CardioNet Inc. said Wednesday that UnitedHealth, one of the largest health insurers with major operations in Hartford, will not cover CardioNet’s wireless heart-monitoring devices, the Associated Press reports.
CardioNet said UnitedHealth Group Inc. is maintaining its view that “outpatient cardiovascular telemetry is unproven for managing cardiac arrhythmias.” The decision comes about a year after a Medicare administrator slashed reimbursement rates for CardioNet’s products and similar devices. That caused health insurers to lower their rates.
UnitedHealth, the largest publicly traded health insurer based on revenue, is seen as a bellwether for the industry.
In July 2009, CardioNet confirmed that Highmark Medicare Services was cutting its reimbursement rates for wireless heart devices by 33 percent. CardioNet appealed but the cut went into effect Sept. 1. CardioNet has responded by increasing its marketing efforts and cutting costs.
CardioNet said it did not have any information on the coverage plans of other health insurers. It plans to continue working with UnitedHealth in the hope of demonstrating the benefits of its devices and convincing the company to provide at least some coverage.
CardioNet said it will address the effects of UnitedHealth’s decision during its second-quarter report, which is expected in late July. The company is aiming for 30 to 40 percent growth in its procedures this year, but in the first quarter it said procedures rose 23 percent and acknowledged the 40 percent target would be hard to reach.
CardioNet stock, which traded close to $30 in spring 2009, has lost nearly half its value over the last year.
The stock dropped fell 33 cents, or 6.9 percent, to $4.44 in morning trading.
