Orthofix Medical stock surges on Medicare reimbursement reversal

Investing.com -- Orthofix Medical Inc. shares jumped 15% Monday following news that Medicare reversed recent changes to reimbursement rates for non-invasive bone growth stimulators.

The Centers for Medicare & Medicaid Services on July 1, 2026, issued revised guidance withdrawing modifications to billing requirements and Medicare fee schedule treatment for non-invasive bone growth stimulators. The devices are billed under HCPCS codes E0747, E0748 and E0760.

The reversal came after CMS had modified billing requirements in May following the U.S. Food and Drug Administration’s reclassification of non-invasive bone growth stimulators from Class III to Class II devices on April 16, 2026. Those changes had affected devices furnished on or after May 18, 2026.

Under the new guidance, CMS directed that the devices furnished on or after May 18, 2026 be processed and paid consistent with the treatment in effect prior to the FDA reclassification. Orthofix said it expects average Medicare reimbursement for these codes will return to the rates in effect prior to May 18, 2026.

The company manufactures and distributes medical devices, including bone growth stimulators used in orthopedic treatments. Medicare reimbursement rates directly affect the company’s revenue from these products.

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