EANS-Adhoc: CMS to acknowledge LifeWatch´s Ambulatory Cardiac Telemetry (ACT) service for its value and proven contribution to the U.S. healthcare system (with document)

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Company Information/LifeWatch AG

08.11.2010

Neuhausen am Rheinfall / Switzerland and Chicago, Illinois / USA -
LifeWatch AG (SIX Swiss Exchange: LIFE), the leading provider of
wireless telemedicine, is today providing further information on last
week´s decision by the Centers for Medicare & Medicaid Services (CMS)
to establish a national pricing guideline for CPT code 93229, the
payment code for the LifeWatch Ambulatory Cardiac Telemetry (ACT)
service. Based on the information currently available, LifeWatch
expects an estimated reimbursement rate of USD 805 which will take
effect from January 1, 2011.

You will find the link for a PDF version of this press release at the
end of this message.

On November 2, 2010, the Centers for Medicare & Medicaid Services
(CMS) announced the establishment of national pricing guidelines for
payment code 93229, which is the CPT payment code used by Medicare
for payment for our ACT service. The national pricing of this code is
effective January 1, 2011.

This reimbursement milestone decision should stabilize the payment
for outpatient telemetry across all Medicare contractors on a
national basis and bring growth and recognition throughout the
insurance industry that Ambulatory Cardiac Telemetry is a recognized,
valuable and effective diagnostic modality deserving coverage from
all commercial insurance carriers as well.

Prior to CMS´s decision last week, local Medicare contractors were
allowed to price the service independently. As of January 1, 2011,
all Medicare contractors will price 93229 based on the announced
national pricing guidelines, adjusted for local geographic factors.
The national pricing is expected to be approximately USD 805 per test
in the Philadelphia area where our receiving center is located,
according to calculations made by the RCSPG. The pricing formula is
very complicated and includes variables such as the "sustainable
growth rate (SGR) and Medical Economic Index (MEI)" which could have
an impact on pricing going forward. The regional adjustments can vary
the price from state-to-state.

Medicare Advantage insurance carriers will play a key role with
regard to this issue. Medicare Advantage is the managed care version
of Medicare administered by commercial insurance carriers. Patients
that are insured through Medicare Advantage are covered for telemetry
even by carriers that are denying reimbursements for the ACT service.
In total, there are 45 million Medicare patients, 11 million of which
are under Medicare Advantage so this represents a substantial
opportunity for LifeWatch. Many commercial carriers were unaware of
their obligations in this regard, so LifeWatch has contacted all
relevant commercial carriers of this requirement to educate them and
confirm coverage for the ACT service.

This decision is amongst others a result of the ongoing and close
cooperation between RCSPG (Remote Cardiac Services Provider Group)
and CMS in recent years. LifeWatch is a founding member in the RCSPG
whose contribution to the process received particular mention by CMS
when it announced the new pricing code.

RCSPG has been working very closely with CMS as an industry group for
over six years addressing a host of reimbursement and coverage
issues. The group appreciated the fact that CMS recognized its active
contribution to the pricing decision and will continue to work with
CMS on issues related to the Medicare methodology for pricing remote
cardiac services in the next years.

Yacov Geva, Chairman and Chief Executive Officer of LifeWatch stated,
"While it is still too early to fully appreciate the impact of this
announcement, it is believed that this development will have a
positive effect on our discussions with commercial insurance carriers
going forward and strengthen our negotiating position on any
reimbursement denial issues."

About LifeWatch AG:

LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on
SIX Swiss Exchange (LIFE), Switzerland, is the leading healthcare
technology and solution company, specializing in advanced
telemedicine systems and wireless remote patient monitoring services.
LifeWatch services cater to individuals, ranging from high-risk and
chronically ill patients, to consumers of health and wellness
products. LifeWatch has subsidiaries in the United States, the
Netherlands, Japan, the United Kingdom, Switzerland and Israel.
LifeWatch AG is the parent company of LifeWatch Services Inc., a
leading US-based cardiac monitoring service provider. LifeWatch has
also introduced a new program for Home Sleep Testing of Obstructive
Sleep Apnea (OSA) patients under the brand name NiteWatch. For
additional information, please visit www.lifewatch.com.

Sign-up for customized E-mail alerts and documentation requests is
available at http://production.investis.com/lifewatch/alert-service/

This press release includes forward-looking statements. All
statements other than statements of historical facts contained in
this press release, including statements regarding future results of
operations and financial position, business strategy and plans and
objectives for future operations, are forward- looking statements.
The words "believe," "may," "will," "estimate," "continue,"
"anticipate," "intend," "expect" and similar expressions are intended
to identify forward-looking statements. LifeWatch AG has based these
forward- looking statements largely on current expectations and
projections about future events and financial trends that it believes
may affect the financial condition, results of operations, business
strategy, short term and long term business operations and
objectives, and financial needs. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions. In light
of these risks, uncertainties and assumptions, the forward-looking
events and circumstances described may not occur and actual results
could differ materially and adversely from those anticipated or
implied in the forward- looking statements. All forward-looking
statements are based only on data available to LifeWatch AG at the
time of the issue of this press release. LifeWatch AG does not
undertake any obligation to update any forward-looking statements
contained in this press release as a result of new information,
future events or otherwise.

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF
AMERICA AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR
PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS
PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES OF LIFEWATCH
AG OR ANY OF ITS SUBSIDIARIES FOR SALE IN THE UNITED STATES OR AN
INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES OF LIFEWATCH
AG OR ITS SUBSIDIARIES IN THE UNITED STATES. IN ADDITION, THE
SECURITIES OF LIFEWATCH AG AND ITS SUBSIDIARIES HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE
OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S.
PERSONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS. ANY
PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE
MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM LIFEWATCH AG
OR ITS SUBSIDIARIES, AS APPLICABLE, AND WILL CONTAIN DETAILED
INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINANCIAL
STATEMENTS OF THE ISSUER.

Attachments with Announcement:
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http://resources.euroadhoc.com/us/CkpmJXqi

end of announcement euro adhoc
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ots Originaltext: LifeWatch AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Woo Kim, Senior Vice President of Strategy and Business Development, LifeWatch

Tel +1 847 813 4299 | Fax +1 847 813 24 48 | E-mail wkim@lifewatch.com

Sensus Investor & Public Relations, Zürich:

Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | E-mail lifewatch@sensus.ch

Branche: Healthcare Providers
ISIN: CH0012815459
WKN: 1281545
Index: SPI, SPIEX
Börsen: Frankfurt / Open Market / XETRA
Berlin / free trade
SIX Swiss Exchange / Main Standard