Projected outlook for the $670 million US Minimally Invasive Spinal Fusion Market has dimmed, according to Millennium Research Group

December 16, 2009—Waltham, Massachusetts— According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, although the US minimally invasive spinal fusion market will expand at a compound annual growth rate of over 12% through 2014, reimbursement concerns in certain segments will limit growth in the overall market, which previously had been forecast at almost 20%.

MRG’s US Markets for Minimally Invasive Spine Technologies 2010 report finds that the complexity associated with the Category III reimbursement code for the TranS1 Axial Lumbar Interbody Fusion (AxiaLIF) procedure has made it difficult for some surgeons to receive full reimbursement. As a result, some surgeons have limited their use of the technique in their practice, and some have been prevented from adopting the procedure at all. Although reimbursement issues limited AxiaLIF procedure growth in 2009, TranS1 has already begun to combat the issue with increased education to both current and future clients to minimize reimbursement problems.

Similarly, in 2008 and 2009, NuVasive’s eXtreme Lateral Interbody Fusion (XLIF) procedure was deemed experimental and denied reimbursement by major insurance providers Aetna, Cigna, and UnitedHealth Group in the US. The procedure, which is currently reimbursed by the Centers for Medicare and Medicaid Services (CMS) and other insurance providers under the anterior approach, will continue to receive nationwide reimbursement; however, these unfavorable decisions have industry insiders questioning whether other private insurance providers will soon follow suit.

“Growth of the lateral fusion market will definitely be hampered by the lack of coverage from these three private insurers, which cover over 100 million people in the US,” says Deanna Vankessel, Analyst at MRG. “Instead of performing an XLIF, some surgeons will employ other minimally invasive approaches, such as percutaneous transforaminal or posterior techniques; however, the presence of nationwide CMS coverage for the XLIF and the continued release of favorable clinical data demonstrating its efficacy will curb the negative impact of these insurance providers’ decisions.”

MRG’s new report, US Markets for Minimally Invasive Spine Technologies 2010, serves as a tool for evaluating the performance of the minimally invasive spine technology market from 2008 to 2014. The report provides critical insight into trends that will fuel market growth for minimally invasive spinal fusion, facet fixation device, intradiscal therapy, and discography device markets. With detailed analysis of procedures, average selling prices, units, average selling prices, revenues, and competitive dynamics this report will allow readers to trace current and emerging market trends, identify opportunities, and track competitors.