idea-019 · business case
Who pays, from which budget, how much, and 2-4 commercial routes to first revenue — every figure below traces to a copied claim or a declared assumption, and the routes are laid out unranked. Choosing a commercial strategy is a Tier 3 act, so this page presents options and stops.
Intended use: For prescription use in the home by adults with symptomatic neurogenic orthostatic hypotension due to primary autonomic failure (Parkinson disease, multiple system atrophy, or pure autonomic failure) who remain symptomatic despite non-pharmacologic measures, to apply servo-controlled abdominal compression automatically on assumption of an upright posture and to release it on return to a seated or recumbent posture, to reduce orthostatic symptom burden and increase upright standing time.
Read this first. The previous build of this case said Medicare would pay for the controller as a capped monthly rental. That premise is refuted. The July 2026 DMEPOS (durable medical equipment, prosthetics, orthotics and supplies) fee schedule puts E0650 (a HCPCS code for durable medical equipment), E0651 and E0652 in the inexpensive-or-routinely-purchased category on every pricing line, not capped rental claim 117refuted. The loop record's IR-20 claim 117 came back refuted absorbed this, because the P0 the original shape shape was always a patient-owned purchase. This case is rebuilt on that cadence. A placement in the compressor family is paid once, and the only recurring line left is replacement garments, which nobody has checked. A published allowable now exists for every family code claim 107verified. But three things are still open: which code the device would bill under, whether its cost clears that code's allowable, and whether any coverage policy reaches nOH (neurogenic orthostatic hypotension). So the page shows what one placement is paid, and not whether that is enough.
The chain has four links, and the file has verified evidence for only one of them. That one is the rule saying Medicare Advantage (Medicare Advantage) follows Traditional Medicare's benefit and coverage outcome.
Six questions that the rubric's Factor 2 collapses into one number. Each has its own evidence position and one basis. No score, no tier, no composite. Read the coverage line first. Then note that the one verified pillar is a verified obstacle, and that the new verified fact this rebuild uses (the fee schedule) sits inside row 2b without settling it.
| # | Question | Finding | Basis |
|---|---|---|---|
| 2a | Coding route — Cat I / Cat III / unlisted / HCPCS (Healthcare Common Procedure Coding System) II / none | HCPCS Level II. No existing code describes this device, and a CMS decision picks the route. The pneumatic-compressor family exists (E0650, E0651, E0652), as do the trunk and chest appliance codes (E0656, E0657) and the miscellaneous E1399 claim 10unconfirmed. That tag is held by its negative half; the code-existence half reads verified in the note. Every non-segmental appliance descriptor in E0650-E0676 names a limb, and none names an abdominal appliance or a posture-triggered sustained-pressure device. So the device bills under an accepted descriptor mismatch, under a new code, or under E1399, and choosing among those is a PDAC (Pricing, Data Analysis and Coding contractor)/CMS coding determination claim 115unconfirmed. That CMS will assign a billable code at all is a future act claim 40unconfirmed. Since the fee schedule landed, this row also sets the price. The one-time purchase allowable differs about sevenfold between E0650 and E0652 (see 2b), so the coding outcome is also the payment outcome. This is not a CPT (Current Procedural Terminology) question. No CPT code is involved, so cpt was not run and no descriptor is quoted | claim 115unconfirmed |
| 2b | Payment adequacy — does the rate clear a stated cost floor | A rate now exists on one side. There is no cost floor on the other, so adequacy is still open. The July 2026 DMEPOS fee schedule publishes an allowable for E0650, E0651, E0652 and E0656 claim 107verified. The compressors are category IN and are paid as a purchase, not capped rental claim 117refuted. Non-rural new-purchase (NU) allowables across the contiguous states and DC: E0650 $872.43-$1,026.39, E0651 $1,112.52-$1,308.85, E0652 $6,422.01-$7,555.31. These are allowed amounts, and coinsurance comes out of them; the Verifier read them into the note on claim 96unconfirmed and claim 23unconfirmed, and both tags are held by their unsourced halves. The cost side is an unbuilt cost model: a controller plus the garments consumed over its life claim 92unconfirmed. The proposition that this clears the allowable, at planned volume and at a tenth of it, is the one this row turns on, and it has no cost figure behind it claim 96unconfirmed. Which allowable is the denominator is 2a's question | claim 96unconfirmed |
| 2c | Practice-expense headroom — does the PE portion cover the device | No practice-expense portion exists on this route, by construction, provided the device is DME. A supplier-billed home item is not furnished incident to a physician service, so no PFS (physician fee schedule) practice-expense RVU (relative value unit) carries its cost. rvu E0650 → refuted: "not priced under the PFS … it may still be paid under OPPS, the ASC list or DMEPOS, none of which this connector reads". The condition on this row is the benefit category. If CMS did not treat the device as DME, no PE line would pick it up either, because nothing in the file puts it in an office service | claim 32unconfirmed |
| 2d | Site of care & bundling — office/facility differential, DRG or APC packaging | Home, supplier-billed. There is no facility claim to package the device into, but there is a bundling question inside DME, and after the refutation it is the only recurring line. No inpatient DRG or packaged OPPS code applies to an item dispensed to a patient's home. apc E0650 → unconfirmed, no data/opps_addendum_b.csv, which is a tooling gap and not a finding; drg has no cache either and no DRG is in question. The exposure that bites is the garments. Whether Part B pays separately for replacement bladders and garments, or treats them as included in the compressor payment, is unchecked claim 122unconfirmed. The Verifier's note on that claim records that the fee schedule prices appliance codes as separate lines, but separate payability is a DME MAC (durable medical equipment Medicare administrative contractor) policy-article rule that nobody has read. Residual cadence exposure: the trunk and chest appliances are category CR, with E0656 priced on a monthly rental line only, $82.35 non-rural claim 107verified. If CMS coded this device's garment as a trunk appliance, that half of the system would be paid as a capped rental, not a purchase | [gap: neurogenic-orthostatic-hypotension.reimbursement.pneumatic-appliance-replacement-payment] |
| 2e | Coverage — has any payer agreed to pay for this indication | No payer. The verified evidence runs against coverage. By its own device description, NCD 280.6 (a Medicare national coverage determination number) covers an arm or leg garment that is intermittently inflated and deflated. It does not reach a sustained-pressure abdominal device claim 116verified. Its covered indications are lymphedema and venous stasis ulcers, not OH claim 9verified. A future NCD (national coverage determination) or LCD (local coverage determination) reaching nOH is a CMS/DME MAC (Medicare administrative contractor) act nobody has been asked to take claim 41unconfirmed. The DME MAC LCD L33829 (a Medicare local coverage determination number) has never been read claim 118unconfirmed. No accelerated route is open today: RAPID is a notice whose comment period closes 2026-10-13 claim 15verified, TCET is paused claim 16verified, and MCIT was repealed before it operated claim 18verified. The same notice excludes a device "already the subject of a controlling Medicare NCD" claim 13verified, and whether 280.6 would be read as controlling here is a CMS judgment. Because MA follows NCDs claim 120verified, one coverage decision governs both books. The refutation of claim 117refuted changes nothing here: a purchase allowable is still not coverage | claim 116verified |
| 2f | Ex-US pathway — DE NUB/G-DRG, UK NICE (National Institute for Health and Care Excellence)/OPCS-4 | Permanently unconfirmed, and not for lack of research. launch_jurisdiction: is US. No connector in this repo reaches a non-US payment system, and no claim in the candidate speaks to one in either direction. The two non-US clinical anchors in the file (the Innsbruck binder cohort and the EFNS guideline) are clinical facts, not payment facts | — none |
Pillars on verified claims: 1/6 · on assumptions: 0 · queued as research: 1
Of the other four pillars, 2a, 2b and 2c rest on unconfirmed claims and 2f rests on nothing. The one verified pillar (2e) verifies an obstacle: the existing national coverage determination does not reach this device. What is verified is that no coverage exists, not that some does. The line moved from the previous build (1 verified · 0 assumptions · 2 research) in one place only. 2b no longer waits on a fetch, because the fee schedule is read, but it now rests on the cost-of-goods claim the rate has to be set against. That claim is unconfirmed, so the row is not counted as verified.
Three distinctions kept apart deliberately:
Verdicts recorded where a check was run, whatever came back. Every run was made cold during this build:
python3 -m connectors payment E0650|E0651|E0652 --jurisdiction US → verified, local cache of the CMS DMEPOS fee schedule, July 2026, category IN on every line. Re-running a lookup does not create a new basis. The figures travel as claim 107verified (that they are published) and claim 96unconfirmed (the amounts, in the Verifier's note).
python3 -m connectors payment E0656 --jurisdiction US → verified, RR line only, category CR, as recorded at claim 107verified.
python3 -m connectors hcpcs E1399 --jurisdiction US → verified, "Durable medical equipment, miscellaneous", as recorded at claim 115unconfirmed.
python3 -m connectors coverage E0650 --jurisdiction US → refuted: No NCD or LCD in the cached coverage file names E0650. The Verifier recorded at claim 118unconfirmed and claim 122unconfirmed that control codes also refute against this cache while NCD 280.6 plainly governs these devices. So this verdict describes the cache, not the policy, and it is not used as a basis.
python3 -m connectors procedures E0650|E0651|E0652 --jurisdiction US → verified, the CMS DMEPOS utilization file, with the service year not stated in the file. These are limb-compressor volumes for lymphedema and venous disease, recorded at claim 25verified and quoted under the money model as context only.
python3 -m connectors rvu E0650 --jurisdiction US → refuted, not priced under the PFS. That is expected for a DMEPOS code, and it is the basis for 2c's "no PE portion", read together with claim 32unconfirmed.
python3 -m connectors apc E0650 --jurisdiction US → unconfirmed, no OPPS cache. It is not load-bearing for a home DME item.
The size comes from the market model and is not rebuilt here. That model predates the refutation. Its coverage line reads three of twelve legs on verified claims, and its modeled band is "not computable". Its controller-payment and persistence legs, and its framing of the unit as "one placement cycle" across a rental period, rest on the capped-rental reading that claim 117refuted now contradicts. Its bracketed citations have not moved, so stale.py does not flag it. It needs a rebuild anyway (/market-model idea-019). This case therefore quotes only its three bounded upstream legs, which the refutation does not touch. It then sets out the unit economics the file can support, on the purchase cadence.
| Line | Figure | Backing |
|---|---|---|
| US people with Parkinson disease, age 45+ (market model leg 1) | 680,000 counted in 2010; about 930,000 projected for 2020 (a projection, not a count); the authors call both minimum estimates | claim 81verified |
| The unconfirmed PD (Parkinson disease) headline the leg replaces | about one million, plus 90,000 newly diagnosed per year; not used | claim 21unconfirmed |
| Share of PD with neurogenic OH (leg 2) | 26% pooled; the market model's Low of 19.6% applies the same paper's publication-bias adjustment to that figure; heterogeneity I² 96% | claim 22verified |
| US people with MSA, age 30+ (leg 3) | 41,133 on the one-claim definition, 2021; the two-claim definition roughly halves it | claim 80verified |
| MSA nOH share, PAF (pure autonomic failure) count, diagnosed-and-still-symptomatic share (legs 4-6) | not established | claim 24unconfirmed |
| Medicare share of the eligible population (leg 7) | not established | claim 44unconfirmed |
| Share in which the device is covered and paid (leg 8) | not established; a future coverage act | claim 41unconfirmed |
| Medicare Advantage inside the same benefit decision as fee-for-service | yes, for basic benefits | claim 120verified |
| How the compressor family is paid | a one-time purchase (category IN), not a capped monthly rental; the capped-rental reading is refuted | claim 117refuted |
| Whether an allowable is published for each family code | yes, for E0650, E0651, E0652 and E0656 | claim 107verified |
| New-purchase allowable per placement, by code (non-rural, contiguous states and DC) | E0650 $872.43-$1,026.39 · E0651 $1,112.52-$1,308.85 · E0652 $6,422.01-$7,555.31; tag held by the claim's cost-of-goods half | claim 96unconfirmed |
| Which of those codes the device bills under | not established; a coding determination, and it moves the allowable about sevenfold | claim 115unconfirmed |
| If paid through the rental line instead of a purchase | total payments capped at the purchase allowable | [assumption A7 A torso-mounted accelerometer or…] |
| Split of the allowable between Medicare and the beneficiary | Medicare 80%, beneficiary 20% of the lesser of charge and fee schedule | [assumption A8 A bench rig can demonstrate that the device…] |
| Whether the beneficiary pays that residual | not established | claim 36unconfirmed |
| How often one beneficiary's controller can be paid for | at most once per five-year reasonable useful lifetime in ordinary use | [assumption A9 A posture-triggered abdominal compression…] |
| What one placement is, physically | a reusable controller, single-patient multi-use garments, and a charger, with different service lives | claim 92unconfirmed |
| Garments consumed per placement per year | more than one | [assumption A6 Mechanism and clinical-risk reasoning] |
| Whether those garments are paid separately | not established; now the only recurring line | claim 122unconfirmed |
| If the garment were coded as a trunk appliance | capped rental, E0656 at $82.35 per rental month non-rural | claim 107verified |
| Manufacturer revenue per placement, third-party supplier shape | the supplier's one-time acquisition price, below the purchase allowable the supplier collects | [assumption A1 No FDA 510] |
| Manufacturer revenue per placement, manufacturer-as-supplier shape | the purchase allowable itself, less the cost of being a supplier | [assumption A2 No granted De Novo request in the FDA De…] |
| Cost of goods per placement against the allowable | not established on the cost side; the proposition is that it clears at planned volume and at one-tenth of it | claim 96unconfirmed |
| Share won, price to the buyer, gross margin | not established; no claim in the file carries any of the three, and this case does not supply them | claim 24unconfirmed |
| Cash price the patient would pay with no payer | not established | [assumption A3 openFDA device classification lists product…] |
| Does contribution margin cover the programme's fixed cost before a 510(k) (premarket notification) follower arrives | open; the last line of the chain and the one the other lines feed | claim 123unconfirmed |
| Largest single fixed-cost item in that programme | the sham-controlled pivotal study | [assumption A5 This candidate's own bladder geometry and…] |
| Context only, never a floor: Medicare FFS (fee-for-service) purchase beneficiaries for the incumbent limb compressors | E0650 97 · E0651 34,399 · E0652 6,792; lymphedema and venous volumes, not nOH patients; service year not stated in the file | claim 25verified |
Read the bolded rows together: what changed and what did not. With the compressor family in category IN, a placement pays once claim 117refuted. The fleet-and-annuity reading of the previous build is gone. Under A1 No FDA 510, the manufacturer sells one controller per placement into a supplier's inventory at a price below the purchase allowable [assumption A1 No FDA 510]. The supplier does not recycle a rented controller to the next beneficiary, because title passes on purchase. Under A2 No granted De Novo request in the FDA De…, the manufacturer collects the allowable once and carries the supplier's accreditation, delivery, fitting, documentation and collections [assumption A2 No granted De Novo request in the FDA De…]. These are still two businesses. The file does not choose between them, and neither does this case.
What the refutation made heavier. A one-time payment puts all the weight on two lines. The first is whether cost of goods clears the allowable of whichever code applies claim 96unconfirmed. That allowable swings about sevenfold with the coding outcome claim 115unconfirmed. The second is whether anything is paid after the purchase: garments, if separately payable claim 122unconfirmed and short-lived [assumption A6 Mechanism and clinical-risk reasoning], and a replacement controller no sooner than the reasonable useful lifetime [assumption A9 A posture-triggered abdominal compression…]. If garments are bundled, the placement is a single controller event, repeated at most once per lifetime.
The unit is a placement, and no annual revenue line is written. Turning placements into a year needs two inputs. One is the rate at which new patients become eligible. That incidence leg is draftable in the market model's gap register and is not yet a claim. The other is the replacement interval [assumption A9 A posture-triggered abdominal compression…]. The incumbent-compressor volume above is not a substitute. It is paid under an NCD that does not reach this device claim 116verified.
State the market and adoption verdicts explicitly, from cold runs during this build:
python3 -m connectors market "Most US adults with symptomatic nOH due to primary autonomic failure who would be prescribed this device are Medicare beneficiaries" → unverifiable: "no free, authoritative, machine-queryable source. Stays unconfirmed permanently unless a human attaches a licensed report". This is the verdict already recorded at claim 44unconfirmed.
python3 -m connectors market "The contribution margin US sales of this device can generate at the Medicare purchase allowable covers the fixed development programme before a 510(k) follower arrives" → unverifiable, the same verdict recorded at claim 123unconfirmed.
python3 -m connectors adoption "Neurologists and autonomic specialists would prescribe a device in an indication currently managed with midodrine and droxidopa and accept DME prior-authorization burden" → unverifiable: "needs primary research (interviews, survey, published preference study) … Do NOT substitute a model's own estimate of stakeholder behaviour". Recorded at claim 29unconfirmed.
python3 -m connectors adoption "A DMEPOS supplier will stock, deliver, fit and bill the device without a device-specific HCPCS code" → unverifiable. Recorded at claim 37unconfirmed.
python3 -m connectors adoption "Adults with symptomatic nOH or their families will pay the full purchase price out of pocket where no payer pays" → unverifiable. Recorded at claim 126unconfirmed, this case's A3 openFDA device classification lists product….
The revealed-behaviour twins of these class-3 questions are already rows filed by the market model: home pneumatic-compressor persistence, and droxidopa uptake after launch. This case files no further rows.
Four routes to a first dollar, in no order. The first three share a regulatory spine and diverge on who pays. None is ranked here, and choosing between them is a human decision. The refutation of claim 117refuted changed the payment cadence under Route A. It did not add, remove or reorder a route.
device_class row the Generator
carries; a 510(k) under a Class II regulation (890.5650 or 870.5800), not the Class I exempt
truncal-orthosis route claim 105unconfirmed, claim 54verified; FDA not reading the
posture-triggered design, or its distribution to nOH patients, as an OH intended use
[assumption A4 PMID 27271310]; and buyers paying cash, since no code, benefit category or coverage
argument applies to a device with no medical claim to reimburse.
What all four share. Each route rests on at least one assumption this case declared. Only Route A now has a published payment amount on record claim 107verified, and it is a range across three codes whose selection is open, set against a cost nobody has built. Routes A and C also share the coverage question, B and D share a cash buyer, and A, B and C share the pivotal study. Most of the file's unresolved evidence is common to more than one route, so resolving it moves several routes at once and does not sort them.
Every assumption cited above, with what would settle it and who could run it. Five are already on file from the previous build (claims 125-129) and were not re-appended. Four are new this build and were appended as unverified claims 136-139.
| # | Assumption | Falsifier | Owner |
|---|---|---|---|
| A1 No FDA 510 | With a third-party DMEPOS supplier and the compressor family paid as a purchase (category IN), the manufacturer's revenue per placement is the supplier's one-time acquisition price for controller and garments, below the NU purchase allowable the supplier collects (claim 136unverified, new this build; it replaces claim 124unconfirmed, whose capped-rental premise is refuted) | Acquisition-price quotes for an E0650-E0652 home pump from three or more accredited DMEPOS suppliers, set against the published NU allowables. Revealed-behaviour twin: what a publicly reporting pneumatic-compression manufacturer discloses in its annual filing about revenue through DME suppliers versus direct billing | 80_commercial (supplier interviews); 45_research (filings) |
| A2 No granted De Novo request in the FDA De… | A manufacturer can enrol as its own accredited DMEPOS supplier under 42 CFR 424.57 and bill the DME MAC directly for its own device (claim 125unconfirmed, on file) | The Verifier's regulation 424.57 --expect "manufacturer" returned unconfirmed, a missing phrase and not a refutation, and a re-run this build returned the same. What settles it is a human read of the 424.57(c) supplier standards and CMS-855S enrolment rules for any bar on a manufacturer billing its own product | Market access (human read) |
| A3 openFDA device classification lists product… | Adults with symptomatic nOH, or their families, will pay the device's full price out of pocket where no payer pays (claim 126unconfirmed, on file) | A priced deposit or pre-order test among at least 20 patients recruited through autonomic or movement-disorder clinics. Revealed-behaviour twin: published cash-pay uptake of a non-covered home device in a Parkinson disease population | 80_commercial with a clinical partner |
| A4 PMID 27271310 | A powered abdominal garment labelled with no OH, BP or symptom claim can be sold to people with nOH without FDA treating its posture-triggered design or its distribution as an OH intended use under 21 CFR 801.4 (claim 127unconfirmed, on file) | A Q-Sub on the claim-stripped labelling. The 801.4 text is a registry read, and its "design or composition … circumstances surrounding the distribution" language bears against the proposition without settling it | Regulatory (Q-Sub, human-run) |
| A5 This candidate's own bladder geometry and… | The sham-controlled pivotal study is the largest single fixed-cost item in the development programme (claim 128unconfirmed, on file) | A costed programme: CRO quotes for the pivotal and feasibility studies, the FDA De Novo user fee in force, and a coding and coverage consultant estimate, compared line by line | Operations-NPI (new product introduction) / human |
| A6 Mechanism and clinical-risk reasoning | A single-patient multi-use abdominal garment worn every upright period and cleaned on its labelled regimen lasts less than a year, so each placement uses more than one garment a year (claim 129unconfirmed, on file) | Bench wear and laundering-cycle testing of a candidate garment to seam or bladder failure. Registry twin: the replacement frequency that L33829 and its policy article allow for pneumatic appliances, which sits inside 2d's commissioned row | Engineering (bench); 45_research (the LCD read) |
| A7 A torso-mounted accelerometer or… | Under 42 CFR 414.220(b), an IN-category item is paid on a rental basis or as a lump-sum purchase, and total payments may not exceed the purchase fee schedule amount, so the RR line cannot earn more than the NU allowable (claim 137unverified, new) | regulation 414.220 --title 42 --expect "may not exceed the fee schedule amount recognized for the purchase". A probe this build returned the paragraph (b) text; the Verifier's run is what tags it | Verifier (registry text) |
| A8 A bench rig can demonstrate that the device… | Under 42 CFR 414.210(a), Medicare pays for DME on the basis of 80 percent of the lesser of actual charge and fee schedule amount, leaving the beneficiary the remaining 20 percent (claim 138unverified, new) | regulation 414.210 --title 42 --expect "80 percent of the lesser of". A probe this build found the phrase. The beneficiary-share half is the arithmetic complement, which a human read of the Part B coinsurance rule confirms or corrects | Verifier (registry text); market access (coinsurance read) |
| A9 A posture-triggered abdominal compression… | Under 42 CFR 414.210(f), Medicare does not pay to replace a DME item for the same beneficiary before its reasonable useful lifetime, five years unless CMS sets another, except for loss, theft or irreparable damage, so a controller is paid at most once per five years in ordinary use (claim 139unverified, new) | regulation 414.210 --title 42 --expect "reasonable useful lifetime", then --expect "5 years" read in context of paragraph (f). A probe found both phrases but not their context. Then a human check that no shorter lifetime is set for E0650-E0652 | Verifier (registry text); market access (human read) |
Cheapest falsifiers: A7 A torso-mounted accelerometer or…, A8 A bench rig can demonstrate that the device… and A9 A posture-triggered abdominal compression…. Each is a CFR paragraph the regulation connector already reads, and a probe during this build found the key phrase for each. Of the three, A9 A posture-triggered abdominal compression… moves the most. It is the replacement interval that, together with an incidence leg, would turn "one placement" into an annual revenue line. It is also the one where the connector found the phrase without showing its context, so a Verifier run plus a read of paragraph (f) settles it or corrects it.
Every quantity this case needs and nothing in the file supplies. These are the work items.
stale.py does not see this, because its bracketed tags did not
move. /market-model idea-019 is the next pass for the size question.
_shared/plain-language.md