** Shares of medical device maker Neuropace NPCE.O rise 2.1% to $14.65 premarket

** Co says Medicare will increase payments for its RNS System, a device used to treat drug-resistant epilepsy

** Under new rules for 2026, the Centers for Medicare & Medicaid Services or CMS, will raise payments to doctors who implant or replace the RNS System by about 43% for initial procedures and 45% for replacements - NPCE

** CMS also moves RNS replacement to highest-paying outpatient category, lifting hospital reimbursement by 47% to $31,526 - NPCE

** Co expects the higher payments to support growth in both physician use and hospital access for Medicare patients

** Up to last close, stock up ~28% YTD

(Reporting by Sahil Pandey in Bengaluru)

((Sahil.Pandey@thomsonreuters.com))