Lungpacer Medical has received CMS New Technology Add-on Payment approval for the AeroPace System, helping ventilated patients regain independent breathing faster while supporting hospital reimbursement.

Lungpacer Medical Inc., a medical technology company focused on neurostimulation therapies for critically ill patients, announced that the Centers for Medicare & Medicaid Services (CMS) has granted New Technology Add-on Payment (NTAP) status for the AeroPace System under the Fiscal Year 2026 Inpatient Prospective Payment System (IPPS) Final Rule, effective October 1, 2025.

The AeroPace System is an FDA-designated breakthrough device that uses periodic neurostimulation to exercise the diaphragm, helping mechanically ventilated patients breathe independently faster. Clinical evidence shows that patients treated with AeroPace strengthened their diaphragm by 50%, reduced their risk of being on the ventilator for 30 days by 35%, and cut ventilator time by 3 days compared with standard care.

Under the FY2026 IPPS Final Rule, NTAP approval allows for up to 65% reimbursement of the additional cost associated with the technology. Hospitals will be eligible to receive up to $23,650.90 in additional Medicare reimbursement per case using the AeroPace System. The NTAP is intended to offset the cost of innovative therapies that provide substantial clinical improvement over existing options.

“New Technology Add-On Payment approval from CMS for the AeroPace System recognises its clinical value and the potential impact of this groundbreaking therapy to improve patient outcomes,” said Doug Evans, president and CEO of Lungpacer. “This milestone not only reduces financial barriers for hospital adoption but also brings us closer to delivering our technology to the patients who need it most.”

The NTAP designation supports early adoption of technologies that demonstrate newness, cost-effectiveness, and meaningful clinical advancement. The inclusion of AeroPace in the NTAP program highlights its potential to address a critical gap in care for patients requiring prolonged mechanical ventilation.