Biomerica Inc. (NASDAQ: BMRA) has established a scalable pathway to reimbursement for its inFoods IBS diagnostic test within the U.S. Medicare system, securing a review process for claims at a rate of approximately $300 per test.
The company announced on April 16 that a Medicare Administrative Contractor (MAC) confirmed a process for individual claim reviews. According to a company statement, Biomerica and its laboratory partners believe "properly documented claims are positioned for payment" under the existing reimbursement rate set by the Centers for Medicare & Medicaid Services (CMS).
This confirmation is a critical commercial milestone, following CMS's establishment of a national payment rate for the test under the Clinical Laboratory Fee Schedule, effective January 1, 2026. The inFoods test is designed to help physicians identify specific foods that may trigger symptoms in patients with Irritable Bowel Syndrome by measuring patient-specific IgG antibody responses.
The development provides a vital potential revenue stream for Biomerica, which has faced financial headwinds. For the quarter ended February 28, 2026, the company reported a 12% year-over-year decline in net sales to $0.99 million and a net loss of $1.31 million, or $(0.44) per share. The recent financial results were impacted by lower contract manufacturing revenue, making the successful commercialization of new products like inFoods IBS essential for growth.
Access to the large Medicare population significantly de-risks the product's commercial launch. The company has been executing a phased rollout targeting gastroenterology practices and noted positive physician feedback in its latest quarterly report. Securing a clear reimbursement pathway is a key step in driving wider adoption among clinicians and patients.
While this confirmation paves the way for Medicare revenue, Biomerica is also actively pursuing coverage from private payers to broaden market access further. This news provides a potential catalyst for the company, as investors will now be watching for initial revenue recognized from these claims to gauge the test's adoption rate and its ability to reverse the company's recent sales decline.
This article is for informational purposes only and does not constitute investment advice.
