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Why Inspire Medical Systems (INSP) Is Down 15.6% After Medicare Fee Hike And New Lawsuits

Simply Wall St · 1d ago
  • In recent days, Inspire Medical Systems has faced renewed attention as regulators finalized a substantial future increase in Medicare facility fees for its sleep apnea procedure, while multiple law firms advanced securities class actions tied to the rollout of its Inspire V device.
  • This combination of richer long-term reimbursement and heightened legal and execution scrutiny creates a complex risk–reward backdrop for investors assessing Inspire’s path forward.
  • Now we’ll explore how the planned Medicare facility fee increase for Inspire’s procedure could reshape the company’s investment narrative.

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Inspire Medical Systems Investment Narrative Recap

To own Inspire Medical Systems, you need to believe its implantable sleep apnea therapy remains clinically compelling and can grow despite execution hiccups and competition from GLP-1 drugs. The CMS decision to lift Medicare facility fees from 2026 looks supportive for the key near term catalyst of procedure volume recovery, while the biggest near term risk remains the messy Inspire V rollout and the mounting securities lawsuits that keep attention on management’s execution and disclosures.

Against this backdrop, the CMS rule that could raise Medicare facility fees for Inspire’s procedure by about 50% in 2026 stands out as especially relevant. It directly addresses prior reimbursement uncertainty and could help offset pressure from slower Inspire V adoption, although it does not resolve legal claims around billing software, inventory handling or the risk that GLP-1 driven weight loss alters the long term pool of eligible patients.

Yet investors also need to be aware that, alongside richer future Medicare economics, multiple securities class actions now allege that Inspire’s Inspire V launch...

Read the full narrative on Inspire Medical Systems (it's free!)

Inspire Medical Systems' narrative projects $1.3 billion revenue and $103.6 million earnings by 2028.

Uncover how Inspire Medical Systems' forecasts yield a $128.19 fair value, a 8% upside to its current price.

Exploring Other Perspectives

INSP 1-Year Stock Price Chart
INSP 1-Year Stock Price Chart

Nine Simply Wall St Community fair value estimates for Inspire span roughly US$41 to US$271, showing how far apart individual views can be. As you weigh those opinions, the key execution risk around the Inspire V rollout and related legal scrutiny could influence how confidently the business converts richer future Medicare reimbursement into sustained growth.

Explore 9 other fair value estimates on Inspire Medical Systems - why the stock might be worth over 2x more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.