United States – October 24, 2026 -- The Centers for Medicare & Medicaid Services (CMS) will replace its single annual window for HCPCS Level II code applications with quarterly cycles for drugs and semi-annual cycles for devices, Administrator Seema Verma said at the Medical Device Manufacturers Association (MDMA) Annual Meeting.
CMS expects faster adoption for new technologies under the revised coding calendar
Until now, applicants for new HCPCS Level II codes had one opportunity per year. CMS anticipates the more frequent windows will greatly improve how technologies move through the adoption curve. The agency said additional details on the updated process will follow.
Medicare contractors must apply the Local Coverage Determination process to Category III technologies
For technologies carrying CPT Category III codes, the temporary codes used for emerging technologies, CMS clarified that Medicare contractors must follow the new Local Coverage Determination (LCD) process for every local coverage decision where no existing LCD applies. That includes reviewing the evidence on the technology. CMS posted the clarification online on the same day, within answers to commonly asked LCD questions.
IPPS proposed rule would raise new technology add-on payments
Last week, CMS's Inpatient Prospective Payment System (IPPS) proposed rule included an increase to the new technology add-on payment. That payment gives hospitals additional funds for high-cost cases involving new technology. The rule also proposes modernized payment policies for devices designated by the FDA as Breakthrough Devices.
CMS said the measures together are meant to provide predictable coverage pathways, widen coverage opportunities for transformative technologies, shorten wait times to apply for permanent codes, and modernize payment for innovative services. Verma said the agency is working to remove government barriers without delaying patient care.