Why TNDM fell so heavily today?

The stock price of TNDM (Tandem Diabetes Care) experienced a significant drop today, July 1, 2025, which can be attributed to two main factors: 1. **Proposed Medicare Payment Cuts**: The most significant factor contributing to the decline in TNDM's stock price is the proposed Medicare payment cuts. The Centers for Medicare & Medicaid Services (CMS) unveiled a proposal to reduce payments to home health agencies for the 2026 calendar year, which could impact providers of diabetes care products. This news sent shockwaves through the medical device industry, including companies like TNDM, DexCom, and Insulet, which are all involved in the diabetes care market. The market reacted negatively, as these payment cuts could lead to reduced revenues for these companies. 2. **Competitive Bidding Program Changes**: Another factor that may have influenced the stock price movement is the proposed changes to the competitive bidding program by CMS. This could affect the reimbursement rates for continuous glucose monitors and insulin pumps, which are the primary products of TNDM. The uncertainty surrounding the future reimbursement rates has created volatility in the market, leading to a sell-off in stocks related to diabetes care. In summary, the combination of proposed Medicare payment cuts and competitive bidding program changes has created a challenging environment for TNDM and other medical device companies, leading to a significant drop in its stock price today. |code|Ticker|Name|Date|Percentage Change|market_code| |---|---|---|---|---|---| |TNDM|TNDM.O|Tandem Diabetes Care|20250701|-7.993562231759667|185| |code|Ticker|Name|Date|Pre-Market Percentage Change|market_code| |---|---|---|---|---|---| |TNDM|TNDM.O|Tandem Diabetes Care|20250701|-6.920600858369094|185| |code|Ticker|Name|Date|Post-Market Percentage Change|market_code| |---|---|---|---|---|---| |TNDM|TNDM.O|Tandem Diabetes Care|20250701|8.163265306122462|185|