Goodsurance

Policy & oversight

CMS Sets a Sunset Date for the NTAP Alternative Track for Breakthrough Devices and Advances the RAPID Pathway

The fiscal year 2027 hospital payment final rule phases out the alternative NTAP track that breakthrough-designated devices used to qualify for Medicare reimbursement, while a new CMS-FDA program called RAPID is positioned to take its place.

By the Goodsurance editorial teamAugust 5, 2026

CMS released its fiscal year 2027 Inpatient Prospective Payment System final rule on July 31, 2026, and it included a significant change to how newly approved medical devices qualify for extra Medicare hospital payments under the New Technology Add-On Payment program. Under the existing NTAP framework, devices that received FDA's Breakthrough Device designation could reach supplemental Medicare reimbursement through an alternative pathway based on that designation alone, without separately demonstrating substantial clinical improvement. The FY2027 final rule sets a sunset on that alternative track. To use it, a device must have received its Breakthrough Device designation by September 30, 2026, and must receive FDA marketing authorization by May 1, 2028. Devices that do not meet both cutoffs will need to qualify through the standard NTAP pathway, which requires a showing of substantial clinical improvement as well as the cost and newness criteria. At the same time, CMS and the FDA jointly announced the RAPID coverage pathway, short for Regulatory Alignment for Predictable and Immediate Device. RAPID is designed to expedite Medicare coverage for certain Class II and Class III breakthrough devices by aligning FDA review with Medicare coverage decisions. To be eligible, a device must be the subject of an Investigational Device Exemption study that enrolls Medicare beneficiaries and examines clinical outcomes jointly agreed upon by the two agencies. CMS estimates total NTAP payments across all qualifying technologies will increase by approximately 779 million dollars in fiscal year 2027.

CMS is sunsetting the easier NTAP track for breakthrough devices and replacing it with a new joint FDA-CMS pathway called RAPID.

In plain words

Medicare pays hospitals extra money when they use certain new, cutting-edge medical devices. One easier path for getting that extra payment is ending. To use that path, a device had to receive a special FDA label by September 30, 2026, and get full approval by May 2028. Devices that miss those dates must meet tougher rules to qualify. Going forward, CMS and the FDA have a new program called RAPID that gives some devices a faster path to Medicare coverage, but only if they are part of a study that includes Medicare patients.

Source: CMS
Read at the source →

More news

Other stories on what is moving in Medicare.

Policy & oversight

CMS Barred a Puerto Rico Medicare Advantage Plan From Accepting New Members for 2027

The Centers for Medicare and Medicaid Services issued an enrollment suspension notice on September 3 prohibiting MMM Healthcare LLC from enrolling new Medicare Advantage beneficiaries under contract H7522 for contract year 2027. Existing members are not affected.

September 23, 2026

Policy & oversight

Missouri Receives More Than 45 Million Dollars in Federal Rural Health Grants for Hospitals, Behavioral Care, and EMS Training

Today's announcement directs funds to facility upgrades at 20 rural hospitals, psychiatric consultation access for children and families, and training for hundreds of emergency medical workers.

September 22, 2026

Policy & oversight

OIG Found About 2.3 Million Dollars in Medicare Telehealth Billing Violations That CMS Safeguards Did Not Catch

A federal audit found that Medicare paid for virtual check-ins and e-visits that violated billing timing rules because CMS and its contractors lacked automated detection tools.

September 21, 2026

Policy & oversight

New Mexico Receives 74 Million Dollars in Federal Rural Health Funds to Expand Specialty Care Across Frontier and Tribal Communities

Six Regional Hub Organizations will use the five-year grant to bring telehealth, e-consults, chronic disease management, and workforce support closer to rural, frontier, and Tribal residents statewide.

September 21, 2026

Policy & oversight

Traditional Medicare Required Prior Authorization for Certain Services in Six States for the First Time Starting January 2026, KFF Finds

A KFF examination of the WISeR Model, active in Arizona, New Jersey, Ohio, Oklahoma, Texas, and Washington, found it targets services whose spending grew about 400 percent between 2019 and 2024.

September 21, 2026

Policy & oversight

CMS Releases Final Mandatory Participant List for New Medicare Specialist Payment Model Starting January 2027

Cardiologists and certain pain, orthopedic, and neurosurgery specialists treating Medicare patients for heart failure or low back pain in selected areas are now on notice that a mandatory payment model ties their Part B reimbursement to outcomes beginning January 1.

September 20, 2026