Medicare continuous glucose monitor coverage changes help Abbott, DexCom
Dragoljub Bankovic


A change in eligibility has expanded coverage for Medicare beneficiaries who use or need continuous glucose monitors (CGMs), benefiting companies like Abbott (NYSE:ABT) and DexCom (NASDAQ:DXCM).
The Centers for Medicare & Medicaid Services ("CMS") has long held that those eligible for the systems needed to take daily insulin injections.

The new policy is that one only has to have been diagnosed with diabetes but who also has a history of problematic hypoglycemia.
The change in policy became effective on Sunday.
Abbott (ABT) produces the FreeStyle Libre line of CGMs, while DexCom's (DXCM) key systems are the Dexcom G6 and Dexcom G7.
Medtronic (NYSE:MDT) and Senseonics (NYSE:SENS) are also key players in the CGM market.
Read why Seeking Alpha contributor Jonathan Wheeler calls DexCom (DXCM) a buy.