Stifel weighs in on Inspire Medical Systems (INSP) weakness

Stifel analyst Jonathan Block weighed in on Inspire Medical Systems (NYSE: INSP) with shares under heavy pressure today which appears related to a reimbursement / CPT code reversal. Shares are down 20% mid-day.

The analsyt commented, "While details are still (somewhat) scant, Inspire's reimbursement / CPT code merry-go-round took a turn for the worse this morning, with two MACs (CGS and Noridian) pulling CPT code 64568 for HGNS, and seemingly redirecting Inspire surgery back to the former 64582. The obvious concern is that the other MACs will follow. As a reminder, the 2026 Final HOPPS/ASC payment rule released in November saw a near +50% and +60% y/y increase to Inspire V's CPT code 64568 facility fee at the hospital and ASC, respectively. However, this morning, Noridian and CGS removed CPT code 64568 from their respective HGNS reimbursement policies (see here and here). The policies appear to revert back to CPT code 64582 (dedicated HGNS code currently used for Inspire IV), which saw a much more tempered +LSD% y/y 2026 reimbursement increase. There are still many questions as CMS issued a clear directive in their March/April transmittal to the MACs for OSA diagnosis code G47.33 to (again) be billed with 64568, so the ultimate outcome remains unknown. However, if the other five remaining MACs follow suit, Inspire's meaningful pricing tailwind to 2026 and 2027 revenue growth may be off the table. If that were to occur, it would obviously be disappointing, but we mentioned other variables in our recent upgrade that also played a role in our Buy rating (which remains unchanged)."

The analsyt maintained a Buy rating and $110.00 price target on INSP.

For an analyst ratings summary and ratings history on Inspire Medical Systems click here. For more ratings news on Inspire Medical Systems click here.

Shares of Inspire Medical Systems closed at $118.27 yesterday.

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