OIG report finds Medicare overpaying for CGMs and supplies

Dive Brief:

A government watchdog recommends Medicare reduce payments for continuous glucose monitors and supplies.

A report issued Tuesday by the Department of Health and Human Services’ Office of Inspector General found that Medicare payments for the diabetes devices and supplies exceed supplier costs and retail prices.

The OIG recommended the CMS use its competitive bidding program or “inherent reasonableness” authority to reduce payments for CGMs. The CMS earlier this year issued a proposed rule seeking to include insulin pumps and CGMs in a competitive bidding program, and to change payments to a monthly rental schedule instead of an upfront contract.

Dive Insight:

Medicare first started covering CGMs under Part B in 201