California Enacts Landmark Scalp Cooling Coverage Legislation

Paxman announces that the state of California has enacted Assembly Bill 1682, establishing insurance coverage requirements for FDA-cleared scalp cooling for cancer patients undergoing chemotherapy and creating an important new model for states considering similar legislation. The bill was signed by Governor Gavin Newsom on27th September and takes effect on January 1, 2027.

Importantly, AB 1682 establishes a clear statutory standard for scalp cooling by limiting coverage to FDA-cleared devices and systems, reinforcing an evidence-based approach to side effect management in cancer care.

As the largest state to enact scalp cooling coverage legislation to date, California sets a new benchmark for policymakers. By expanding access through large-group commercial insurance and Medicaid, while aligning coverage with FDA-cleared systems and the existing CPT reimbursement pathway, AB 1682 helps reduce financial barriers for patients.

For Paxman, expanded insurance coverage directly supports the continued rollout of its Insurance-Based Billing Model in the U.S. market. Coverage mandates such as AB 1682 can reduce reimbursement uncertainty, support broader provider adoption and increase utilization of existing systems, continuing to transition the U.S. market from patient self-pay toward a scalable, insurance-based commercial model. Paxman is actively engaging with legislators and other stakeholders in key U.S. markets to advance similar coverage initiatives nationally.

"Meaningful patient access means more than making treatment available; it means ensuring that people can benefit from it regardless of their financial circumstances," said Richard Paxman, Chief Executive Officer of Paxman. "Over the past several years, the company has invested across the full access pathway, from building clinical evidence and securing FDA clearance to advancing coding, reimbursement and provider implementation. Together, these efforts are helping to create a more equitable and sustainable foundation for patient access to scalp cooling, giving providers and policymakers the practical tools and pathways to reduce financial barriers and expand coverage to more patients."

Passage of this legislation follows an extensive independent analysis conducted by the California Health Benefits Review Program (CHBRP), which found strong evidence that FDA-cleared automated scalp cooling systems effectively reduce chemotherapy-induced hair loss and do not increase the risk of scalp metastasis.

California joins New York, Louisiana, Maryland, West Virginia and Connecticut in enacting scalp cooling coverage legislation, with additional states considering similar measures. The final legislation established through AB 1682 provides policymakers with a practical reference point for developing evidence-based scalp cooling coverage in other states.

Scalp cooling helps reduce chemotherapy-induced hair loss, one of the most visible and distressing side effects of cancer treatment. The National Comprehensive Cancer Network® (NCCN®) recommends scalp cooling as a Category 2A treatment option for patients receiving chemotherapy. Paxman and DigniCap Scalp Cooling Systems are available in more than 900 cancer centers across the United States.

Paxman remains committed to working with policymakers, clinicians, patient advocates and other healthcare stakeholders to advance evidence-based coverage policies, support sustainable reimbursement pathways, and expand patient access to scalp cooling throughout the United States.