New Medicare Rules Cut Reimbursements

The U. S. Centers for Medicare and Medicaid Services released proposed rules for 2007 and 2008 which would cut reimbursements for certain heart surgeries sending shares of medical device makers tumbling. Medtronic Inc. (MDT) stock dropped $1.11 to close at $49.93 while shares of Boston Scientific Corp. (BSX) lost 61 cents to close at $21.55. The stock price of St. Jude Medical Inc. (STJ) fell 95 cents to close at $35.90.