Skin Substitute Makers Sue Medicare for Cutting Reimbursement

A coalition of skin substitute manufacturers is suing the Trump administration over allegations that the Medicare program unlawfully slashed reimbursement for their products.

The complaint filed Thursday in the US District Court for the Northern District of Texas claims a 2025 Medicare payment rule redefined skin substitutes—which are typically made from human or animal tissue—as nonbiological products. This reclassification effectively lowered reimbursement for these products by 90%, a move the complaint says would have a “destructive effect” on manufacturers.

Skin substitutes are used to mitigate severe skin injuries such as burns, diabetic foot ulcers, or surgical excisions.

The Centers for ...