TriWest, the regional administrator for TRICARE, updated its medical policy on November 12, 2025 to include coverage for NeuroStar transcranial magnetic stimulation (TMS) for adolescents aged 15 and older, effective immediately. The policy applies to 27 states—Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wisconsin, and Wyoming—making it the first time TRICARE will cover TMS for this age group.
The expansion follows NeuroStar’s FDA clearance for adolescent use in 2024 and aligns with the growing evidence base for TMS as a treatment for major depressive disorder in youth. By adding TRICARE as a payer, Neuronetics gains a significant new channel for its adolescent patient segment, which is estimated to include 4.3 million U.S. adolescents aged 15‑21 affected by major depression. The policy requires pre‑authorization and applies to patients with a diagnosis of major depressive disorder who meet treatment‑resistance criteria, ensuring that coverage is targeted to those most likely to benefit.
Management emphasized the importance of the decision. President and CEO Keith J. Sullivan said the coverage “provides a critical pathway for military families to access an evidence‑based therapy that can change lives.” Chief Medical Officer Geoffrey Grammer added that the policy “recognizes the unique stressors faced by children of service members and expands access to a proven treatment that can reduce the burden of depression on families.”
The coverage expansion is expected to increase utilization of the NeuroStar system among military families, a key demographic for the company. With TRICARE’s broad reach, the company anticipates higher treatment volumes, which could translate into increased revenue from the adolescent segment and strengthen its competitive position in the growing TMS market. The policy also signals broader payer acceptance of TMS for adolescents, potentially encouraging additional insurers to adopt similar coverage.
The announcement does not include immediate financial metrics, but it represents a strategic win that could improve Neuronetics’ long‑term revenue trajectory. The company’s recent Q3 2025 earnings showed a $37.3 million revenue increase of 11% on an adjusted pro‑forma basis versus Q3 2024, underscoring its growth momentum. The TRICARE expansion adds a new payer source that could further accelerate revenue growth in the adolescent market.
The policy change is a regulatory action that can drive higher utilization of the NeuroStar system among military families, a significant portion of the company’s target market. By expanding access to a key payer, Neuronetics stands to increase revenue from its adolescent patient segment and strengthen its competitive position in the growing TMS market.
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