STRATA Skin Sciences Announces Historic Expansion of CPT Codes for Reimbursement of 308nm Excimer Laser Treatments, Unlocking Access for Millions with Inflammatory and Auto-Immune Skin Diseases
- Expansion of CPT codes significantly increases addressable market from 10M to 30M+ patients
- Elimination of prior authorization requirements streamlines reimbursement process
- Strong potential for revenue growth with 850 recurring revenue devices in the US
- Validation from leading medical experts and institutions
- Existing presence in 1,400 clinics with 4,000 medical providers indicates established market position
- Currently only 30% of procedures treat non-psoriasis conditions, indicating potential adoption challenges
- Success depends on effective market penetration and provider adoption of expanded indications
Insights
SSKN secures major reimbursement win, expanding addressable market from 10M to 30M+ patients through revised CPT codes.
This CPT code revision represents a transformative development for STRATA Skin Sciences' business model and patient access to care. The AMA's decision to expand CPT codes 96920-96922 beyond psoriasis to include various inflammatory and autoimmune skin conditions removes critical reimbursement barriers that have historically limited treatment access.
The coding change addresses a significant market inefficiency. Previously, while STRATA's XTRAC excimer laser was FDA-cleared for multiple conditions, the reimbursement framework lagged behind clinical practice. Non-psoriasis indications already account for 30% of current treatment volume despite requiring cumbersome pre-authorization processes. This disconnect created administrative burden for providers and access challenges for patients.
From a market perspective, this expands STRATA's addressable patient population from approximately 10 million to over 30 million, including 3 million vitiligo patients, 16.5 million with atopic dermatitis, and 4.6 million with alopecia areata. The timing is particularly advantageous as biologics and JAK inhibitors for these conditions carry substantial price tags and safety concerns.
For practitioners, this change streamlines workflow by reducing prior authorizations and claim denials, potentially driving broader adoption beyond the current 1,400 clinics and 4,000 providers using the technology. Under STRATA's recurring-revenue model, where the company owns approximately 850 devices in the U.S., increased utilization directly translates to revenue growth.
The reimbursement expansion validates STRATA's long-term clinical development strategy and positions excimer laser therapy as a cost-effective alternative to expensive pharmaceuticals, creating a win-win scenario for patients, providers, payers, and the company itself.
The expansion of CPT codes for 308nm excimer laser treatments represents a landmark clinical advancement in dermatologic care accessibility. This regulatory change acknowledges what dermatologists have known through clinical practice: excimer laser therapy's utility extends well beyond psoriasis.
What makes this particularly significant is the unique mechanism of action of the XTRAC system. Unlike broad-spectrum phototherapy, the 308nm excimer laser delivers highly targeted UVB radiation precisely to affected areas, sparing healthy skin. This targeted approach allows for higher therapeutic doses with fewer treatments while minimizing cumulative UV exposure and associated risks.
For conditions like vitiligo, XTRAC offers one of the few evidence-based repigmentation options without systemic side effects. In atopic dermatitis, targeted phototherapy can achieve rapid symptom improvement, particularly in recalcitrant cases. For alopecia areata patients, who have limited treatment options, excimer laser can stimulate follicular regrowth while avoiding immunosuppression.
The supporting statements from leading dermatologists Dr. Lebwohl, Dr. Grimes, and Dr. Richard underscore the therapy's clinical value. Their involvement in securing this CPT expansion reflects strong consensus within the dermatology community.
This change aligns treatment reimbursement with the substantial body of clinical evidence accumulated over two decades. With more than one million patients treated, the safety profile is well-established, offering a critical non-pharmacologic alternative in an era of rising concern about long-term immunomodulator effects.
For dermatologists managing increasingly complex patients with multiple comorbidities, having access to a targeted, localized treatment option without systemic effects fills a crucial therapeutic gap and represents meaningful progress in patient-centered dermatologic care.
HORSHAM, Pa., May 19, 2025 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (“STRATA” or the “Company”) (NASDAQ: SSKN), a medical technology company dedicated to advancing dermatologic care through innovation, announces that the American Medical Association (AMA) CPT Editorial Panel, in its May, 2025 summary of panel actions (May 2025: CPT® Editorial Summary of Panel Actions | AMA) has accepted revision to CPT codes 96920-96922, expanding reimbursement eligibility for excimer laser treatments to include multiple inflammatory and auto-immune skin conditions beyond their original psoriasis indication. This change reflects over 20 years of clinical evidence and real-world use of STRATA’s XTRAC® Excimer Lasers, a safe, effective, non-drug treatment for patients with chronic inflammatory and autoimmune skin diseases.
The updated CPT descriptor aligns the codes with current FDA clearances and commercial payer coverage guidelines. The changes are anticipated to reduce systemic denials and the need for prior authorizations. Further, the revised language now explicitly includes the treatment of inflammatory and autoimmune skin conditions, enabling coverage for conditions such as vitiligo, atopic dermatitis, mycosis fungoides, lichen planus, alopecia areata, and cutaneous T-cell lymphoma (CTCL). While currently with more than one million patients having been treated over the last 20 years, only
This change is expected to expand direct and clear reimbursement path and domestic market access from the roughly 10 million psoriasis patients covered today, to over 30 million potential patients, without the need to individually seek pre-determination of coverage, including:
- 3 million with vitiligo
- 16.5 million with atopic dermatitis
- 4.6 million with alopecia areata
STRATA has long advocated for expanding XTRAC excimer laser indications, culminating in a formal CPT Code Change Application submitted by the company in collaboration with leading dermatology experts:
- Dr. Mark Lebwohl, Dean for Clinical Therapeutics at the Icahn School of Medicine at Mount Sinai, President of the American Academy of Dermatology (AAD) during the 2015–2016
- Dr. Pearl Grimes, President of the Global Vitiligo Foundation
- Dr. Elisabeth “Betsy” Richard, Assistant Professor of Dermatology at Johns Hopkins University, Member, Board of Directors, The Photodermatology Society
“We believe this long-anticipated milestone reflects the XTRAC excimer laser’s broader clinical utility,” said Dr. Dolev Rafaeli, STRATA CEO. “This CPT update not only establishes the use of excimer laser beyond psoriasis, which validates volumes of data demonstrating the utility. It now also supports our mission to expand access to safe, effective, non-drug dermatologic solutions for patients in need.”
“Phototherapy—and excimer laser in particular—has transformed the treatment landscape for vitiligo and atopic dermatitis,” said Dr. Lebwohl. “This CPT code update strongly validates 308nm excimer laser's broader clinical value and represents a vital step toward expanding patient access.”
Dr. Grimes, President of the Global Vitiligo Foundation, added, “This update is a major victory for the vitiligo community. For too long, insurance coverage has lagged behind clinical practice. Excimer laser is a vital tool in our therapeutic arsenal, and this change will allow more patients to benefit—safely, affordably, and equitably.”
Dr. Richard emphasized the clinical significance, stating, “Excimer lasers have been a cornerstone of targeted phototherapy for decades. When insurance coverage is limited, patient access to this irreplaceable treatment is jeopardized. This update safeguards the access to excimer laser treatments.”
STRATA expects the expanded CPT code coverage to generate significant commercial growth. Non-psoriasis indications already account for approximately
“This is the inflection point we’ve worked toward for decades,” added Dr. Rafaeli. “From the first vitiligo studies conducted by Mount Sinai’s Icahn School of Medicine in 2002 through hundreds of additional peer-reviewed, published clinical studies worldwide validating the superiority of the 308 nm excimer laser, today’s coding change fulfills our mission to make advanced phototherapy accessible.
“As demonstrated in our XTRAC clinics in China, Japan, and Korea, where a clinic would perform 100 treatments a day, treating a wide array of inflammatory skin diseases provides patients with a safe, effective alternative to drugs, offers providers a reimbursable treatment option, and delivers the lowest-cost solution for payers and insurers. With approximately 850 recurring revenue devices owned by Strata in the United States, the expanded access to the therapy could increase use dramatically,” concluded Dr. Rafaeli.
STRATA is proud of its close collaboration with leading clinical Key Opinion Leaders (KOLs), patient advocacy groups, and the American Academy of Dermatology and looks forward to this next expanded chapter.
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.
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FAQ
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