Ahead of the Bell: Lincare downgraded

Adam Feinstein cited two changes in Medicare policy in cutting his rating to "Equal weight" from "Overweight": a provision in a current bill that reduces the reimbursement rate for home oxygen therapy by 9.5 percent, and an older rule that ends payments for equipment that has been rented for three years.

Feinstein said the changes will cost Lincare about $200 million in pretax profit in 2009, and he cut his profit estimates as a result. He said Wall Street's expectations for the company will come down substantially.

In premarket trading, the stock lost $1.87, or 6.5 percent, to $27. Shares of the Clearwater, Fla., company finished at $28.87 Tuesday.

Calls to Lincare seeking comment were not immediately returned.