GI Dynamics, Inc. (ASX: GID) today announced that Clalit Health Services, Israel's largest and one of the world's largest health maintenance organization (HMO), has established a reimbursement coverage policy for EndoBarrier® Therapy, an endoscopically-delivered device therapy approved for the treatment of type 2 diabetes and obesity.
This coverage policy entitles participating hospitals in Israel to negotiate with Clalit Health Services on the total charge for EndoBarrier Therapy. Patients with type 2 diabetes and obesity who are insured by Clalit Health Services and enrolled in the Mushlam supplementary insurance plan are eligible to receive reimbursement for at least 50% of the total agreed-upon charge for EndoBarrier Therapy. Approximately 2.7 million people are enrolled in Clalit Mushlam, the biggest, broadest and most comprehensive supplementary health plan in Israel.
Stuart A. Randle, president and CEO of GI Dynamics said, "Achieving this reimbursement in Israel follows our recent preliminary reimbursement code in the Netherlands and NUB Status 1 reimbursement designation in Germany, reinforcing the strategic impact of our foundational approach to reimbursement-driven markets. We are pleased that one of the world's largest and most progressive HMOs has become the first organization to widely adopt our innovative technology, underscoring the clinical and economic value of EndoBarrier Therapy in treating type 2 diabetes and obesity. We will continue to work closely with Clalit and Medison, our distributor in this region, to make EndoBarrier more broadly available to physicians and patients in Israel."
According to the Israel Diabetes Association, there are an estimated 600,000 Israeli adults currently living with diabetes, and approximately one-third of these are undiagnosed.
"We are extremely pleased to partner with GI Dynamics to bring people living with uncontrolled diabetes and obesity greater access to what we believe is a highly effective, less invasive procedure to lower blood sugar and reduce weight," said Meir Jacobsohn, CEO of Medison. "We have already seen a significant demand for EndoBarrier Therapy among Israeli men and women with these conditions. We are pleased with this reimbursement decision from Clalit, which will now make EndoBarrier Therapy a more accessible treatment option for people to improve their health and quality of life."
More than 1,300 patients worldwide have been treated with EndoBarrier Therapy, the world's first endoscopically-delivered device therapy for patients with type 2 diabetes and obesity. EndoBarrier received medical device registration approval from the Israeli Ministry of Health in February 2012 for the treatment of type 2 diabetes and obesity for up to 12 months. It is also approved for use in Europe and Australia, as well as by a growing number of countries in South America and the Middle East.
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