Therma Bright Nears Approval for Permanent Insurance Codes, Paving Way for Major Growth

Therma Bright (TSXV:THRM) (OTCQB:TBRIF), known for its innovative diagnostic and medical device technologies, is poised for significant growth as it nears the approval of a new HCPCS Level II code for its Venowave device. This development is set to streamline the reimbursement process, making it easier for both Medicare and Medicaid, as well as private insurers, to cover the device.

The Venowave is a compact, battery-operated peristaltic pump designed to improve circulation in the extremities. It is FDA approved for 10 medical indications, including the management of Post Thrombotic Syndrome and the prevention of Deep Vein Thrombosis (DVT). The device's innovative technology generates a wave-form motion that increases the upward displacement of venous and lymph fluid when worn below the knee and strapped to the calf.

A new HCPCS code, which is expected to be issued after the biannual CMS meeting in May 2024, will enable standardized billing and reimbursement for the Venowave. This is a significant improvement over the current E0676 miscellaneous code, which offers no set reimbursement and defaults to $0 unless a detailed package of medical necessity is submitted. This bureaucratic hurdle has deterred physicians from prescribing the device, as they cannot assure their patients that it will be covered by insurance.

The new code will also include a preliminary Medicare Payment determination, setting fixed reimbursement rates at $1,199 USD for outright purchases and $78.05 USD per month for rentals up to 13 months. These rates are favorable considering the manufacturing costs of the Venowave, and the new coding will also simplify the reimbursement process for private insurers like Blue Cross Blue Shield and UnitedHealth Group.

This development is crucial for the approximately 25 million people in the United States suffering from Chronic Venous Insufficiency, many of whom go untreated due to the high costs and cumbersome nature of existing treatments. The Venowave offers a portable and effective solution, combining the benefits of sequential compression without the need for tubes or wires, allowing patients to remain ambulatory during treatment.

Therma Bright is also working on securing reimbursement for DVT prevention through private insurers, which do cover such preventive measures. The issuance of the new HCPCS code will facilitate access to the Venowave for patients with private health insurance, opening up another substantial market.

Therma Bright has already prepared for the anticipated demand by maintaining an inventory of over 2,000 Venowave units, ready to be distributed upon the issuance of the new code. The company conservatively estimates moving 500-1,000 units per month thereafter, which would significantly boost its revenue given the high margins on the product.

In addition to the Venowave, Therma Bright's portfolio includes respiratory health products like the Digital Cough Test (DCT) app, developed in collaboration with AI4LYF. The app uses AI to diagnose respiratory diseases from cough sounds and is currently seeking 513g FDA clearance for Remote Therapeutic Monitoring (RTM) reimbursement. The company also offers consumer health products targeting pain relief, cold sore prevention, and insect bite relief.

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