Inspire Medical Downgraded as Medicare Reverses Reimbursement for Sleep Apnea Implant
Wolfe Research downgraded Inspire Medical's rating to Market Perform from Outperform after CMS reversed its carve-out reimbursement policy for hypoglossal nerve stimulation implants. The reversal withdraws separate Medicare payments for its sleep apnea device, threatening 2026 revenue growth forecasts by several percentage points.
1. Wolfe Research Downgrade
Wolfe Research downgraded Inspire Medical to Market Perform from Outperform, highlighting increased uncertainty around Medicare coverage. The firm noted that without separate reimbursement restored, revenue projections for its hypoglossal nerve stimulation business face significant headwinds.
2. Medicare Payment Reversal Impact
CMS reversed its 2025 carve-out payment policy for hypoglossal nerve stimulation implants used in sleep apnea treatment, bundling device costs into broader hospital payments. This change ends separate Medicare reimbursement, potentially reducing device revenue forecasts by several percentage points in 2026.