The Signal | Regulatory Policy

FDA and CMS Propose Coordinated Review to Speed Medicare Coverage for Breakthrough Devices

The proposed RAPID pathway seeks to compress the gap between regulatory approval and Medicare reimbursement for qualifying breakthrough technologies by coordinating clinical evidence reviews early.

By Dr. Dereck Mush, MD, MBA

CEO at Teknon Labs

Published 2026-10-17|4 min read

FDA and CMS Propose Coordinated Review to Speed Medicare Coverage for Breakthrough Devices
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A medical device manufacturer that secures Food and Drug Administration clearance often faces an immediate commercial crisis: a multi-year wait before Medicare agrees to pay for the technology. At the Food and Drug Administration White Oak campus in Maryland, regulators are trying to resolve this structural disconnect. The proposed regulatory bridge, known as the RAPID pathway, represents a coordinated effort by the Food and Drug Administration and the Centers for Medicare and Medicaid Services to align their administrative processes. With the public comment window on the proposal closed, the healthcare sector is now turning its attention to the upcoming administrative response and the publication of the final procedural notice.

The initiative aims to solve a long-standing challenge in healthcare commercialization. Historically, medical device developers faced a sequential process, obtaining regulatory authorization first and only then initiating the lengthy process of securing national coverage. This separation often created a multi-year gap where cleared technologies remained unavailable to patients due to lack of reimbursement. The proposed pathway seeks to establish early communication channels to coordinate evidence development, allowing coverage planning to occur while clinical trials are still being designed. This early coordination ensures that the trial protocols capture the specific endpoints required by insurance decision-makers.

Inside the Proposed Administrative Timelines

The primary administrative goal of the new pathway is to compress the time between regulatory authorization and clinical reimbursement. For qualifying medical technologies that submit sufficient clinical evidence, the proposed framework establishes a parallel timeline. Under this structure, the Centers for Medicare and Medicaid Services would issue a proposed National Coverage Determination alongside the regulatory authorization decision from the Food and Drug Administration. This parallel action represents a departure from traditional administrative workflows, where the coverage review only begins after the regulatory clearance is finalized.

Following this initial step, the timeline diverges slightly based on the regulatory classification of the medical technology. For eligible Class II devices, the agencies aim to issue a final National Coverage Determination approximately 60 days after authorization. For more complex Class III devices, the timeline extends to approximately 90 days. The distinction between Class II and Class III timelines reflects the differing levels of clinical risk associated with these technologies. Class II devices, which typically include moderate-risk clinical systems, are targeted for the faster 60-day final determination. Class III devices, which often involve life-sustaining or implantable technologies subject to Premarket Approval, require a slightly longer 90-day review period to ensure thorough evaluation of the clinical data.

Administrative officials have emphasized that these timelines are operational goals rather than statutory guarantees. The realization of these accelerated targets depends entirely on the completeness of the clinical evidence submitted by the sponsoring team during the pre-authorization phase.

Strict Eligibility and Exclusion Criteria

Device developers must align clinical trial protocols with Medicare beneficiary outcomes early in the development cycle.
Device developers must align clinical trial protocols with Medicare beneficiary outcomes early in the development cycle.The HealthTech Signal

The proposed pathway does not offer a broad entry point for all medical technologies. The eligibility criteria are narrow, focusing on specific categories of innovative devices. To qualify, a technology must be designated as a Breakthrough device and must engage with the program at the Investigational Device Exemption pre-submission stage.

The eligibility pool is further restricted to specific clinical development programs. This includes certain Class II devices participating in the Total Product Life Cycle Advisory Program, alongside eligible Class III candidates undergoing the Premarket Approval process.

Furthermore, several statutory and administrative hurdles remain in place. Sponsoring teams must satisfy existing benefit-category requirements and separate-payability conditions to qualify for coverage. The proposal also explicitly excludes in vitro diagnostics from participating in this accelerated pathway, meaning diagnostic laboratory technologies must continue to navigate traditional coverage routes.

The Clinical Evidence Standard

The proposed pathway coordinates efforts between federal food and drug regulators and Medicare administrators.
The proposed pathway coordinates efforts between federal food and drug regulators and Medicare administrators.The HealthTech Signal

The core of the administrative challenge for device developers lies in trial design. Securing a spot in the accelerated pathway requires that clinical studies specifically address the demographic characteristics and clinical needs of Medicare beneficiaries. Sponsoring teams must design trials that measure relevant health outcomes in older adults and disabled populations, rather than relying solely on younger, healthier trial cohorts. This requires a shift in how clinical researchers recruit participants and structure their primary endpoints.

Securing a favorable coverage decision under this program does not automatically translate into widespread clinical adoption or paid utilization. Even with an active National Coverage Determination, device manufacturers may still face requirements for additional evidence development post-market. Clinical teams must continue to treat evidence generation as an ongoing operational requirement rather than a single administrative milestone.

Furthermore, the administrative process does not end with a successful National Coverage Determination. Device manufacturers must recognize that coverage is only one component of commercial access. Sponsoring teams must simultaneously manage coding applications, establish local payment rates, and drive provider adoption across diverse health systems. Each of these components represents a separate commercial milestone that must be actively managed alongside the federal regulatory process.

For technology developers, the strategic takeaway is the necessity of earlier planning. Device teams must work through complex reimbursement, coding, and clinical evidence questions while the underlying clinical study can still be modified to meet the expectations of both agencies.

Source: The HealthTech Signal
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