What's Happening?
Executives from Tandem Diabetes Care and Insulet are closely monitoring proposed changes by the Centers for Medicare and Medicaid Services (CMS) regarding payments for diabetes technology. The proposal includes insulin pumps and continuous glucose monitors in a competitive bidding program and shifts payments to a monthly rental schedule. Tandem CFO Leigh Vosseller stated that the changes are not expected to materially impact the company, while Insulet anticipates minimal effects due to its existing pay-as-you-go model.
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Why It's Important?
The proposed CMS changes could significantly impact the diabetes technology market, affecting how companies like Tandem and Insulet operate. The shift to a rental payment model may influence patient access to diabetes management tools, potentially driving more individuals towards pump therapy. The broader diabetes care market is poised for growth, driven by increasing diabetes prevalence and advancements in digital health integration, making these regulatory changes critical for industry stakeholders.
What's Next?
The CMS proposal has faced criticism for potential disruptions to Medicare beneficiaries' care. Dexcom, another key player, is concerned about ensuring uninterrupted care. The competitive bidding process is expected to start no earlier than 2027. Companies are preparing for these changes by adjusting sales strategies and exploring new market opportunities, particularly outside the U.S., to mitigate potential impacts.
