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Stock impact report

MiMedx and Organogenesis stocks tumble after CMS proposal to slash spending [Yahoo! Finance]

MiMedx Group, Inc (MDXG) 
Last mimedx group, inc earnings: 4/28 07:00 am Check Earnings Report
Company Research Source: Yahoo! Finance
Medicare & Medicaid Services (CMS) proposed a rule that would drastically cut Medicare spending on skin substitutes. The proposal, part of the CY 2026 Medicare Physician Fee Schedule, aims to reclassify skin substitutes as "incident-to supplies" rather than biologicals for Medicare payment purposes. This change is expected to reduce spending on these products by nearly 90%, according to CMS. Medicare spending on skin substitutes has skyrocketed from $256 million in 2019 to over $10 billion in 2024, which CMS attributes to "abusive pricing practices" and use of products with limited evidence of clinical value. Current payment rates for skin substitutes can reach as high as $2,000 per square inch. The proposed rule would significantly impact companies like MiMedx and Organogenesis, which specialize in skin substitutes and wound care products. Both companies derive substantial revenue from Medicare reimbursements for these treatments. CMS Administrator Dr. Mehmet Oz stated, "We a Show less Read more
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