Investing.com -- Biomerica Inc (NASDAQ:BMRA) stock jumped 5.6% in premarket trading Tuesday after the company announced that the Centers for Medicare & Medicaid Services (CMS) has established a $300 national payment rate for its inFoods IBS test.
The pricing determination, which will apply to Medicare-approved claims with service dates beginning January 1, 2026, follows the American Medical Association’s approval of a unique CPT Proprietary Laboratory Analyses code for the test that became effective October 1, 2025.
This development represents a significant commercial milestone for Biomerica, as Medicare is the largest healthcare payer in the United States, responsible for approximately 21% of total healthcare expenditure. The established payment rate is expected to serve as a foundation for negotiations with private insurers.
"The CMS pricing determination is a major milestone for Biomerica and for patients suffering from IBS," said Zack Irani, CEO of Biomerica. "With both a dedicated PLA code and established Medicare pricing, we are well-positioned for continued commercial growth in 2026 and beyond."
The inFoods IBS test identifies patient-specific food triggers that contribute to irritable bowel syndrome symptoms. Clinical trials published in Gastroenterology showed that 59.6% of patients who eliminated trigger foods identified by the test met the FDA standard for abdominal pain reduction, compared to 42.2% in the control group.
With the payment rate now established, Biomerica and its lab partner will work with Medicare Administrative Contractors to attain coverage for the test while using the CMS pricing as a benchmark for negotiations with private insurers such as Aetna, United Healthcare, and Blue Cross.
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