Market reaction
Orthofix Medical Inc. (NASDAQ:OFIX) saw its stock rise 12% on Monday after the Centers for Medicare & Medicaid Services (CMS) issued revised guidance withdrawing recent modifications to billing requirements and Medicare fee schedule treatment for non-invasive bone growth stimulators.
Policy reversal details
On July 1, 2026, CMS announced that it was rescinding changes affecting the billing and Medicare payment treatment for non-invasive bone growth stimulators. The agency said the devices, billed under HCPCS codes E0747, E0748 and E0760, should be handled consistent with the way they were processed before the U.S. Food and Drug Administration reclassified these devices.
Those fee schedule and billing changes had been implemented after the FDA reclassified non-invasive bone growth stimulators from Class III to Class II devices on April 16, 2026. CMS had previously modified billing requirements in May, impacting devices furnished on or after May 18, 2026.
Under the new guidance, CMS directed that devices furnished on or after May 18, 2026 be processed and paid as they were prior to the FDA reclassification. Orthofix said it expects that average Medicare reimbursement for the three HCPCS codes will return to the rates in effect before May 18, 2026.
Business significance
Orthofix manufactures and distributes medical devices, including bone growth stimulators used in orthopedic care. Because Medicare reimbursement rates directly influence revenue from these products, the CMS decision has an immediate bearing on the company’s payment mix for patients covered by Medicare.
Context limitations
The guidance issued by CMS specifically references billing and fee schedule treatment for non-invasive bone growth stimulators billed under HCPCS codes E0747, E0748 and E0760, and the agency’s direction applies to devices furnished on or after May 18, 2026. The company’s expectation about reimbursement returning to prior rates is stated by Orthofix.
Implications for markets
The reversal is directly relevant to stakeholders in medical devices and healthcare reimbursement, and it produced a notable move in Orthofix’s share price when the guidance was announced.