What Happened?
Shares of medical technology company Inspire Medical Systems (NYSE: INSP) jumped 19.7% in the afternoon session after reports revealed that the Centers for Medicare & Medicaid Services (CMS) is preparing to assign specific C-codes for the Inspire V device in the April 2026 Integrated Outpatient Code Editor (IOCE) update.
This news, highlighted by analysts at KeyBanc, provides a critical resolution to recent reimbursement uncertainties that had previously weighed on the company's stock. By introducing dedicated C-codes, CMS simplifies the billing process for hospitals and surgical centers, ensuring more predictable and potentially higher payments for the company's neurostimulation therapy used to treat obstructive sleep apnea. The market's reaction reflects a major recovery in investor confidence following a period of volatility.
Earlier in 2026, Inspire Medical Systems had lowered its revenue guidance due to "coding headwinds." The move to add specific C-codes for the Inspire V system is seen as a "regulatory win" that removes these hurdles, clearing a path for accelerated adoption.
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What Is The Market Telling Us
Inspire Medical Systems’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for Inspire Medical Systems and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 3.1% on the news that a softer-than-expected inflation report fueled hopes for interest rate cuts by the Federal Reserve. The January Consumer Price Index (CPI), a key measure of inflation, rose by 0.2%, which was less than economists had forecast, with the annual rate cooling to 2.4%. This encouraging data increased market expectations for the Fed to begin cutting interest rates as early as June. The news prompted a rally in Treasuries as their yields fell. While the market's reaction was initially described as a "bumpy ride" due to concerns in other sectors, the favorable inflation data ultimately helped calm Wall Street. Lower inflation is a key prerequisite for the central bank to ease its monetary policy, which is generally supportive of stock valuations.
Inspire Medical Systems is down 24.9% since the beginning of the year, and at $69.31 per share, it is trading 64.8% below its 52-week high of $196.61 from February 2025. Investors who bought $1,000 worth of Inspire Medical Systems’s shares 5 years ago would now be looking at an investment worth $297.71.
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