Inspire Medical drops as CMS correction triggers Oppenheimer downgrade

Shares of Inspire Medical (INSP) are under performing on Thursday after the Centers for Medicare & Medicaid Services issued a correction, stating “it incorrectly added” ICD-10 diagnosis code G47.33 — Obstructive Sleep Apnea — as a covered indication for CPT code 64568 under National Coverage Determination 160.18. Following the correction, Oppenheimer downgraded the stock to Perform from Outperform and removed the firm’s price target on the shares. Billing under CPT 64582 and modifier 52 “ends up being net negative” for Inspire, says the firm, which acknowledged that the timing of its upgrade given this “reimbursement blunder” had been “unfortunate.” Meanwhile, Evercore ISI said it believes the company’s FY26 guide should be intact and noted that the stock has roughly round tripped its move from the past 3 months. Evercore has an Outperform rating on Inspire with a price target of $125. Shares of Inspire Medical have dropped over 8% in afternoon trading to $88.35.