Medicare reimbursement rates for bone growth stimulators will be restored to their original levels after the Centers for Medicare & Medicaid Services reversed guidance around the products, Orthofix Medical said.

CMS had in May issued guidance lowering reimbursement rates for the products, following a Food and Drug Administration order reclassifying them to Class II devices from Class III.

Orthofix, which makes bone growth medical devices, said at the time that the decision would lead to a 10% decrease in average reimbursement rates and that it did not expect to generate positive cash flow for the year.

But on Wednesday, CMS withdrew those changes and restored the original rates, Orthofix said in a Thursday filing with the Securities and Exchange Commission. It did not issue any updated guidance.

Shares of Orthofix were up 10% to $10.96 in after-hours trading on Thursday. The stock closed up 6.3% at $9.94, down 34% this year.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

July 02, 2026 16:29 ET (20:29 GMT)

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