOL. After the Centers for Medicare and Medicaid Services (CMS)
(formerly the Health Care Financing Administration), awarded “new technology
intraocular lens” status to our Tecnis IOL in 2006, the reimbursement rate for Tecnis IOLs implanted in ambulatory
surgical centers increased an additional $50 until February 2011. When the
procedure is performed in a hospital outpatient department, the hospital’s
reimbursement is based on a prospective payment that includes payment for the
IOL. The allowance is the same for all
IOLs.
At the end of 2003, Congress enacted the Medicare Prescription Drug Improvement and Modernization Act of 2003. Among other things, this 1egislation requires CMS to establish a new Medicare payment system for services performed in ambulatory surgical centers. This new payment system is expected to be effective January 1, 2008. At this time, it is not possible to determine how this new payment system could affect our revenues or financial condition. In addition, if implemented, price controls or other cost-containment measures could materially and adversely affect our revenues and financial condition. We cannot predict the likelihood or pace of any other significant legislative or regulatory action in these areas, nor can we predict whether or in what form health care legislation being formulated by various governments will be passed. Medicare reimbursement rates are subject to change at any time. We also cannot predict with precision what effect such governmental measures would have if they were ultimately enacted into law. In general, however, we believe that legislative and regulatory initiatives will likely continue, and the adoption of new payment or coverage policies can have some impact on our business. This excerpt taken from the EYE 10-K filed Mar 14, 2006. Governmental
Reimbursement. In the United States, a significant percentage
of the patients who receive our IOLs are covered by the federal Medicare
program. When a cataract extraction with IOL implantation is performed in an
ambulatory surgical center, Medicare provides the ambulatory surgical center
with a fixed facility fee that includes a recommended $150 allowance to cover
the cost of the IOL. After the Centers for Medicare and Medicaid Services (CMS)
(formerly the Health Care Financing Administration), awarded “new technology
intraocular lens” status to our Tecnis IOL in 2006, the reimbursement rate for Tecnis IOLs implanted in ambulatory
surgical centers increased to $200 until February 2011. When the procedure is
performed in a hospital outpatient department, the hospital’s reimbursement is
based on a prospective payment that includes payment for the IOL. The allowance
is the same for all IOLs.
At the end of 2003, Congress enacted the Medicare Prescription Drug Improvement and Modernization Act of 2003. Among other things, this 1egislation requires CMS to establish a new Medicare payment system for services performed in
10
ambulatory surgical centers. This payment system is to be effective no sooner than January 1, 2006, and no later than January 1, 2008. At this time, it is not possible to determine how this new payment system could affect our revenues or financial condition.
In addition, if implemented, price controls or other cost-containment measures could materially and adversely affect our revenues and financial condition.
We cannot predict the likelihood or pace of any other significant legislative or regulatory action in these areas, nor can we predict whether or in what form health care legislation being formulated by various governments will be passed. Medicare reimbursement rates are subject to change at any time. We also cannot predict with precision what effect such governmental measures would have if they were ultimately enacted into law. In general, however, we believe that legislative and regulatory initiatives will likely continue, and the adoption of new payment or coverage policies can have some impact on our business.
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