Coverage for Innovative Technologies

Policy must keep pace with innovation

The Problem

Managing diabetes is different for every individual, with 42 known factors that can affect blood glucose levels. Advancements in technology like continuous glucose monitors (CGMs) and insulin pumps have revolutionized our ability to manage the disease, but many face barriers to access due to inconsistent insurance coverage.

The Solution

Arkansas legislators mandated that their Medicaid program cover CGMs, protecting the state’s most vulnerable residents from dangerous and costly health complications.

New Diabetes Technology is Changing Lives

To keep blood glucose levels in a safe range and avoid devastating complications like heart attacks, strokes, kidney failure, blindness, or amputations, people with diabetes must constantly adjust their care.

Recent advancements in diabetes technology have revolutionized diabetes care, including:

Continuous Glucose Monitors (CGMs)

These devices provide real-time blood glucose readings throughout the day.

Insulin Pumps

These pumps deliver insulin more precisely and flexibly than traditional methods.

Artificial Intelligence (AI) Integration

AI-driven software links CGMs and insulin pumps, improving blood glucose control and helping patients avoid dangerous complications and trips to the emergency room.

These tools help patients keep their blood glucose within a healthy range for longer periods, improving health outcomes and lowering healthcare costs.

Barriers to Accessing New Technology

Access to these tools is often limited by inadequate insurance coverage. Many health plans don’t cover all types of CGMs, insulin pumps, or related software, and some only cover certain brands. This can cause problems for patients, especially those who already use a device that isn’t compatible with what their insurance covers. For example:

  • Some pumps don’t work with certain CGMs, but patients may already own a pump with a multi-year warranty. Requiring them to switch devices just to limit CGM compatibility is both costly and inefficient.
  • User interfaces for diabetes technologies are often designed for specific groups, such as children or adults, so patients need access to the product that works best for them.

Clinical Guidelines Have Evolved, but Legislation Lags

The American Diabetes Association now recommends CGMs as the standard of care for anyone with diabetes using insulin therapy, including youth and adults. It also recommends CGMs for some adults with Type 2 diabetes who use other glucose-lowering medications.

Despite these recommendations, Medicaid coverage of CGMs varies widely across states, with some covering them under prescription benefits while others classify them as durable medical equipment (DME). Across the country, coverage differentiates between people with Type 1 versus Type 2 diabetes as well as between children and adults. Some states create additional prior authorization barriers alongside prescriber and diabetes-specific requirements.

Arkansas Expands Medicaid Coverage for CGMs

Arkansas legislators are leading the way by requiring their Medicaid program to cover CGMs for people with diabetes. This legislation helps patients access important tools to manage their disease and lower costs for the state.

Medicaid policies are shaped by federal guidelines, but individual states determine the details of benefits covered. Arkansas’s decision to cover CGMs helps patients avoid costly ER visits, hospital stays and treatment complications—driving overall cost efficiency to benefit all.

One study found that using a CGM for just nine months can save $4,000 per patient in healthcare costs.

By expanding access to CGMs, Arkansas is improving health outcomes for its most vulnerable residents while managing state resources more efficiently. Other states can follow this example to reduce healthcare costs and improve care for people with diabetes.

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