Evercore ISI says Inspire Medical guide should be intact despite CMS correction

Evercore ISI analyst Daniel Markowitz notes that the Centers for Medicare & Medicaid Services has issued an update effectively stating that hospitals and ASCs should not qualify for a reimbursement uplift for Inspire Medical (INSP) V procedures, which has been been a great source of debate over the past month. CMS clarified that the ICD-10 diagnosis code for Obstructive Sleep Apnea was incorrectly added as a covered indication for CPT code 64568 under NCD 160.18 and is now being removed. The firm believes the company’s FY26 guide should be intact and notes that the stock has roughly round tripped its move from the past 3 months. Evercore has an Outperform rating on the shares with a price target of $125.