New York Medicaid to cover TMS therapy for depression starting October

NEW YORK - Over 5 million New York Medicaid members will gain access to Transcranial Magnetic Stimulation (TMS) therapy for major depressive disorder (MDD) starting this fall, according to a press release from Neuronetics, Inc. (NASDAQ:STIM). The company, currently valued at $183 million, has seen remarkable growth with its stock surging 191% over the past year, according to InvestingPro data.

The coverage will begin October 1 for approximately 1 million fee-for-service Medicaid members and November 1 for more than 4.4 million individuals enrolled in Medicaid Managed Care Plans.

TMS is a non-drug, non-invasive treatment that uses targeted magnetic pulses to stimulate neurons in brain regions associated with mood regulation. The therapy is typically considered for patients who have not responded adequately to traditional antidepressant medications.

"This decision by New York State Medicaid reflects the growing recognition of TMS as an evidence-based, life-changing treatment for patients with depression," said Keith J. Sullivan, President and CEO of Neuronetics, Inc.

Neuronetics manufactures NeuroStar Advanced Therapy, a TMS system that has received FDA clearance for treating adults with MDD, as an adjunct for adults with obsessive-compulsive disorder, for anxiety symptoms in adult patients with MDD, and as a first-line adjunct treatment for MDD in adolescents aged 15-21.

Major depressive disorder affects approximately 21 million adults in the United States, with an estimated 6.4 million people either unable to tolerate antidepressant medication or receiving inadequate relief from it.

The New York Medicaid policy change represents a significant expansion of access to TMS therapy in the state’s healthcare system.

In other recent news, Neuronetics reported its financial results for the second quarter of 2025, highlighting a significant earnings per share (EPS) miss. The company posted an EPS of -$0.15, which was notably below the forecasted -$0.08. Despite this, Neuronetics exceeded revenue expectations, reporting $38.1 million against a forecast of $36.59 million. This revenue beat was primarily driven by Clinic/Greenbrook revenue. Following the earnings report, Canaccord Genuity adjusted its price target for Neuronetics from $8.00 to $7.00, citing margin concerns, though they maintained a Buy rating on the stock. The revenue figures surpassed both Canaccord’s estimate of $37.2 million and the consensus forecast of $36.8 million. These developments have drawn attention to Neuronetics’ financial performance and future prospects.

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