VertiFlex®, Inc. Announces Two Significant Reimbursement Milestones to Expand Market Opportunity for Superion® Interspinous Spacer

AMA CPT® Editorial Panel Approves Category I
Code for Interspinous Spacers and CMS Adds Interspinous Spacers to List
of Ambulatory Surgery Center Covered Surgical Procedures

SAN CLEMENTE, Calif.–(BUSINESS WIRE)–VertiFlex®, Inc., a leading innovator of advanced minimally
invasive interventions for spinal stenosis, announced today that
the AMA CPT® Editorial Panel has approved the addition of
Category I CPT codes to describe one and two level insertion of
interspinous spacers at their October 2015 meeting. The new Category I
codes will replace the existing Category III CPT codes effective January
1, 2017.

Further, the company has announced that the Centers for Medicare and
Medicaid Services (CMS) has added the insertion of interspinous spacers
to their list of approved surgical procedures in Ambulatory Surgery
Centers, effective January 1, 2016.

“We are pleased with both decisions from the AMA and CMS to dramatically
strengthen coding and broaden coverage for interspinous spacer
procedures,” said Earl R. Fender, President and Chief Executive Officer
of VertiFlex, Inc. “The transition to a Category I code will erase the
longstanding uncertainty associated with coverage and payment of
Category III codes for facilities, physicians, and patients. The
inclusion of Superion’s minimally invasive procedure in ASCs will afford
Medicare beneficiaries increased access to care. Both of these important
reimbursement milestones will dramatically expand the market opportunity
for Superion, for spine specialty physicians.”

Dr. Porter McRoberts of Holy Cross Orthopedic Institute remarked, “Like
many of my colleagues, I’m excited by the prospect of offering our
patients access to this promising technology in the ambulatory surgery
environment. This procedure, when performed in an ASC, has the potential
for significant savings in cost, and presents our patients with an
opportunity to be treated effectively in a less demanding and
time-consuming manner than in the hospital environment.”

The Superion Interspinous Spacer System is a minimally invasive
spinal implant designed to treat moderate lumbar spinal stenosis. Once
in place, it is intended to reduce pressure on the affected nerves and
allow patients to return to a more active lifestyle. Superion received
FDA PMA Approval in May 2015 and has been implanted in over 2000
patients worldwide.

About VertiFlex, Inc.

VertiFlex is a privately held medical device company dedicated to the
advancement of minimally invasive solutions for the treatment of lumbar
spinal stenosis, which is the leading cause of spinal surgery in the
elderly. Founded in 2005 and headquartered in San Clemente, CA,
VertiFlex has developed proprietary, minimally invasive technologies for
performing both indirect and direct decompressions of the lumbar spine.
These procedures fill the gap in the stenosis treatment continuum
between conservative care and traditional spine surgery, providing new
options for interventional spine physicians and less invasive options
for traditional spine surgeons. To date, VertiFlex has compiled the
largest, most rigorous body of device clinical evidence related to
lumbar spinal stenosis.

Contacts

VertiFlex, Inc.
Jeff Swiecki, 949-940 1400
info@vertiflexspine.com
www.vertiflexspine.com