[Federal Register Volume 86, Number 176 (Wednesday, September 15, 2021)]
[Proposed Rules]
[Pages 51326-51335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20016]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

42 CFR Part 405

[CMS-3372-P2]
RIN 0938-AT88


Medicare Program; Medicare Coverage of Innovative Technology 
(MCIT) and Definition of ``Reasonable and Necessary''

AGENCY: Centers for Medicare & Medicaid Services (CMS), Department of 
Health and Human Services (HHS).

ACTION: Proposed rule.

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SUMMARY: This proposed rule would repeal the Medicare Coverage of 
Innovative Technology (MCIT) and Definition of ``Reasonable and 
Necessary'' final rule, which was published on January 14, 2021, and 
would be effective on December 15, 2021. We are providing a public 
comment period to allow interested parties to provide comments about 
the proposed repeal, our intent to conduct future rulemaking to explore 
an expedited coverage pathway that provides access to innovative 
beneficial technologies and the reasonable and necessary definition.

DATES: To be assured consideration, comments must be received at one of 
the addresses provided below, by October 15, 2021.

ADDRESSES: In commenting, please refer to file code CMS-3372-P2. 
Comments, including mass comment submissions, must be submitted in one 
of the following three ways (please choose only one of the ways 
listed):
    1. Electronically. You may submit electronic comments on this 
regulation to http://www.regulations.gov. Follow the ``Submit a 
comment'' instructions.
    2. By regular mail. You may mail written comments to the following 
address ONLY:
    Centers for Medicare & Medicaid Services, Department of Health and 
Human Services, Attention: CMS-3372-P2, P.O. Box 8013, Baltimore, MD 
21244-8013.
    Please allow sufficient time for mailed comments to be received 
before the close of the comment period.
    3. By express or overnight mail. You may send written comments to 
the following address ONLY: Centers for Medicare & Medicaid Services, 
Department of Health and Human Services, Attention: CMS-3372-P2, Mail 
Stop C4-26-05, 7500 Security Boulevard, Baltimore, MD 21244-1850.
    For information on viewing public comments, see the beginning of 
the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Lori Ashby, (410)-786-6322 or 
[email protected].

SUPPLEMENTARY INFORMATION:  Inspection of Public Comments: All comments 
received before the close of the comment period are available for 
viewing by the public, including any personally identifiable or 
confidential business information that is included in a comment. We 
post all comments received before the close of the comment period on 
the following website as soon as possible after they have been 
received: http://www.regulations.gov. Follow the search instructions on 
that website to view public comments. CMS will not post on 
Regulations.gov public comments that make threats to individuals or 
institutions or suggest that the individual will take actions to harm 
the individual. CMS continues to encourage

[[Page 51327]]

individuals not to submit duplicative comments. We will post acceptable 
comments from multiple unique commenters even if the content is 
identical or nearly identical to other comments.

I. Background

A. January 14, 2021 Final Rule

    In the January 14, 2021 Federal Register, we published a final rule 
titled ``Medicare Program; Medicare Coverage of Innovative Technology 
(MCIT) and Definition of `Reasonable and Necessary' (86 FR 2987) 
(hereinafter referred to as the ``MCIT/R&N final rule''). The MCIT/R&N 
final rule established a Medicare coverage pathway to provide Medicare 
beneficiaries nationwide with faster access to recently market 
authorized medical devices designated as breakthrough by the Food and 
Drug Administration (FDA). Under the final rule, MCIT would result in 4 
years of national Medicare coverage starting on the date of FDA market 
authorization or a manufacturer chosen date within 2 years thereafter. 
The MCIT/R&N final rule would also implement regulatory standards to be 
used in making reasonable and necessary determinations under section 
1862(a)(1)(A) of the Social Security Act (the Act) for items and 
services that are furnished under Medicare Parts A and B.

B. March 2021 Interim Final Rule (IFC) and May 2021 Final Rule To Delay 
Effective Date

    In response to the January 20, 2021 memorandum from the Assistant 
to the President and Chief of Staff titled ``Regulatory Freeze Pending 
Review'' (``Regulatory Freeze Memorandum'') (86 FR 7424, January 28, 
2021) and guidance on implementation of the memorandum issued by the 
Office of Management and Budget (OMB) in Memorandum M-21-14 dated 
January 20, 2021, we determined that a 60-day delay of the effective 
date of the MCIT/R&N final rule was appropriate to ensure that--
     The rulemaking process was procedurally adequate;
     We properly considered all relevant facts;
     We considered statutory or other legal obligations;
     We had reasonable judgment about the legally relevant 
policy considerations; and
     We adequately considered public comments objecting to 
certain elements of the rule, including whether interested parties had 
fair opportunities to present contrary facts and arguments.
    Therefore, in an interim final rule with comment period that went 
on display at the Federal Register and took effect on March 12, 2021 
(hereinafter referred to as the ``March 2021 IFC''), and was published 
in the March 17, 2021 Federal Register (86 FR 14542), we--(1) delayed 
the MCIT/R&N final rule effective date until May 15, 2021 (that is, 60 
days after the original effective date of March 15, 2021); and (2) 
opened a 30-day public comment period on the facts, law, and policy 
underlying the MCIT/R&N final rule.
    Many commenters on the March 2021 IFC supported further delaying 
the MCIT/R&N final rule. Based upon the public comments, we did not 
believe that it was in the best interest of Medicare beneficiaries for 
the MCIT/R&N final rule to become effective on May 15, 2021. Therefore, 
in a final rule that went on display at the Federal Register and took 
effect on May 14, 2021 (hereinafter referred to as the ``May 2021 final 
rule''), and was published in the May 18, 2021 Federal Register (86 FR 
26849), we summarized the comments on the March 2021 IFC and further 
delayed the MCIT/R&N final rule effective date until December 15, 2021. 
We explained that the additional delay would provide us an opportunity 
to address all of the issues raised by stakeholders, especially those 
related to Medicare patient protections and evidence criteria. We 
announced that during the delay, we would determine appropriate next 
steps that are in the best interest of all Medicare stakeholders, and 
beneficiaries in particular.

II. Provisions of Proposed Regulations

    We propose to repeal the MCIT/R&N final rule. Our rationale for our 
proposal as well as our requests for comments on this proposed rule are 
explained in the following section.

A. Proposed Repeal of Medicare Coverage of Innovative Technology Policy

    CMS developed MCIT in part due to concerns that delays and 
uncertainty in Medicare coverage slowed innovation and impaired 
beneficiary access to important new technologies, specifically those 
designated as breakthrough devices by FDA. In response to these 
concerns, the rule provided 4 years of expedited coverage to FDA market 
authorized Breakthrough Devices on the first day of FDA market 
authorization or a select date up to 2 years after the market 
authorization date as requested by the device manufacturer. While the 
final rule did not require manufacturers to develop additional 
scientific evidence supporting the use of the Breakthrough Devices in 
the Medicare population, manufacturers were aware that, upon conclusion 
of MCIT coverage, the existing coverage pathways would be available 
(that is, reasonable and necessary determinations would be made via 
claim-by-claim adjudication, local coverage determinations (LCDs), and 
national coverage determinations (NCDs), which include the coverage 
with evidence development pathway). The NCD and LCD development 
processes include reviews of publicly available clinical evidence to 
determine whether or not the items or services are reasonable and 
necessary and would be covered by Medicare.
    We believe that the finalized MCIT/R&N rule is not in the best 
interest of Medicare beneficiaries because the rule may provide 
coverage without adequate evidence that the Breakthrough Device would 
be a reasonable and necessary treatment for the Medicare patients that 
have the particular disease or condition that the device is intended to 
treat or diagnose. While the rule tried to address stakeholder concerns 
about accelerating coverage of new devices, significant concerns 
persist about the availability of clinical evidence on Breakthrough 
Devices when used in the Medicare population as well as the benefit or 
risks of these devices with respect to use in the Medicare population 
upon receipt of coverage. Based on the comments received throughout the 
development of the MCIT pathway, we do not believe that the final rule 
as currently drafted, is the best way to achieve the goals of MCIT as 
outlined in the MCIT/R&N final rule, in particular, to more precisely 
meet the needs Medicare beneficiaries and other stakeholders in a 
timely fashion. We believe that there are other ways to achieve our 
stated goals. This may include better utilizing existing pathways or 
conducting future rulemaking.
    As noted in the May 2021 final rule, our prior policies permitted 
the Medicare program to deny coverage for particular devices if we 
learned that a particular device may be harmful to Medicare 
beneficiaries. Specifically, Medicare Administrative Contractors (MACs) 
could have denied claims under certain circumstances (86 FR 26851, May 
18, 2021). Under the MCIT/R&N final rule, this case-specific 
flexibility would have been removed. While we could remove coverage 
through the NCD process, we would only be able to expeditiously remove 
a Breakthrough Device from the MCIT coverage pathway for limited 
reasons, such as if FDA issued a safety communication or warning letter 
regarding the

[[Page 51328]]

Breakthrough Device, or removed the marketing authorization for a 
device. We believe that this limitation on our authority is 
impracticable as it may lead to preventable harm to Medicare 
beneficiaries and it impedes Medicare's ability to make case-by-case 
determinations regarding whether a device is reasonable and necessary 
based on clinical evidence.
    Further, while the finalized MCIT policy in the MCIT/R&N final rule 
would have provided expedited Medicare coverage following market 
authorization for breakthrough designated devices, there is currently 
no FDA requirement that Medicare beneficiaries must be included in 
clinical studies needed for market-authorization. Because the MCIT/R&N 
final rule did not require data concerning Medicare beneficiaries, 
there is the potential that Medicare would cover devices, even in the 
absence of data demonstrating that the device is reasonable and 
necessary for Medicare patients will benefit from the device. 
Additionally, several medical device manufacturers suggested that, for 
inclusion in MCIT, FDA pivotal studies should require inclusion of 
sufficient numbers of Medicare beneficiaries (86 FR 26851, May 18, 
2021).
    Certain proponents of accelerated Medicare coverage have argued 
that FDA's determination that a product meets applicable safety and 
effectiveness standards for marketing authorization should be 
sufficient to support Medicare coverage of Breakthrough Devices. 
However, after further consideration of all public comments, we no 
longer agree that the FDA safety and effectiveness standards alone are 
sufficient to support open-ended Medicare coverage. FDA and CMS act 
under different statutes that have different goals and the standard for 
coverage (that is, a determination that a device is reasonable and 
necessary for the diagnosis or treatment of illness or injury or to 
improve the functioning of a malformed body member) is not synonymous 
with standards for safety and efficacy standards for marketing 
authorization for the broader population. Among other things, FDA 
conducts premarket review of certain devices to evaluate their safety 
and effectiveness and determines if they meet the applicable standard 
to be marketed in the United States. In doing so, FDA relies on 
scientific and medical evidence that does not necessarily include 
patients from the Medicare population. In general, under the Medicare 
statute, CMS is charged with determining whether items and services are 
reasonable and necessary to diagnose or treat an illness or injury or 
to improve the functioning of a malformed body member. One 
consideration for CMS in making national coverage determinations under 
the reasonable and necessary statute is whether the item/service 
improves health outcomes for Medicare beneficiaries. It is important to 
determine whether Medicare beneficiaries' health outcomes are improved 
because these individuals are often older, with multiple 
comorbidities,\1\ and are often underrepresented or not represented in 
many clinical studies.
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    \1\ Davide L Vetrano, MD, Katie Palmer, Ph.D., Alessandra 
Marengoni, MD, Ph.D., Emanuele Marzetti, MD, Ph.D., Fabrizia 
Lattanzio, MD, Ph.D., Regina Roller-Wirnsberger, MD, MME, Luz Lopez 
Samaniego, Ph.D., Leocadio Rodr[iacute]guez-Ma[ntilde]as, MD, Ph.D., 
Roberto Bernabei, MD, Graziano Onder, MD, Ph.D., Frailty and 
Multimorbidity: A Systematic Review and Meta-analysis, The Journals 
of Gerontology: Series A, Volume 74, Issue 5, May 2019, Pages 659-
666, https://doi.org/10.1093/gerona/gly110.
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1. Evidence Development and Patient Safety
    The Medicare national coverage determination process includes a 
robust review of available clinical evidence and focuses on the 
Medicare population to make reasonable and necessary determinations. In 
contrast, the MCIT pathway would establish an expedited 4-year coverage 
pathway for all Breakthrough Devices that fall under a Medicare benefit 
category without a specific requirement that the device must 
demonstrate it is reasonable and necessary for the Medicare population. 
In general, Medicare patients have more comorbidities and often require 
additional and higher acuity clinical treatments which may impact the 
outcomes differently than the patients generally enrolled in early 
clinical trials. These considerations are often not addressed in the 
early device development process.
    When we issued the MCIT/R&N final rule on January 14, 2021, we 
responded to commenters who suggested that CMS should take a different 
approach. Some commenters suggested that we should require 
manufacturers to provide data about Medicare outcomes before providing 
coverage as reasonable and necessary. Other commenters suggested that 
we provide incentives to manufacturers to include Medicare 
beneficiaries in clinical studies, similar to CMS's Coverage with 
Evidence Development (CED) paradigm, before coverage under section 
1862(a)(1)(A) of the Act was allowed (86 FR 2990, January 14, 2021).\2\ 
In response to the March 2021 IFC, additional commenters supported 
evidence development as part of the requirements to participate in the 
MCIT pathway. Some commenters noted that some clinical trials that were 
conducted to support market authorization through the Breakthrough 
Devices pathway lack data on patients older than 65, patients with 
disabilities, and patients with end stage renal disease (ESRD). They 
asserted that the absence of this clinical information poses some 
uncertainty about whether FDA's determination of safety and efficacy 
could be generalized to the Medicare population (86 FR 26850 and 26851, 
May 18, 2021). CMS acknowledges that after further consideration of 
public comments, we have changed our position on this issue. In 
response to commenters' concerns about expedited coverage without 
adequate evidentiary support, CMS agrees that guaranteeing coverage for 
all Breakthrough Devices receiving market authorization for any 
Medicare patient could be problematic if there is no evidence 
demonstrating a health benefit or addressing the additional risks for 
Medicare beneficiaries (86 FR 26850 and 26851, May 18, 2021). We noted 
that a Breakthrough Device may only be beneficial in a subset of the 
Medicare population or when used only by clinicians within a certain 
specialty to ensure benefit. Without additional clinical evidence on 
the device's clinical utility for the Medicare population or 
appropriate providers, it is challenging to determine appropriate 
Medicare coverage of newly market-authorized Breakthrough Devices (86 
FR 26850 and 26851, May 18, 2021).
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    \2\ CMS, Guidance for the Public, Industry, and CMS Staff 
Coverage with Evidence Development, available at https://www.cms.gov/medicare-coverage-database/details/medicare-coverage-document-details.aspx?MCDId=27.
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    We recognize that the breakthrough designation may be granted by 
FDA before sufficient clinical evidence is available to prove there is 
a health benefit for Medicare patients. FDA has explained in guidance 
that because decisions on requests for breakthrough designation will be 
made prior to marketing authorization, FDA considers whether there is a 
``reasonable expectation that a device could provide for more effective 
treatment or diagnosis relative to the current standard of care (SOC) 
in the U.S'' for purposes of the designation. This reasonable 
expectation can be ``supported by literature or preliminary data 
(bench, animal, or clinical)''.\3\ Without sufficient

[[Page 51329]]

evidence developed to show the device improves health outcomes for 
Medicare beneficiaries, it may be challenging for the Medicare program 
to determine the health benefit of these devices for Medicare 
beneficiaries. Public comments expressed concern about how the Medicare 
population is often excluded from clinical trials due to age and health 
status.
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    \3\ Food and Drug Administration, Breakthrough Devices Program 
Guidance for Industry and Food and Drug Administration Staff, 9, 
available at: https://www.fda.gov/media/108135/download.
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    Previously, in the MCIT/R&N final rule, we noted that ``device 
coverage under the MCIT pathway is reasonable and necessary for a 
duration of time under section 1862(a)(1)(A) of the Act because the 
device has met the very unique criteria of the FDA Breakthrough Devices 
Program'' (86 FR 2988, January 14, 2021).\4\ Through further 
consideration of the breakthrough designation process, we have changed 
our position on this issue and determined that Breakthrough Device 
designation is not, by itself, sufficient for expedited Medicare 
coverage purposes. Rather, as explained previously, we understand that 
FDA may grant a device breakthrough designation when the device has 
shown a ``reasonable expectation'' of providing more effective 
treatment or diagnosis of a life-threatening or irreversibly 
debilitating disease or condition relative to the current U.S. SOC and 
that it meets the other criterion for designation in section 515B(b)(2) 
of the Federal Food, Drug, and Cosmetic Act (FD&C) Act (21 U.S.C. 360e-
3(b)(2)). In turn, we now do not believe it is in the best interest of 
Medicare beneficiaries to base expedited, multiyear, broad national 
coverage through section 1862(a)(1)(A) of the Act on this designation 
alone.
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    \4\ 86 FR 2988 (January 14, 2021) available at https://www.govinfo.gov/content/pkg/FR-2021-01-14/pdf/2021-00707.pdf.
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    Clinical studies that are conducted in order to gain market 
authorization for FDA Breakthrough Devices may not always include 
information on patients with similar demographics and characteristics 
of the Medicare population. Additionally, there may be devices 
designated as breakthrough that do not have adequate data on the 
effectiveness of the device for the Medicare population. Without 
requiring any evidence specific to the Medicare patients, there may not 
be any evidence to demonstrate whether the device is beneficial or not 
after the conclusion of MCIT coverage after 4 years. Without such 
evidence, it is possible that Medicare would be covering and paying for 
devices that may have little or no Medicare relevant clinical evidence 
to assist physicians and patients in making potentially life-saving 
treatment decisions. Evidence-based coverage policy is essential to our 
objective of improving health outcomes while delivering greater value. 
Supportive clinical evidence that ensures a device is both safe and 
effective and reasonable and necessary in the Medicare population is 
crucial in order to grant coverage for a device under section 
1862(a)(1)(A) of the Act. Such evidence is used to determine whether a 
new technology meets the appropriateness criteria of the longstanding 
Medicare Program Integrity Manual Chapter 13 definition of reasonable 
and necessary.\5\ We believe that it is important to require 
manufacturers participating in an innovative coverage pathway, such as 
MCIT, to produce evidence that demonstrates the health benefit of the 
device and the related services for patients with demographics similar 
to that of the Medicare population.
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    \5\ CMS, Medicare Program Integrity Manual, Chapter 13, 13.5.4, 
available at https://www.cms.gov/regulations-and-guidance/guidance/manuals/downloads/pim83c13.pdf.
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    In response to the March 2021 IFC, some commenters cited evidence 
that FDA-mandated postmarket studies are not reliably completed (less 
than 20 percent of required studies are completed within 3 to 5 years 
after market authorization),\6\ and asserted that evidence 
demonstrating a device's health benefit in Medicare beneficiaries is 
essential. Commenters also recommended that CMS outline in guidance 
documents the types of evidence that would be acceptable for 
applications for national or local coverage determinations once the 
MCIT pathway's 4 years had expired, such as real-world data or 
randomized, controlled trials (86 FR 26851, May 18, 2021). By 
voluntarily developing this evidence during the time a device is 
covered under the MCIT pathway, the manufacturer could have the 
evidence base needed for one of the other coverage pathways after the 
MCIT pathway ends. However, the MCIT/R&N final rule did not require 
manufacturers of Breakthrough Devices to develop evidence as part of 
their participation requirements under MCIT. In the May 2021 final 
rule, we noted that numerous commenters, including physicians with 
experience in clinical research and medical specialty societies, sought 
modifications to the MCIT/R&N final rule regarding evidence 
development, including the addition of real-world evidence 
requirements.
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    \6\ Rathi et al.
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    As was noted by commenters in response to the March 2021 IFC that 
delayed the MCIT/R&N final rule until December 15, 2021, early and 
unrestricted adoption of devices may have consequences that may not be 
easy to reverse. CMS expects physicians to consider the available 
evidence and assess the care needs of each patient when considering the 
best treatment options. However, by guaranteeing coverage of devices 
based solely on breakthrough status and FDA marketing authorization, 
rather than also taking into account whether the device provides an 
effective, reasonable and necessary treatment for Medicare patients, 
there may be an incentive for physicians to use a device that has 
coverage under the MCIT pathway rather than a device that is not 
covered under the MCIT pathway but is nonetheless covered under an 
existing coverage pathway and that may be more beneficial to patients. 
This early adoption by physicians could potentially lead to these 
devices being prematurely viewed as the standard of care, which could 
adversely impact beneficiaries if there is another item or service 
available to treat the patient that has an evidence-base to suggest 
that it may lead to better health outcomes. We believe that providers' 
clinical treatment decisions should take the individual needs of the 
patient into account; therefore, we seek to avoid the appearance of 
incentivizing the use of MCIT-covered devices when an alternative item 
or service may be more appropriate.
    While the MCIT/R&N final rule may provide beneficiaries and 
manufacturers an assurance of national Medicare coverage, evidence 
development under MCIT as previously finalized is voluntary and there 
was no requirement that manufacturers conduct studies to generate 
evidence to demonstrate clinical benefit to Medicare patients. We 
acknowledge that we no longer believe that voluntary evidence 
development is in the best interests of Medicare beneficiaries as we 
believe such evidence is key to determining the best treatments for 
Medicare patients to ensure that the benefits of treatments outweigh 
the potential harms. For devices that lack evidence that is 
generalizable to the Medicare population, we believe it is important 
for evidence to be developed and some public commenters suggested that 
we establish the coverage criteria (for example, provider experience, 
site of service, availability of supporting services) to ensure 
delivery of high-quality, evidence-based care.

[[Page 51330]]

    While we are proposing to repeal the MCIT/R&N final rule, this 
action would not prohibit coverage of Breakthrough Devices. As we noted 
in the May 2021 final rule, even without the MCIT/R&N final rule in 
effect, a review of claims data showed that Breakthrough Devices have 
received and are receiving Medicare coverage when medically necessary. 
Many of the eligible Breakthrough Devices are coverable and payable 
through existing mechanisms. Some Breakthrough Devices may be addressed 
by an existing LCD or NCD. New items and services can also be 
adjudicated on a claim-by-claim basis and be covered and paid under the 
applicable Medicare payment system if the MAC determines them to be 
reasonable and necessary for specific patients upon a more 
individualized MAC assessment. The MACs take into account a 
beneficiary's particular clinical circumstances to determine whether a 
beneficiary may benefit from the device. CMS acknowledges, among other 
factors, that MCIT was developed in response to stakeholder concerns 
about time lags and coverage uncertainty for devices subject to claim-
by-claim coverage determinations.
2. Limitations of the MCIT Pathway
    The MCIT/R&N final rule limited MCIT only to Breakthrough Devices 
that are designated as part of FDA's Breakthrough Devices Program. In 
accordance with section 515B of the FD&C (21 U.S.C. 360e-3), FDA's 
Breakthrough Devices Program is for certain medical devices and device-
led combination products, and can include lab tests.\7\ To be granted a 
Breakthrough Device designation under the Breakthrough Devices Program, 
medical devices and device-led combination products must meet two 
criteria. The first criterion is that the device provides for more 
effective treatment or diagnosis of life-threatening or irreversibly 
debilitating human disease or conditions. The second criterion is that 
the device must satisfy one of the following elements:
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    \7\ Breakthrough Devices Program Guidance for Industry and Food 
and Drug Administration Staff, available at https://www.fda.gov/media/108135/download.
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     It represents a breakthrough technology.
     No approved or cleared alternatives exist.
     It offers significant advantages over existing approved or 
cleared alternatives.
     Device availability is in the best interest of patients 
(for more information see 21 U.S.C. 360e-3(b)(2)).
    We acknowledge that some stakeholders, and device manufacturers in 
particular, supported MCIT and the concept of faster coverage.
    Some commenters to the September 2020 MCIT/R&N proposed rule 
expressed concern that the MCIT pathway could give specific 
technologies an unfair advantage that would be unavailable to 
subsequent market entrants, thereby decreasing innovation and market 
competition (86 FR 2998). Commenters submitted a variety of alternative 
approaches to covering second-to-market and non-breakthrough designated 
new technology to remedy this unintended consequence. Some commenters 
supported that CMS cover iterative refinements of the same Breakthrough 
Device for the duration of the original device's MCIT term. Other 
commenters suggested coverage under the MCIT pathway for subsequent 
similar breakthrough and non-breakthrough designated devices of the 
same type and indication for the balance of the first device's MCIT 
term. Yet other commenters proposed that new market entrants that are 
very similar to a Breakthrough Device should each receive the full 4 
years of MCIT coverage, not tied to the timeline of the original 
product. Commenters also suggested policies related to coverage options 
for second-to-market or subsequent technologies of the same type, even 
for the same indication or subsequent-to-market non-breakthrough 
designated technologies that fall under the same class or category as 
the predicate breakthrough technology and approved for the same 
indication.
    CMS acknowledges that we have changed our policy position on this 
issue after further consideration of public comments. We agree with 
commenters that there are many drawbacks to limiting coverage through 
the MCIT pathway only to those devices that are part of the 
Breakthrough Devices Program. As noted previously, the potential 
incentives created by offering immediate coverage of Breakthrough 
Devices may disincentivize development of innovative technologies that 
do not meet the criteria for the Breakthrough Devices Program, such as 
some non-breakthrough-designated second-to-market devices and 
subsequent technologies of the same type. Additionally, we now believe 
a more flexible coverage pathway that leverages existing statutory 
authorities may be better able to provide faster coverage of new 
technologies to Medicare beneficiaries while prioritizing patient 
health and outcomes. CMS invites public comment on our proposal to 
repeal the MCIT coverage pathway of the MCIT/R&N final rule for the 
reasons previously described.
3. Future Coverage Policy Rulemaking
    While we are proposing to repeal the MCIT/R&N final rule as it is 
currently written, we are considering future policies and potential 
rulemaking to provide improved access to innovative and beneficial 
technologies. We are committed to exploring other policy options and 
statutory authorities for coverage that better suit the needs of 
Medicare beneficiaries and other stakeholders when the items or 
services are supported by adequate evidence.

B. Definition of ``Reasonable and Necessary''

    In general, section 1862(a)(1)(A) of the Act permits Medicare 
payment under Part A or Part B for items or services that are 
reasonable and necessary for the diagnosis or treatment of illness or 
injury or to improve the functioning of a malformed body member. The 
definition of ``reasonable and necessary'' in the MCIT/R&N final rule 
mirrored the longstanding CMS Program Integrity Manual's definition of 
``reasonable and necessary'' with a modification to the appropriateness 
factor to specify when and how (upon publication of guidance) we would 
utilize commercial insurer coverage policies.
    Expanding the reasonable and necessary definition to systematically 
consider commercial insurer coverage presents implementation and 
appeals process challenges that would likely persist. In the preamble 
to the MCIT/R&N final rule, we stated our intention to gather 
additional public input on the methodology by which commercial 
insurers' policies are determined to be relevant to the reasonable and 
necessary appropriateness criteria in response to commenters concerns 
that the commercial insurer appropriateness criteria was vague. We 
stated that not later than 12 months after the effective date of the 
MCIT/R&N final rule (that is, December 15, 2021), we would publish for 
public comment, a draft methodology for determining when commercial 
insurers' policies could be considered to meet the reasonable and 
necessary definition appropriateness criteria for coverage of an item 
or service. Comments received in response to the March 2021 IFC 
expressed concern about how the commercial insurer policy provision 
would be implemented. Commenters also expressed concerns that the R&N 
definition included in the MCIT/R&N

[[Page 51331]]

final rule, and more specifically the commercial insurance aspects of 
the definition, will remove existing flexibilities and potentially 
impact CMS' ability to ensure equitable health care access for all 
Medicare beneficiaries. Additionally, commenters suggested that the 
reasonable and necessary definition should be included in a separate 
rule as MCIT because R&N are independent and distinct provisions with 
different implications for Medicare policy. In light of our proposal to 
repeal the R&N definition, including the commercial insurance aspects 
of the MCIT/R&N final rule, we will not be issuing subregulatory 
guidance by March 15, 2022 on consideration of commercial insurer 
coverage polices when there is insufficient evidence to make a national 
or local coverage determination.
    While we are proposing to fully repeal the MCIT/R&N final rule as 
it is currently written, we invite comments on the R&N aspect of our 
proposal. In lieu of fully repealing the R&N rule, should the final 
rule instead merely repeal the commercial insurance aspects of the 
rule? If CMS does consider future rulemaking to include defining 
reasonable and necessary, what criteria should CMS consider as part of 
the reasonable and necessary definition? For example, should CMS 
maintain the codification of the definition of ``Reasonable and 
Necessary'' as found in the Chapter 13 of the CMS Program Integrity 
Manual (PIM) or consider different criteria?

C. Effect of Proposed Repeal

    If the MCIT/R&N final rule is repealed as proposed, the revisions 
to part 405 of Title 42 of the Code of Federal Regulations would not 
occur and the text would remain unchanged. Specifically, a definition 
of ``reasonable and necessary'' would not be included among the terms 
defined at 42 CFR 405.201(b) and the guidance that the rule would have 
required (subregulatory guidance on the topic of utilization of 
commercial insurer polies) would not be introduced. Additionally, 
Subpart F, which wholly consisted of Medicare Coverage of Innovative 
Technology, would not be added, and Subpart F would remain reserved for 
other purposes.

III. Regulatory Impact Statement

    This proposed rule would repeal the MCIT pathway and codification 
of the definition of ``reasonable and necessary.'' Because the January 
2021 final rule effective date was delayed until December 15, 2021, the 
MCIT coverage pathway and definition of ``reasonable and necessary'' 
have not been implemented, and no payments for items and services could 
have been made in relation to these provisions since they have not 
taken effect. In the January 2021 final rule, we included a robust 
regulatory impact analysis of these provisions. Because the final rule 
has not gone into effect, and this proposal would repeal the 
provisions, there has not been an impact from these provisions nor 
would there be an impact, relative to current coverage practice, upon 
repeal; however, effects would be non-negligible relative to the future 
trajectory without this proposed repeal.
    In the MCIT/R&N final rule, we examined the impact of the final 
rule as required by Executive Order 12866 on Regulatory Planning and 
Review (September 30, 1993), Executive Order 13563 on Improving 
Regulation and Regulatory Review (January 18, 2011), the Regulatory 
Flexibility Act (RFA) (September 19, 1980, Pub. L. 96-354), section 
1102(b) of the Social Security Act, section 202 of the Unfunded 
Mandates Reform Act of 1995 (March 22, 1995; Pub. L. 104-4), Executive 
Order 13132 on Federalism (August 4, 1999), the Congressional Review 
Act (5 U.S.C. 804(2)), and Executive Order 13771 on Reducing Regulation 
and Controlling Regulatory Costs (January 30, 2017).
    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). A 
regulatory impact analysis (RIA) must be prepared for major rules with 
economically significant effects ($100 million or more in any 1 year). 
The MCIT/R&N 2021 final rule reached the economic threshold and thus 
was considered a major rule. Because this proposed rule would 
completely repeal the provisions, this proposed rule also reaches the 
economic threshold and its finalization is anticipated to be a major 
rule.

A. MCIT Pathway

    CMS considered alternatives to repealing the MCIT pathway and the 
definition of reasonable and necessary, such as maintaining the 
provisions of the MCIT/R&N final rule and further delaying the 
effective date. For the reasons described in detail in section II. of 
this proposed rule such as patient safety and need for further public 
engagement, we chose to propose to repeal the provisions. We note that 
further delay of the MCIT/R&N final rule would not alter the patient 
safety concerns inherent in the MCIT pathway.
    As described in the MCIT/R&N final rule, the impacts of the MCIT 
pathway and defining ``reasonable and necessary'' were hard to quantify 
without knowing the specific Breakthrough Devices that would seek MCIT 
and other items and services that would be included in future NCDs and 
LCDs and the criteria that CMS will use for determining which 
commercial insurers will be considered.

B. ``Reasonable and Necessary'' Definition

    In order to demonstrate the potential impact on Medicare spending 
for the definition of ``reasonable and necessary'' in the MCIT/R&N 
final rule we developed scenarios that illustrated the impact of 
implementing the two alternatives considered (no change/not codifying a 
definition and codifying a definition). One of the options was making 
no change, that is not codifying the definition of ``reasonable and 
necessary'' in regulations. The impact for no change was $0, thus, we 
reflect that value in Table 1 as repealing the MCIT/R&N final rule 
would have the same impact. The number of NCDs and LCDs finalized in a 
given year can vary and the cost of items and services within the 
coverage decisions varies. Further, while we reviewed coverage of items 
and services, we did not take into account unique Medicare rules 
regarding which type of providers/clinicians may furnish certain 
services, place of service requirements, or payment rules. Our analysis 
was based on whether Medicare covered or non-covered an item or service 
and whether we could find coverage for that item or service by any 
commercial insurer. Lastly, this impact analysis was based on the 
numbers of NCDs and LCDs finalized in 2020 (see Table 1).
    In 2020, CMS and the MACs finalized 3 NCDs and 31 LCDs (This number 
represents new LCDs in 2020 and made publicly available via the 
Medicare Coverage Database. If more than one MAC jurisdiction issued an 
LCD on the same item or service with the same coverage decision, only 1 
of the LCDs was included in the count.)
    Of the NCDs finalized in 2020, all 3 resulted in expanded national 
Medicare coverage. Because none of those NCDs resulted in non-coverage, 
we did not evaluate whether commercial insurers would have covered the 
item or service. Therefore, based on 2020 data for NCDs only, the 
impact would be $0.

[[Page 51332]]

    Of the 31 LCDs, 27 provided Medicare positive coverage and 4 
resulted in non-coverage. For those items and services non-covered we 
identified 3 of those items and services were covered in at least 1 
commercial insurer policy. For these non-covered items and services we 
established that the possible range of the cumulative cost of covering 
them could be from $0 to $3.4 billion for a single year (based on price 
and approximate Medicare beneficiary utilization). Because our analysis 
looked for any commercial insurer that covered the item or service, the 
cost may be less when utilizing commercial insurer polices that 
represent a majority of covered lives. In addition, even if a 
commercial insurer covers an item or service, the final rule did not 
require automatic Medicare coverage. Therefore, not all items and 
services that are non-covered by Medicare but covered by commercial 
insurance would be presumed covered under the MCIT/R&N final rule. 
Rather, commercial insurer coverage would have been a factor that CMS 
would have taken into account as part of the body of evidence in 
determining coverage through the NCD and LCDs processes. Because not 
all commercial insurer positive coverage will necessarily translate to 
Medicare coverage and because CMS was to define which types of 
commercial insurers (based on majority of covered lives) would be 
relevant, we believe that commercial insurer coverage impact is likely 
much smaller, closer to 15 to 25 percent of $3.4 billion, that is, $51 
to $880 million.

         Table 1--Illustrated Impact for the Medicare Program by Definition of Reasonable and Necessary
----------------------------------------------------------------------------------------------------------------
                                          Estimated change in Medicare costs for the
                                        alternatives considered for the MCIT/R&N final
                                                             rule                           Commercial insurer
                                     ---------------------------------------------------     coverage as sole
                                           No change  (not                                     determinant
                                       codifying a definition)    Codified definition
----------------------------------------------------------------------------------------------------------------
Coverage Determinations (NCDs and                          $0   $51-880 million........  $3.4+ billion.
 LCDs).
----------------------------------------------------------------------------------------------------------------

C. MCIT Pathway

    In the MCIT/R&N final rule specifically for MCIT, we considered 
regulatory alternatives to combine Medicare coverage with clinical 
evidence development under section 1862(a)(1)(E) of the Act, to take no 
regulatory action, or to adjust the duration of the MCIT pathway. The 
impact of implementing the MCIT pathway was difficult to determine 
without knowing the specific Breakthrough Devices that would be 
covered. In addition, many of these devices would be eligible for 
coverage in the absence of the rule, such as through a local or 
national coverage determination, so the impact for certain items may be 
the acceleration of coverage by just a few months. Furthermore, some of 
these devices would be covered immediately if the MACs decide to pay 
for them, which would result in no impact on Medicare spending for 
devices approved under this pathway. However, it is possible that some 
of these Breakthrough Devices would not otherwise be eligible for 
coverage in the absence of the rule. Because it was not known how these 
new technologies would otherwise come to market and be reimbursed, it 
was not possible to develop a point estimate of the impact. In general, 
we believed the MCIT coverage pathway would range in impact from having 
no impact on Medicare spending, to a temporary cost for innovations 
that are adopted under an accelerated basis.
    The decision to enter the MCIT pathway would have been voluntary 
for the manufacturer. Because manufacturers typically join the Medicare 
coverage pathway that is most financially beneficial to them, this 
could result in selection against the existing program coverage 
pathways (to what degree is unknown at this point). In addition, the 
past trend of new technology costing more than existing technology 
could lead to a higher cost for Medicare if this trend continued for 
technologies enrolling in the MCIT pathway. Nevertheless, new 
technology may also mitigate ongoing chronic health issues or improve 
efficiency of services thereby reducing some costs for Medicare.
    To demonstrate the potential impact on Medicare spending, for the 
MCIT/R&N final rule the CMS Office of the Actuary (OACT) developed 
three hypothetical scenarios that illustrate the impact of implementing 
the MCIT pathway. Scenarios two and three assumed that the device would 
not have been eligible for coverage in the absence of the proposed rule 
(see Table 2). The illustration used the new devices that applied for a 
NTAP in FY 2020 as a proxy for the new devices that would utilize the 
MCIT pathway. The submitted cost and anticipated utilization for these 
devices was published in the Federal Register.\8\ In addition, we 
assumed that two manufacturers would elect to utilize the MCIT pathway 
in the first year, three manufacturers in the second year, four 
manufacturers in the third year, and five manufacturers in the fourth 
year each year for all three scenarios. This assumption is based on the 
number of medical devices that received FY 2020 NTAP and were non-
covered in at least one MAC jurisdiction by LCDs and related articles 
and our impression from the FDA that the number of devices granted 
breakthrough status is increasing. For the first scenario, the no-cost 
scenario, we assumed that all the devices would be eligible for 
coverage in the absence of MCIT. If the devices received coverage and 
payment nationally and at the same time then there would be no 
additional cost under this pathway. For the second scenario, the low-
cost scenario, we assumed that the new technologies would have the 
average costs ($2,044) and utilization (2,322 patients) of similar 
technologies included in the FY 2020 NTAP application cycle. Therefore, 
to estimate the first year of MCIT, we multiplied the add-on payment 
for a new device by the anticipated utilization for a new device by the 
number of anticipated devices in the pathway ($2,044 x 2,322 x 2 = $ 
9.5 million). For the third scenario, the high-cost scenario, we 
assumed the new technologies would receive the maximum add-on payment 
from the FY2020 NTAP application cycle ($22,425) and the highest 
utilization of a device (6,500 patients). Therefore, to estimate for 
the first year of MCIT, we estimated similarly ($22,425 x 6,500 
patients x 2 = $ 291.5 million). For subsequent years, we increased the 
number of anticipated devices in the

[[Page 51333]]

pathway by three, four, and five in the last two scenarios until 
2024.\9\ In addition to not taking into account inflation, the 
illustration does not reflect any offsets for the costs of these 
technologies that would be utilized through existing authorities nor 
the cost of other treatments (except as noted). It is not possible to 
explicitly quantify these offsetting costs but they could substantially 
reduce or eliminate the net program cost. However, by assuming that 
only two to five manufacturers would elect MCIT coverage, we implicitly 
assumed that, while more manufacturers could potentially elect coverage 
under MCIT, the majority of devices would have been covered under a 
different coverage pathway. Therefore, a substantial portion of the 
offsetting costs are implicitly reflected.
---------------------------------------------------------------------------

    \8\ FY 2020 Hospital Inpatient Prospective Payment System (IPPS) 
Proposed Rule (84 FR 19640 and 19641) (May 3, 2019) available at 
https://www.govinfo.gov/content/pkg/FR-2019-05-03/pdf/2019-08330.pdf 
(accessed October 17, 2019).
    \9\ An indirect cost of the proposed rule would be increased 
distortions in the labor markets taxed to support the Medicare Trust 
Fund. Such distortions are sometimes referred to as marginal excess 
tax burden (METB), and Circular A-94--OMB's guidance on cost-benefit 
analysis of federal programs, available at https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A94/a094.pdf--suggests that METB may be valued at roughly 25 percent of 
the estimated transfer attributed to a policy change; the Circular 
goes on to direct the inclusion of estimated METB change in 
supplementary analyses. If secondary costs--such as increased 
marginal excess tax burden is, in the case of this final rule--are 
included in regulatory impact analyses, then secondary benefits must 
be as well, in order to avoid inappropriately skewing the net 
benefits results, and including METB only in supplementary analyses 
provides some acknowledgement of this potential imbalance.
---------------------------------------------------------------------------

    Based on this analysis, there was a range of potential impacts of 
MCIT as shown in Table 2. The difference between the three estimates 
demonstrates how sensitive the impact is to the cost and utilization of 
these unknown devices.
    Because MCIT has not yet been implemented, we lack evidence with 
which to update the earlier estimates, so Table 2, only differs from 
the analogous table accompanying the MCIT/R&N final rule in terms of 
the sign (that is, the direction) on the estimates and a shifting of 
the time horizon by one year so as to avoid stating this proposed rule 
would have effects in the nearly-ended FY 2021.

                  Table 2--Illustrated Impact on the Medicare Program by MCIT Coverage Pathway
----------------------------------------------------------------------------------------------------------------
                                                                        Costs (in millions)
                                                 ---------------------------------------------------------------
                                                      FY 2022         FY 2023         FY 2024         FY 2025
----------------------------------------------------------------------------------------------------------------
No-cost Scenario................................              $0              $0              $0              $0
Low-cost Scenario...............................            -9.5           -23.7           -42.7           -66.4
High-cost Scenario..............................          -291.5          -728.8        -1,311.9        -2,040.7
----------------------------------------------------------------------------------------------------------------

    The RFA requires agencies to analyze options for regulatory relief 
of small entities. For purposes of the RFA, small entities include 
small businesses, nonprofit organizations, and small governmental 
jurisdictions. Some hospitals and other providers and suppliers are 
small entities, either by nonprofit status or by having revenues of 
less than $7.5 million to $38.5 million in any 1 year. Individuals and 
States are not included in the definition of a small entity. For the 
MCIT/R&N final rule, we reviewed the Small Business Administration's 
Table of Small Business Size Standards Matched to North American 
Industry Classification System (NAICS) Codes to determine the NAICS 
U.S. industry titles and size standards in millions of dollars and/or 
number of employees that apply to small businesses that could be 
impacted by this rule. We determined that small businesses potentially 
impacted by that rule include surgical and medical instrument 
manufacturers (NAICS code 339112, dollars not provided/1,000 
employees), Offices of Physicians (except Mental Health Specialists) 
(NAICS code 621111, $12 million/employees not provided), and 
Freestanding Ambulatory Surgical and Emergency Centers (NAICS code 
621493, $16.5 million/employees not provided). Because the impact of 
this proposed rule would be no change in current coverage policy, we 
determined that small businesses identified would not be impacted by 
this proposed rule. Given the nature of the breakthrough devices market 
authorized thus far and the timely notification of the MCIT/R&N final 
rule's delay of effective date, we do not anticipate that small 
businesses would have made investment decisions or experienced a loss 
of anticipated positive reimbursement as a result of the MCIT/R&N final 
rule. Because MCIT has not gone into effect, and we are proposing to 
repeal the rule, payments have not occurred nor would they occur under 
MCIT; therefore, the impact of this proposed rule is neither an 
increase nor decrease in revenue for providers. We are not preparing a 
further analysis for the RFA because we have determined, and the 
Secretary of the Department of Health and Human Services (the 
Secretary) certifies, that the proposed rule and this subsequent final 
rule will not have a significant negative economic impact on a 
substantial number of small entities because small entities are not 
being asked to undertake additional effort or take on additional costs 
outside of the ordinary course of business.
    In addition, section 1102(b) of the Act requires us to prepare a 
regulatory impact analysis if a rule may have a significant impact on 
the operations of a substantial number of small rural hospitals. This 
analysis must conform to the provisions of section 603 of the RFA. For 
purposes of section 1102(b) of the Act, we define a small rural 
hospital as a hospital that is located outside of a Metropolitan 
Statistical Area for Medicare payment regulations and has fewer than 
100 beds. We are not preparing an analysis for section 1102(b) of the 
Act because we have determined, and the Secretary certifies, that the 
proposed rule and the final rule would not have a significant impact on 
the operations of a substantial number of small rural hospitals because 
small rural hospitals are not being asked to undertake additional 
effort or take on additional costs outside of the ordinary course of 
business. Obtaining Breakthrough Devices for patients is at the 
discretion of providers. We are not requiring the purchase and use of 
Breakthrough Devices. Providers should continue to work with their 
patients to choose the best treatment. For small rural hospitals that 
provide Breakthrough Devices to their patients, this proposed rule 
would not change the way they are currently covered through the 
Medicare program.
    Section 202 of the Unfunded Mandates Reform Act of 1995 also 
requires that agencies assess anticipated costs and benefits before 
issuing any rule whose mandates require spending in any 1 year of $100 
million in 1995 dollars, updated annually for inflation. In 2021, that 
threshold was

[[Page 51334]]

approximately $158 million. This proposed rule would have no 
consequential effect on State, local, or tribal governments or on the 
private sector.
    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a proposed rule (and subsequent 
final rule) that imposes substantial direct requirement costs on State 
and local governments, preempts State law, or otherwise has Federalism 
implications. Since this final rule does not impose any costs on State 
or local governments, the requirements of Executive Order 13132 are not 
applicable.
    In accordance with the provisions of Executive Order 12866, this 
final rule was reviewed by the Office of Management and Budget.

IV. Waiver of the 60-Day Public Comment Period

    We ordinarily publish a notice of proposed rulemaking in the 
Federal Register and invite public comment prior to a rule taking 
effect in accordance with section 1871 of the Act and section 553(b) of 
the Administrative Procedure Act (APA) (5 U.S.C. 553(b). Section 
1871(a)(2) of the Act provides, in relevant part, that no rule, 
requirement, or other statement of policy that establishes or changes a 
substantive legal standard governing the scope of benefits, the payment 
for services, or the eligibility of individuals, entities, or 
organizations to furnish or receive services or benefits under Medicare 
shall take effect unless it is promulgated through notice and comment 
rulemaking. Unless there is a statutory exception, section 1871(b)(1) 
of the Act generally requires the Secretary to provide a period of not 
less than 60 days for public comment. Similarly, under 5 U.S.C. 553(b), 
the agency is required to publish a notice of proposed rulemaking in 
the Federal Register before a substantive rule takes effect.
    However, section 1871(b)(2) of the Act, permits exceptions to the 
60-day time period, including in situations where there would be good 
cause under 5 U.S.C. 553(b). Section 553(b) of the APA permits no 
public comment period when the agency, for good cause, finds the notice 
and public procedure are impracticable, unnecessary, or contrary to the 
public interest. We find good cause to reduce the public comment period 
to 30 days with respect to the proposed repeal of the MCIT/R&N final 
rule that would otherwise become effective on December 15, 2021. If we 
were to provide the full 60-day public comment period on this proposed 
rule, there would not be adequate opportunity to meaningfully consider 
public comments before a final action was needed. In addition, we have 
already provided two opportunities for public comments relating to the 
subject matter of this rule earlier this year in connection with the 
delay of the effective date. Although repealing a final rule is 
different than delaying the effective date, the familiarity with the 
subject matter reduces the time the public needs to formulate comments 
on this proposed rule. Based on the prior comment periods, we are aware 
that some public commenters opposed to the MCIT/R&N final rule are 
likely to support repeal, while other commenters were in favor of 
implementing that rule. The 30-day public comment period will provide 
another opportunity to submit views on the proposed repeal, as well as 
suggestions for future rulemaking. Under these specific circumstances, 
we find that a 60-day comment period is unnecessary and a 30-day public 
comment period will provide a sufficient opportunity for the public to 
fully participate in this rulemaking and that there is good cause to 
reduce the time period to 30 days.
    We also find good cause to provide for a 30-day public comment 
period in light of the potential for harm to Medicare beneficiaries 
should this proposed repeal rule not be finalized before the effective 
date of the MCIT/R&N final rule. If we did not finalize this rule by 
the effective date, there would be confusion and uncertainty among 
beneficiaries and their treating clinicians of coverage if the proposed 
repeal rule became effective and then rescinded at a later date. To 
avoid confusion and uncertainty this rule must be finalized no later 
than December 15, 2021. In order for the repeal rule to be finalized by 
the current MCIT effective date of December 15, 2021, CMS would require 
30 days for public comment once the proposed rule is posted, an 
additional 30 days for CMS to review the comments, draft and post the 
repeal final rule, and an additional 30-day notice before the repeal 
final rule becomes effective.
    As noted previously, the MCIT/R&N final rule did not have 
sufficient patient protections. While the MCIT/R&N rule attempted to 
address concerns about accelerating coverage of new devices, 
significant concerns persist about the availability of clinical 
evidence on the devices when used in the Medicare population, including 
the benefit or risks of these devices with respect to use in the 
Medicare population. For example, there is no requirement that the 
studies for FDA market-approval include Medicare patients. Medicare 
patients have different clinical profiles and considerations due to the 
complexity of their medical conditions and concomitant treatments 
compared to other age groups. Further, the MCIT/R&N final rule takes 
away tools that CMS has to deny coverage when it becomes apparent that 
a particular device can be harmful to the Medicare population. To 
remove a device from Medicare coverage under MCIT/R&N final rule, FDA 
must issue a safety communication, warning letter, or remove the device 
from the market. Therefore, if CMS observes a trend of higher risk or 
harm with a device in the Medicare population, CMS authority to 
expeditiously deny, limit to the appropriate patient population or 
withdraw coverage is limited.
    For all the aforementioned reasons, we find good cause to waive the 
60-day comment period and provide a 30-day comment period for this 
proposed rule.

V. Response to Comments

    Because of the large number of public comments, we normally receive 
on Federal Register documents, we are not able to acknowledge or 
respond to them individually. We will consider all comments we receive 
by the date and time specified in the DATES section of this preamble, 
and, when we proceed with a subsequent document, we will respond to the 
comments in the preamble to that document.
    Chiquita Brooks-LaSure, Administrator of the Centers for Medicare & 
Medicaid Services, approved this document on September 10, 2021.

List of Subjects in 42 CFR Part 405

    Administrative practice and procedure, Diseases, Health facilities, 
Health professions, Medical devices, Medicare, Reporting and 
recordkeeping requirements, Rural areas, X-rays.

    For the reasons set forth in the preamble, the Centers for Medicare 
& Medicaid Services proposes to amend 42 CFR part 405 as set forth 
below:

PART 405--FEDERAL HEALTH INSURANCE FOR THE AGED AND DISABLED

0
1. The authority for part 405 continues to read as follows:

    Authority:  42 U.S.C. 263a, 405(a), 1302, 1320b-12, 1395x, 
1395y(a), 1395ff, 1395hh, 1395kk, 1395rr, and 1395ww(k).


Sec.  405.201  [Amended]

0
2. Section 405.201(b) is amended by removing the definition for 
``Reasonable and necessary''.

[[Page 51335]]

Subpart F--[Removed and Reserved]

0
3. Remove and reserve subpart F, consisting of Sec. Sec.  405.601 
through 405.607.

Xavier Becerra,
Secretary, Department of Health and Human Services.
[FR Doc. 2021-20016 Filed 9-13-21; 4:15 pm]
BILLING CODE 4120-01-P