Dexcom, one of the world’s biggest diabetes tech companies, said it secured Medicare coverage ahead of the planned launch of its G7 continuous glucose monitor on Feb. 17.
The Dexcom G7 will be accessible to all Medicare patients with diabetes who meet the eligibility criteria when the system launches, the company said in a statement on Monday.
The decision by the CMS will include coverage for people with Type 1 and Type 2 diabetes who are on intensive insulin therapy, which Dexcom wasn’t expected to secure until the end of the first quarter or early in the second quarter, J.P. Morgan Analyst Robbie Marcus wrote in a research note on Monday.
“This comes as a welcome surprise, and we will now be looking out for favorable pharmacy and DME commercial coverage in this patient population over the next several months,” Marcus wrote.
The decision doesn’t include coverage for Type 2 diabetes patients taking basal insulin, the company said. In its recent earnings call, Dexcom executives said they expect the CMS to make that decision mid-year. Basal insulin users accounted for about 1% of the company’s revenue in 2023.
In the meantime, Dexcom plans to offer a bridge program for customers paying in cash while it seeks broader insurance coverage.
Dexcom on Sunday aired a Super Bowl commercial announcing the new device featuring actor and singer Nick Jonas, who has Type 1 diabetes. The spot was its second in a row at the NFL championship game.