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Investing.com -- Inspire Medical Systems (NYSE:INSP) stock soared 18% after the U.S. government released final 2026 reimbursement rules that dramatically increase payment rates for the company’s obstructive sleep apnea treatment devices.
The Centers for Medicare & Medicaid Services’ final Hospital Outpatient Prospective Payment System (HOPPS) and Ambulatory Surgical Center (ASC) payment rule includes a significant boost for the procedure code 64568, which Inspire Medical now uses for its Inspire V device. The reimbursement rate will jump approximately 50% at both hospitals and ambulatory surgical centers.
At hospitals, the facility fee for the procedure will increase from about $30,500 in 2025 to approximately $45,000 in 2026, far exceeding the initially proposed 4% increase. Similarly, ASC reimbursement will rise from $26,800 to about $42,400, compared to the previously proposed 5% increase.
The news prompted upgrades from both Stifel and Nephron Research. The timing of Inspire Medical’s switch to the 64568 procedure code positions the company to benefit significantly from these higher reimbursement rates.
While implementing price increases across Inspire Medical’s approximately 1,500 centers may take time and require recontracting, analysts expect the higher rates to positively impact revenue growth in 2026 and 2027. The company’s last price increase occurred in May 2022.
Other factors potentially benefiting Inspire include patient warehousing issues resolving as centers become trained on the Inspire V system, increased advertising spend, and limited competitive pressure from companies like LivaNova and Nyxoah.
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