STRATA Skin Sciences Announces CMS Recognition of Expanded CPT Codes for Inflammatory and Autoimmune Dermatologic Conditions with Company Anticipating Wider Excimer Adoption Ahead Of 2027 CPT Expansion

Rhea-AI Summary

STRATA Skin Sciences (NASDAQ: SSKN) announced that CMS finalized continued Medicare coverage and a ~3.5% payment increase for excimer laser CPT codes 96920–96922 for CY2026, and recognized an upcoming expansion of those code descriptors to include inflammatory and autoimmune conditions effective Jan 1, 2027. CMS described the excimer laser as a well-established treatment and said it will review clinical and real-world cost data during CY2027 rulemaking alongside AMA CPT revisions and RUC recommendations. STRATA reported a partner network of > 840 clinics and several hundred device owners (XTRAC and Pharos) and said it is engaging commercial payers to encourage continued excimer exclusivity beyond 2027.

Positive

• CMS confirmed continued Medicare coverage for CPT 96920–96922
• Payment increase of approximately 3.5% for CY2026
• CMS recognition of CPT descriptor expansion effective Jan 1, 2027
• Existing partner network of > 840 clinics and several hundred devices

Negative

• CPT descriptor expansion effective Jan 1, 2027 could change coding scope
• CMS will review stakeholder data in CY2027, creating outcome uncertainty

Higher reimbursement, regulatory clarity, and acknowledgment of future indication expansion expected to reinforce physician confidence and support continued expansion

HORSHAM, Pa., Nov. 06, 2025 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ: SSKN), a global leader in excimer laser therapy for inflammatory and autoimmune dermatologic diseases, today announced that the Centers for Medicare & Medicaid Services (CMS) has issued its CY 2026 Medicare Physician Fee Schedule Final Rule confirming continued reimbursement for excimer laser treatments under CPT^® codes 96920, 96921, and 96922, while recognizing the upcoming expansion of CPT code descriptors to include inflammatory and autoimmune skin conditions beyond psoriasis—effective January 1, 2027.

In the Final Rule, CMS recognized the excimer laser as a well-established treatment modality, affirmed continued coverage as well as increase in payment for calendar year (CY) 2026, and indicated it will review extensive clinical and real-world cost data submitted by STRATA and other stakeholders as part of CY 2027 rulemaking alongside the American Medical Association (AMA) CPT Editorial Panel revisions and the RUC’s recommendations. The final rule confirms that at-least until the CPT code language changes take effect on January 1, 2027, the current code family remains exclusive to excimer laser technology.

Strata directly and through advocacy groups is actively engaging commercial insurance providers to educate them on the upcoming changes and make sure the individual coverage policies will extend the excimer laser exclusivity as the only clinically proven technology far beyond 2027.

“We appreciate CMS’ recognition of upcoming indication expansion and the robust clinical and cost input data submitted by STRATA and the clinical community,” said Dr. Dolev Rafaeli, STRATA’s President and CEO. “This acknowledgment—and the CMS plan to incorporate these inputs in the 2027 rulemaking—marks an important step forward. This reinforces confidence in excimer laser procedure reimbursement, supports our network of over 840 partner clinics and the several hundred owners of XTRAC^® and Pharos^® (the only excimer laser devices available in the domestic market, both owned by STRATA) which are the immediate available source of expansion for the STRATA go-to-market strategy. The CMS decisions further strengthen our long-term strategy to expand adoption of the use of excimer laser procedures across immune-mediated skin diseases. We believe this ruling provides regulatory clarity and long-term tailwinds as we expand excimer utilization and accelerate physician adoption moving into 2026 and beyond. In the meantime, we remain focused on protecting patient access and supporting providers as we work toward expanded code descriptors, while maintaining ethical billing of these reimbursement codes.”

Key Takeaways

• Continued Medicare Coverage: CMS confirms ongoing reimbursement for excimer laser treatments under CPT 96920–96922, ensuring uninterrupted patient access
• Increased Reimbursement: The Final Rule increases 2026 payment for all three codes by approximately 3.5% versus 2025
• Excimer Laser Exclusivity: CPT 96920–96922 remain in effect and apply exclusively to excimer laser technology when applying for insurance reimbursement until at least the 2027 descriptor updates. This decision further supports STRATA’s position that no other technology, including solid-state lasers should be sold as reimbursable or ethically be billed for insurance reimbursement under these codes
• Recognition of Expanded Indications (2027): CMS acknowledges the AMA CPT Editorial Panel’s milestone May 2025 revisions broadening excimer laser procedure eligibility for reimbursement under the codes to additional inflammatory and autoimmune conditions (e.g., vitiligo, atopic dermatitis, alopecia areata), effective January 1, 2027
• Real-World Inputs Considered: CMS will evaluate stakeholder data on clinical outcomes, utilization, and practice expense as part of the CY 2027 process
  

Commitment to Patients and Providers

STRATA’s FDA-cleared and clinically proven XTRAC^® excimer laser delivers targeted 308-nm UVB therapy used by dermatologists to treat psoriasis, vitiligo, atopic dermatitis, and other inflammatory and autoimmune skin diseases. The Company will continue partnering with clinicians, patient advocates, and payers to ensure safe, effective, non-systemic treatment options remain available and appropriately recognized.

About STRATA Skin Sciences, Inc.

STRATA Skin Sciences is a medical technology company dedicated to developing, commercializing, and marketing innovative products for the in-office treatment of various dermatologic conditions, such as psoriasis, vitiligo, and acne. Its products include the XTRAC^® excimer laser, VTRAC^® lamp systems, and the TheraClear^®X Acne Therapy System.

STRATA is proud to offer these exciting technologies in the U.S. through its unique Partnership Program. STRATA’s popular partnership approach includes a fee per treatment cost structure versus an equipment purchase, installation and use of the device, on-site training for practice personnel, service and maintenance of the equipment, dedicated account and customer service associates, and co-op advertising support to help raise awareness and promote the program within the practice.

Safe Harbor

This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to launch and sell products recently acquired or to be developed in the future, the Company’s ability to develop social media marketing campaigns, direct to consumer marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory, adverse market conditions labor supply shortages, or supply chain interruptions resulting from fiscal, political factors, tariffs, international conflicts, responses, or conditions affecting the Company, the medical device industry and our customers and patients in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all these forward-looking statements may prove to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The Company urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contact:
CORE IR
516-222-2560
IR@strataskin.com

FAQ

What did CMS rule for excimer laser CPT codes 96920–96922 for CY2026 for SSKN?

CMS confirmed continued Medicare coverage and increased CY2026 payments by about 3.5% for CPT codes 96920–96922.

When will CPT code descriptors expand to include inflammatory and autoimmune conditions for SSKN?

The CPT descriptor expansion is effective January 1, 2027, per CMS acknowledgement of AMA CPT revisions.

How does the CMS decision affect STRATA’s market position (SSKN)?

CMS called excimer a well-established treatment, supporting reimbursement continuity and STRATA’s device-based go-to-market expansion.

Will CPT 96920–96922 remain exclusive to excimer technology for SSKN before 2027?

Yes—CMS confirmed the current code family applies exclusively to excimer laser technology at least until the 2027 descriptor updates take effect.

What further review did CMS commit to that could affect SSKN in 2027?

CMS said it will review clinical and real-world cost data submitted by STRATA and others as part of the CY2027 rulemaking process.

How large is STRATA’s clinical network relevant to the CMS decision (SSKN)?

STRATA reported a network of over 840 partner clinics and several hundred owners of XTRAC and Pharos devices.