Dobson | DaVanzo recently published an analysis commissioned by Dexcom, Inc. examining the impact of new Centers for Medicare & Medicaid Services (CMS) policies on reimbursement for continuous glucose monitors (CGMs) under the CY 2026 Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Final Rule. The study evaluates whether the shift from lump-sum purchases to a monthly rental model within the Competitive Bidding Program (CBP) will achieve CMS’s goal of reducing costs while maintaining beneficiary access to essential diabetes technologies. The analysis draws on literature review, supplier data, and stakeholder feedback to assess the financial and operational implications of the policy changes.

The analysis, titled, "Analysis of Continuous Glucose Monitor (CGM) Supplier Costs and Market Dynamics", found that the new reimbursement structure may place significant financial strain on suppliers. Under the rule, suppliers must take on additional responsibilities—including device maintenance, software updates, and patient support—while operating under reduced reimbursement rates through competitive bidding. Evidence suggests that the maximum monthly payment threshold may be insufficient to cover total supplier costs, particularly given the added operational requirements and delayed cost recovery under the rental model.

The study also found that the structure of the CBP may be poorly suited to the CGM market, which is characterized by limited manufacturer competition and high upfront capital requirements. These dynamics could reduce supplier participation, particularly among smaller or regional providers, potentially leading to disruptions in patient access. The analysis further highlights that reduced access to CGMs may increase hospitalizations and other costly care, offsetting any projected Medicare savings and undermining the policy’s intended goals. The full report is available on the Dobson | DaVanzo website.