CMS Issues Preliminary Decision Against Paying for Depression Device

The Centers for Medicare and Medicaid Services announced that it didn’t see a clear benefit from the Cyberonics Vagus Nerve Stimulator for treating depression.

With the CMS decision, it is highly unlikely that Medicare would pay for the treatment of the Houston, TX-based medical device manufacturer.

The agency’s ruling is only preliminary and will not issue its final ruling on the device until May 7. However, a reversal is unlikely.

The Cyberonics device is implanted in the chest and transmits electric signals to nerves in the neck. Medicare already pays for its use to treat epilepsy but a decision to also reimburse for its treatment of depression would have been a windfall for the Houston-based company.