CMS Sets $1,000 Price for SmartLids Supply in 2027 Fee Schedule
Key Facts
The U.S. Centers for Medicare & Medicaid Services (CMS) set a price of $1,000 for the single-use SmartLids component by creating supply code SD397 in its update to the 2027 calendar-year Physician Fee Schedule. Sight Sciences said in an announcement that the price takes effect on January 1, 2027, and represents an assessment of a supply under direct practice expense. The decision applies to a component used with the TearCare system and does not, by itself, determine what Medicare or any insurer will pay for the procedure. The company said the new code does not establish a national Medicare payment rate or separate reimbursement for SmartLids. The price’s effect on actual payments therefore remains tied to payer coverage and reimbursement policies.
SmartLids is associated with the adaptive thermal procedure for meibomian glands, which is reported under CPT code 0563T. According to Sight Sciences, open-eye wearable devices deliver heat to the eyelids, after which the glands are manually expressed. The company said the 0563T procedure code remains priced by the contracting entity, keeping procedure pricing separate from the set price for the SmartLids supply. The company also said the addition of SD397 does not change this arrangement or guarantee separate reimbursement for the covers. Payment decisions remain subject to the coverage and reimbursement rules applied by payers, including Medicare administrative contractors.
The price designation comes as Sight Sciences’ interventional dry eye business expands its revenue. The segment recorded revenue of $3.9 million in the three months ended September 30, 2026, compared with $0.2 million in the same quarter of 2025. For the nine months ended on the same date, revenue was $7.9 million, compared with $0.9 million in the year-earlier period. Quarter over quarter, third-quarter revenue rose 45% from $2.7 million in the second quarter of 2026 to $3.9 million. The company described third-quarter revenue as a record and linked the growth to higher sales volume and improved pricing.
The segment’s revenue had declined to $1.6 million in fiscal 2025, compared with $4.0 million in 2024. Sight Sciences attributed the 2025 decrease to fewer SmartLids sold as it focused on securing market access through coverage. It added that two Medicare administrative contractors improved jurisdiction-level pricing in the fourth quarter of 2025. This background puts the segment’s 2026 revenue growth in the context of changes in sales, pricing and coverage, ahead of the new SmartLids supply price taking effect. It does not, however, turn the designated price into a national rate or guaranteed reimbursement for the product.
Sight Sciences raised its fiscal 2026 revenue guidance to a range of $92 million to $93 million, including about $12 million for the interventional dry eye segment. The previous segment guidance range was $9 million to $11 million, while its revenue was $1.6 million in 2025. The guidance increase coincides with the segment’s third-quarter revenue growth, but remains a forecast for fiscal 2026 and does not specify revenue the new code will generate after taking effect. According to CMS, payment changes in the 2027 calendar-year Physician Fee Schedule rule take effect on or after January 1, 2027. Actual payments will remain tied to payer decisions and policies, while Sight Sciences shares closed at $10.08 on November 6, 2026.