Dexcom and Abbott are watching closely as Medicare prepares to expand coverage for continuous glucose monitors, a move that could open access for millions of Americans with Type 2 diabetes who do not use insulin.
Current Coverage Limits
Today, Medicare only covers continuous glucose monitors for patients with Type 1 or Type 2 diabetes who take insulin or have documented episodes of problematic low blood sugar. The Centers for Medicare and Medicaid Services is expected to broaden this standard to include people with diabetes who do not take insulin. Both Dexcom and Abbott have signaled that such a change could meaningfully reshape the market for glucose monitoring.
Dexcom CEO Jake Leach told investors during the company’s late July earnings call that the company expects a response from CMS before the end of the year, with new coverage going into effect by mid-2027.
The Patient Population at Stake
Dexcom estimates approximately 25 million people in the United States have Type 2 diabetes and do not take insulin. Leach noted that roughly half of that group are of Medicare age. He called the CMS decision something with “the potential to completely reshape diabetes care in the U.S.”
The company backed its push for broader coverage with clinical data. Earlier this summer at the American Diabetes Association’s Scientific Sessions, Dexcom presented findings from a randomized, controlled trial. The 26-week study showed participants using a CGM achieved a larger hemoglobin A1C reduction compared to a control group and spent five more hours per day within a normal glucose range.
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Dexcom reported second-quarter sales of $1.31 billion, a 13% increase year over year.
Abbott’s Position
Abbott is preparing for the same shift. CEO Robert Ford told investors during Abbott’s July earnings call that the company expects the U.S. Type 2 expansion to make approximately 10 million additional Medicare recipients eligible for coverage, while also driving broader commercial insurance uptake.
“This could be a multibillion-dollar opportunity, and it could happen in the fall,” Ford said. “I just can’t forecast … when exactly it’s going to happen.”
Ford said Abbott is actively readying its sales force, distribution networks, and related resources ahead of the anticipated decision. Abbott’s diabetes care segment reported quarterly sales of $2.19 billion, up 10.5% compared to the same period the prior year.
Both companies enter the waiting period with strong financials in their diabetes divisions. The decision, expected before year-end, is widely seen as consequential for the continuous glucose monitor market and for diabetes management broadly in the United States.
