Medicare payments for continuous glucose monitors and supplies were greater than supplier costs, according to a Nov. 25 report from the HHS Office of the Inspector General.
OIG reviewed costs between July 2022 and June 2023. Medicare Part B payments increased from $109 million in 2018 to $1.3 billion in 2023 for CGMs — a wearable technology for diabetes management — and related supplies.
In one year, payments exceeded suppliers’ acquisition costs by 69% and total estimated costs by 8%. The majority of Medicare payments were for monthly supplies, as CGMs themselves are not replaced often.
Suppliers also received $7 million in possible overpayments due to improper coding for these resources, according to the report.
Based on these findings, OIG recommended efforts to stop overpayments. The office also supported reducing Medicare payment rates for CGMs and supplies, building off a competitive bidding program update.
