Shares of Inspire Medical Systems (NYSE:INSP) climbed about 40% on Thursday afternoon after an industry analyst highlighted a notice from the Centers for Medicare & Medicaid Services (CMS) that appears to recognize the need for device-specific reimbursement codes for hypoglossal nerve stimulation procedures.
CMS acknowledged recent uncertainty surrounding reimbursement for hypoglossal nerve stimulation and announced the creation of six new HCPCS codes. The agency said the codes will be included in the Integrated Outpatient Code Editor update scheduled for April 2026 and will carry an effective date of Jan. 1, 2026.
Keybanc analyst Brett Fishbin drew attention to the specific codes announced by CMS, noting three codes describing procedures using Inspire V (C8007-C8009) and three describing Nyxoah procedures (C8011-C8013). Fishbin indicated that these additions could help accelerate movement toward clearer, product-specific and permanent payment arrangements instead of continued use of code 64582 accompanied by a -52 modifier.
The CMS announcement was published in its MLN Connects Newsletter on Thursday. The newsletter said the new HCPCS codes will be part of the Integrated Outpatient Code Editor update in April 2026, with the codes effective from the start of that calendar year.
Inspire management has previously stated a plan to seek a new Category 1 code specific to Inspire V. During the company’s fourth quarter 2025 earnings call, corporate leaders said that, if successful, a Category 1 code could come into effect in 2028.
Market reaction and potential implications
The stock movement followed the CMS communication and Keybanc’s note calling out the new, product-specific codes. Market participants reacted strongly to the prospect that the coding changes could reduce ambiguity around reimbursement for these devices and possibly set a clearer path for payment differences between products.
While the CMS change targets outpatient coding for hypoglossal nerve stimulation, the implications are most directly felt across the medical device sector and within the reimbursement and payor landscape. Health systems, device manufacturers, and investors tracking reimbursement policy are likely to watch subsequent rulemaking and payer adoption closely.
What remains uncertain
The CMS action introduces product-specific codes to the official coding update process, but it does not itself guarantee permanent payment levels or final reimbursement policy. Separately, Inspire’s pursuit of a Category 1 code remains a distinct process with its own timeline and uncertainty; the company has estimated a successful application could result in a Category 1 code taking effect in 2028.
Given these open items, stakeholders including providers, payors, and manufacturers will be monitoring how the new HCPCS codes are implemented in practice and whether they translate into stable, product-specific payment streams.