--- title: "NTAP, New Technology Add-On Payment | MedTech Terms" description: "Supplemental Medicare payment for inpatient use of qualifying new technologies. Plain-English Reimbursement definition for MedTech teams, with examples and rela" lang: en json-ld: | { "@context": "https://schema.org", "@graph": [ { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/ntap#term", "name": "New Technology Add-On Payment", "alternateName": "NTAP", "description": "NTAP provides up to 65% additional payment (75% for some categories) above the MS-DRG rate to hospitals using qualifying new technologies. 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However, having appropriate billing codes aids in data collection and tracking." } } ] } ] } --- [ MedTech Terms The authoritative reference ](/) Browse Learn [Latest](/latest) About 1. [Home](/) 2. / 3. [Terms](/terms) 4. / 5. [Reimbursement](/terms?cat=Reimbursement) 6. / 7. New Technology Add-On Payment [All terms](/terms) Reimbursement [Hospital Buyer & Reimbursement](/ecosystems/hospital-buyer)NTAP # New Technology Add-On Payment Supplemental Medicare payment for inpatient use of qualifying new technologies. Reviewed by [Christian Espinosa, Founder, Blue Goat Cyber](/authors/christian-espinosa) Last reviewed May 5, 2026 ## Definition NTAP provides up to 65% additional payment (75% for some categories) above the [MS-DRG](/terms/ms-drg) rate to hospitals using qualifying new technologies. Eligibility requires FDA marketing authorization, newness (typically <3 years), substantial clinical improvement, and inadequate MS-DRG payment. What the regulation says The Centers for Medicare & Medicaid Services (CMS) establishes the New Technology Add-On Payment (NTAP) program to facilitate beneficiary access to new medical technologies and services. The criteria for NTAP eligibility are outlined in the Medicare Prospective Payment System (PPS) for inpatient hospital services, specifically in the annual Inpatient PPS Final Rule, which includes requirements related to FDA marketing authorization, newness, substantial clinical improvement, and inadequate payment under existing Diagnosis-Related Group (DRG) rates. The program aims to ensure that hospitals are not financially disadvantaged when using qualifying new technologies before their costs are fully incorporated into DRG payment rates. ## What this means in practice NTAP bridges the gap while CMS gathers utilization data to update DRG weights. Time-limited (2–3 years). Critical for high-cost devices used inpatient. ## Examples - A medical device manufacturer secures NTAP for a novel cardiac assist device after demonstrating its FDA approval, significant improvement in heart failure patient outcomes, and that existing DRG payments do not cover its acquisition cost. - A hospital successfully applies for NTAP for a new surgical robot that allows for less invasive procedures with shorter recovery times, meeting the newness and substantial clinical improvement criteria. - A pharmaceutical company receives NTAP for a new antibiotic that treats highly resistant infections, as it has FDA approval and provides a unique treatment option where existing therapies are ineffective. Common pitfalls - • A common pitfall is failing to secure timely FDA marketing authorization, which is a prerequisite for NTAP consideration. - • Misinterpreting the "newness" criterion can lead to missed application windows, as technologies typically qualify for a limited period, often three years. - • Overlooking the requirement for "substantial clinical improvement" can result in rejection, as mere incremental advancements may not be sufficient. - • Failing to demonstrate that the existing Medicare Severity-Diagnosis Related Group (MS-DRG) payment is inadequate to cover the technology's costs is a frequent pitfall. - • Companies sometimes assume NTAP is a permanent solution rather than a transitional payment mechanism while CMS updates DRG weights. ## Frequently asked questions How does NTAP relate to FDA approval? FDA marketing authorization, such as 510(k) clearance or [PMA](/terms/pma) approval, is a mandatory prerequisite for a technology to be considered for NTAP by CMS. Is NTAP a permanent payment mechanism? What is 'substantial clinical improvement' in the context of NTAP? Can technologies without a specific CPT code qualify for NTAP? ## Cross-references ### Uses Concepts or artefacts this term builds on. - [ Breakthrough Device Designation(BDD) ](/terms/breakthrough-device) ### Often confused with Distinct concept frequently mistaken for this one. - [ Transitional Pass-Through Payment(TPT) NTAP is inpatient (IPPS); TPT is outpatient (OPPS). ](/terms/tpt) ## Related terms Grouped by theme ### Editor's picks · Hand-selected related concepts [ Reimbursement Inpatient Prospective Payment System(IPPS) Medicare's payment system for inpatient hospital stays. ](/terms/ipps)[ Reimbursement MS-DRG(MS-DRG) Medicare's inpatient hospital payment classification system. ](/terms/ms-drg)[ Reimbursement Transitional Pass-Through Payment(TPT) Supplemental outpatient payment for new device technologies. ](/terms/tpt) ### Reimbursement & Market Access · From this learning path [ Reimbursement Medicare Administrative Contractor(MAC) Private contractors that process Medicare Part A/B and DME claims and issue Local Coverage Determinations within their jurisdictions. Adjacent lesson ](/terms/mac?from=reimbursement-and-market-access)[ Reimbursement Transitional Coverage for Emerging Technologies(TCET) CMS pathway providing time-limited Medicare coverage for FDA-designated Breakthrough Devices. Adjacent lesson ](/terms/tcet?from=reimbursement-and-market-access)[ Reimbursement Budget Impact Model(BIM) Financial model that estimates the total cost consequences of adopting a new technology to a payer's budget over a defined horizon. ](/terms/budget-impact-model?from=reimbursement-and-market-access)[ Reimbursement CPT Codes(CPT) AMA-maintained codes that describe medical procedures and services. ](/terms/cpt-codes?from=reimbursement-and-market-access) ### More in Reimbursement · Same category [ Reimbursement Current Procedural Terminology Codes(CPT) AMA-maintained codes used to report medical procedures and services for billing. ](/terms/cpt) Cited by Where this term appears across MedTech Terms. Learning paths (1) - [Reimbursement & Market Access](/paths/reimbursement-and-market-access)Lesson 8 of 14 Ecosystems (1) - [Hospital Buyer & Reimbursement](/ecosystems/hospital-buyer) ## Primary references 3 sources Link health: 3 verified · last checked 2026-06-20 CMS· 1 AdvaMed· 1 AMA· 1 1. [1 CMS NTAP Verified CMS · cms.gov ](https://www.cms.gov/medicare/payment/prospective-payment-systems/acute-inpatient-pps/new-medical-services-and-new-technologies) 2. [2 AdvaMed - Payment & Coverage Verified AdvaMed · advamed.org ](https://www.advamed.org/our-work/) 3. [3 AMA CPT Resources Verified AMA · ama-assn.org ](https://www.ama-assn.org/practice-management/cpt) Inline markers like \[1\] jump to the matching reference above. Sponsor note ### Need cybersecurity expertise on a connected-device launch? Blue Goat Cyber helps MedTech teams ship connected products that hospital security teams will actually procure. [Book a 30-minute discovery session](https://go.bluegoatcyber.com/meetings/blue-goat-cyber/discovery-session) - No obligation - Expert-led from minute one - NDA available on request MedTech Terms is a community resource sponsored by [Blue Goat Cyber](https://bluegoatcyber.com). Definitions are independent of any vendor. On this term Category Reimbursement Acronym NTAP Sources 3 Updated 5/5/2026 [Compare with another term](/compare?a=ntap) Learn in 60 seconds Card Lesson Quiz Supplemental Medicare payment for inpatient use of qualifying new technologies. - · NTAP bridges the gap while CMS gathers utilization data to update DRG weights. - · Time-limited (2–3 years). - · Critical for high-cost devices used inpatient. Remember this Watch out: A common pitfall is failing to secure timely FDA marketing authorization, which is a prerequisite for NTAP consideration. Related terms - [MS-DRG(MS-DRG) ](/terms/ms-drg) - [Transitional Pass-Through Payment(TPT) ](/terms/tpt) - [Inpatient Prospective Payment System(IPPS) ](/terms/ipps) You may also need Auto-suggested from Reimbursement and shared keywords. - [Ambulatory Payment Classification(APC) ](/terms/apc) - [Budget Impact Model(BIM) ](/terms/budget-impact-model) - [Protecting Access to Medicare Act(PAMA) ](/terms/pama) - [Coverage with Evidence Development(CED) ](/terms/ced) - [Health Technology Assessment(HTA) ](/terms/hta) - [RWE for Reimbursement ](/terms/real-world-evidence-reimbursement) [All Reimbursement terms](/terms?cat=Reimbursement) MedTech Terms An authoritative, plain-language reference for the regulatory, quality, cybersecurity, and software terms that shape modern medical devices. 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