Dignitana announces that New York Governor Kathy Hochul has signed a bill to provide insurance coverage for scalp cooling systems used to preserve hair during chemotherapy treatment for cancer. The act will take effect January 1, 2026.

With this legislation (A38-A/S2063-A), New York becomes the first state in the U.S. to require private health insurers to provide coverage for these devices. The bill, sponsored by Linda B. Rosenthal in the State Assembly and Toby Stavitsky in the State Senate, was passed unanimously in both houses of the New York Legislature in June of this year.

Dignitana's DigniCap Scalp Cooling System is already in use by over 20 cancer centers in New York State. Insurance coverage mandated by this new bill will make scalp cooling with DigniCap financially accessible to more patients and allow healthcare providers to receive fair reimbursement to administer the therapy.

Dignitana CEO Fredrik Jonsson said, "This bill is a victory for patients and providers and is an important development for the Company.  As the first bill of its kind coming from a state known for influential legislation, this bill sends a strong message to payers regarding the medical necessity of scalp cooling. We anticipate this will strengthen insurance coverage for scalp cooling in other states as well and will help us to further expand availability and utilization of DigniCap."

Dignitana recently announced another milestone in reimbursement, when the American Medical Association (AMA) upgraded the current CPT^® codes for scalp cooling from the temporary Category III status to CPT^® Category I. The new codes will also take effect January 2026 and include a relative value unit to provide payment guidance to insurers.

The FDA-cleared DigniCap Delta device uses industry-leading thermoelectric cooling to minimize hair loss that is a side effect of chemotherapy prescribed to treat solid tumors such as those from breast cancer, ovarian cancer and prostate cancer. Breast cancer is one of the most prevalent cancers in in New York, with over 16,700 women and men diagnosed with breast cancer each year.

The New York bill, which was signed by Governor Hochul on December 13, 2024, reads in part: "Every policy delivered or issued for delivery in this state that provides medical, major medical, or similar comprehensive-type coverage and provides coverage cancer chemotherapy treatment shall provide coverage for scalp cooling systems used in connection with cancer chemotherapy treatment. Coverage provided under this paragraph may be subject to annual deductibles and coinsurance, including copayments, as may be deemed appropriate by the superintendent and as are consistent with those established for other benefits within a given policy."