EXTON, PA — Lungpacer Medical secured three new medical billing codes for its AeroPace diaphragm neurostimulation system effective July 1, advancing the company’s effort to establish broader reimbursement for hospitals treating patients who require prolonged mechanical ventilation.
The American Medical Association assigned Category III Current Procedural Terminology codes to temporary transvenous diaphragm neurostimulation performed with AeroPace, the Exton-based company reported.
Category III codes provide standardized reporting for emerging medical procedures and generate utilization data that can support future reimbursement decisions. They do not establish permanent coverage or payment rates.
The codes supplement a New Technology Add-On Payment granted by the Centers for Medicare & Medicaid Services that took effect Oct. 1, 2025.
The federal payment allows hospitals to receive up to approximately $23,650 in additional reimbursement per qualifying case to help offset the cost of AeroPace, according to Lungpacer.
“The new Category III CPT codes, together with the NTAP, represent material advancements in our health economics and reimbursement strategy,” Chief Executive Officer Doug Evans stated.
AeroPace temporarily stimulates the phrenic nerves to activate the diaphragm while a patient is receiving mechanical ventilation. Lungpacer contends the treatment can help preserve diaphragm function and support patients’ transition away from ventilator assistance.
Patients requiring prolonged ventilation are among the most resource-intensive populations in hospital intensive care units, creating pressure on staffing, bed capacity and treatment costs.
The new codes give hospitals a standardized mechanism to document the procedure while Lungpacer develops a longer-term reimbursement pathway for the technology.
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