By Colin Kellaher
Shares of Inspire Medical Systems rose more than 5% on Monday after the medical-technology company said health insurer UnitedHealthcare will provide coverage for the company's therapy, effective Aug. 1.
Inspire said UnitedHealthcare, a unit of UnitedHealth Group, considers the company's hypoglossal nerve neurostimulation device to be medically necessary for the treatment of moderate to severe obstructive sleep apnea when specified criteria are met.
The Golden Valley, Minn., company said it now has 35 coverage policies representing about 125 million members that cover the Inspire therapy, compared with 3 million members a year ago.
Analysts at SVB Leerink said the UnitedHealthcare decision is "a big incremental positive" for Inspire, adding that they believe the company "is nearing a reimbursement 'tipping point' that should lead to accelerated adoption of its technology."
Shares of Inspire were recently up 6.9% to $68.28.
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