Blue Cross Blue Shield of Texas Issues Revised Policy Covering ON-Q; Major Insurer Recognizes that ON-Q May Be Considered Medically Necessary Following Surgery.

LAKE FOREST, Calif. -- I-Flow Corporation (NASDAQ: IFLO) today announced that Blue Cross Blue Shield of Texas officially issued a revised policy covering the use of ON-Q for post-surgical pain relief, stating that "the infusion of anesthesia using an elastomeric infusion pump may be considered medically necessary as a technique to relieve post-operative pain following surgical procedures that would typically require oral or parenteral administration of narcotics for pain control." ON-Q(R) PainBuster(R), ON-Q Soaker(TM) Catheter, and ON-Q Post-Op Pain Relief are all trade names that are specifically listed under the policy. Both clinically and in everyday practice, ON-Q redefines recovery and gets patients back to normal faster following surgery.

This Medical Policy change also applies to ON-Q under Blue Cross Blue Shield of Illinois and Blue Cross Blue Shield of New Mexico policies and is primarily applicable in ambulatory surgery centers, but may have limited application for certain cases in hospitals. Intra-articular infusion following orthopedic procedures are covered, as are surgical wound infusion and/or peripheral nerve block after any of the following:

--urologic procedures, such as prostatectomy 

--obstetric/gynecologic procedures, such as cesarean section 

--gastrointestinal procedures, such as hemorrhoidectomy 

--thoracic procedures, such as thoracotomy 

--cardiovascular procedures, such as sternotomy

--general surgical procedures, such as hernia repair 

--plastic surgery procedures

"It is extremely encouraging that Blue Cross Blue Shield of Texas has revised its medical policy regarding the infusion of anesthesia using an elastomeric pump to recognize ON-Q," said Donald M. Earhart, President and CEO of I-Flow Corporation. "This decision reflects on the ever-growing body of ON-Q clinical studies across a broad range of surgeries that demonstrate consistent results. Recognition by this major private insurer is another critical step toward our company's mission of making ON-Q accessible to the millions of people undergoing surgery in this country each year."

Blue Cross Blue Shield acknowledges that the number and complexity of surgical procedures performed on an outpatient basis have been increasing as hospital admissions have been decreasing in recent years. Post-operative pain, nausea and vomiting are the most frequent complications associated with unplanned admission following ambulatory surgery and delays in hospital discharge. In addition, patients who have had orthopedic procedures frequently experience moderate to severe pain at home that cannot be controlled by prescription oral opiods (narcotics), today's standard of care.

Blue Cross Blue Shield's Medical Policies are based on research that provides evidence of scientific merit for a particular medical technology. Technology determinations used in Medical Policies are based in part on criteria developed by the Blue Cross Blue Shield Association's Technology Evaluation Center (TEC) and on data from the peer-reviewed scientific literature, from criteria developed by specialty societies and from guidelines adopted by other health care organizations. Medical Policies are used as guidelines for coverage determinations in health care benefit programs, unless otherwise indicated.

About ON-Q PainBuster

ON-Q is now labeled to significantly reduce pain and narcotics intake after surgery. ON-Q PainBuster is a simple yet elegant device that consists of a small balloon pump that holds a local anesthetic (a pain-numbing medicine) and delivers it through a tiny, specially-designed tube (catheter) directly into the surgical site. The proprietary ON-Q Soaker(TM) Catheter is designed to provide more even distribution of local anesthetic over a wider area, as compared to other catheters, because of its patented wicking capabilities.

ON-Q PainBuster delivers narcotic-free pain relief for many surgeries, including: cesarean section, hysterectomy, knee replacement, mastectomy, cardio-vascular/thoracic, foot and ankle and many cosmetic procedures. ON-Q PainBuster helps patients avoid the side effects of narcotics so they can get back to their normal lives faster. Currently, more than 40 studies on the use of ON-Q have been completed and published and more are underway to demonstrate the benefits of ON-Q in additional areas such as pediatrics and wound healing.

For more information about ON-Q, visit AskYourSurgeon.com or call 800-448-3569.

About I-Flow Corporation

I-Flow Corporation (iflo.com) designs, develops and markets technically advanced, low-cost drug delivery systems and services that are redefining the standard of care by providing life-enhancing, cost-effective solutions for pain relief.

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