Two of the biggest names in diabetes technology — Dexcom and Abbott — are closely monitoring an anticipated Medicare CGM coverage expansion that could open access to continuous glucose monitors for millions of Americans with Type 2 diabetes who do not use insulin.
A Major Policy Shift on the Horizon
Currently, Medicare coverage for continuous glucose monitors is restricted to individuals with Type 1 or Type 2 diabetes who either take insulin or have a documented history of problematic low blood sugar episodes. The Centers for Medicare and Medicaid Services is expected to broaden this coverage to include people with diabetes who do not take insulin — a move that both companies have indicated could meaningfully reshape the landscape for glucose monitoring in the United States.
Dexcom CEO Jake Leach addressed the anticipated policy update during the company’s late July earnings call, stating that the company expects to receive a response from the CMS before the end of the year, with coverage anticipated to go into effect by mid-2027.
Scale of the Opportunity for Dexcom
Dexcom estimates that approximately 25 million people in the United States have Type 2 diabetes and do not take insulin. Of that group, Leach noted that roughly half are of Medicare age. He described the CMS decision as having “the potential to completely reshape diabetes care in the U.S.”
To support the coverage expansion, Dexcom presented findings from a randomized, controlled trial earlier this summer at the American Diabetes Association’s Scientific Sessions. The 26-week study demonstrated that 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.
Dexcom reported second-quarter sales of $1.31 billion, reflecting a 13% increase year over year.
Abbott’s Preparation and Outlook
Competitor Abbott is equally positioned to benefit from the planned Medicare CGM coverage expansion. During Abbott’s July earnings call, CEO Robert Ford told investors 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.
Ford confirmed that Abbott is actively preparing its sales force, distribution networks, and related resources ahead of the anticipated decision. “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.”
Abbott’s diabetes care segment reported sales of $2.19 billion for the quarter, a 10.5% increase compared to the same period the prior year.
With both Dexcom and Abbott reporting strong quarterly results in their respective diabetes care segments and preparing for what could be a significantly expanded patient base, the industry is keeping a close watch on CMS timelines. The Medicare CGM coverage decision, expected before year-end, is widely seen as a consequential development for the continuous glucose monitors market and for the broader diabetes management sector in the United States.
