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In brief: CGM overpayments, Abbott device correction, veterans’ Parkinson’s risk

In brief: CGM overpayments, Abbott device correction, veterans’ Parkinson’s risk

WASHINGTON – Medicare payments for continuous glucose monitors (CGMs) and supplies exceeded supplier acquisition costs by $377 million (or 69%) and their total estimated costs by $70 million (or 8%) in one year, according to a new report from the Office of Inspector General (OIG). 

Medicare Part B payments for CGMs and supplies rose from $109 million in 2018 to $1.3 billion in 2023. Of note, CMS expanded CGM coverage to beneficiaries with Type 2 diabetes in 2023 

The OIG compared Medicare payments for CGMs and associated supplies to the costs incurred by suppliers and to retail prices to assess the potential for Medicare cost savings. Previous OIG work determined that Medicare was paying more than other payers for other types of durable medical equipment (DME), inflating Medicare’s overall expenses and the enrollee copayments. 

The OIG found that: 

  • CGM supplies represent the largest potential number of dollars saved. Medicare payments exceeded supplier acquisition costs by $359 million and their total estimated costs by $61 million. Medicare payments for CGM supplies also exceeded retail market prices by $290 million in one year. 
  • Suppliers received $7 million in potential overpayments based on improper coding of CGMs and supplies. Suppliers billed Medicare for CGMs and supplies that have higher payment rates but provided CGMs and supplies that should have had lower payment rates. 

The OIG recommends: 

  • CMS should pursue reductions to Medicare’s payment rates for CGMs and supplies. In July 2025—during the course of this review—CMS issued a proposed rule to use the competitive bidding program and CMS’s inherent reasonableness authority for CGMs and supplies. CMS stated in the proposed rule that these actions would reduce Medicare payment rates. 
  • CMS should take action to prevent overpayments caused by suppliers improperly using billing codes for CGMs and supplies to achieve potentially millions of dollars of cost savings for Medicare and enrollees. 

CMS concurred with both recommendations. 

Abbott issues correction for Freestyle Libre 3 and 3 Plus sensors 

At issue: potential false low glucose readings 

ABBOTT PARK, Ill. — Abbott has initiated a medical device correction for certain FreeStyle Libre 3 and FreeStyle Libre 3 Plus sensors in the United States after internal testing determined that some sensors may provide incorrect low glucose readings.  

This action involves approximately 3 million Libre 3 and Libre 3 Plus sensors in the U.S. from one production line, about half of which are estimated to have expired or been used. Globally, Abbott has received reports of 736 severe adverse events (57 in the U.S.) and seven deaths (none in the U.S.) potentially associated with this issue. Abbott has identified and resolved the cause of the issue, which relates to one production line among several that make Libre 3 and Libre 3 Plus sensors.  

Important instructions for users: 

  • Consumers should visit www.FreeStyleCheck.com to confirm whether their sensor is potentially affected by this medical device correction. Abbott will replace any potentially affected sensors at no charge. Detailed instructions on how to check sensors and request a replacement are available on the website. 
  • If consumers are currently wearing or have a sensor that has been confirmed as potentially impacted on www.FreeStyleCheck.com or by a customer service representative, they should immediately discontinue use and dispose of it.  
  • Consumers should use a blood glucose meter or the built-in meter in the FreeStyle Libre 3 reader to make treatment decisions when sensor readings don’t match symptoms or expectations. 

FreeStyle Libre 3 readers and mobile apps are not impacted. Additionally, no other Libre products (FreeStyle Libre 14 day, FreeStyle Libre 2, FreeStyle Libre 2 Plus, or FreeStyle Libre Pro sensors) or Abbott biowearables are impacted. 

F&P Healthcare reports ‘strong result’ in first half 

AUCKLAND, New Zealand – Fisher & Paykel Healthcare reported total operating revenue of $1.09 billion for the first half of the 2026 financial year, a 14% increase year over year. Net profit after tax was $213 million, a 39% increase. 

“Our people have continued to work closely with clinicians, progress work on new products and deliver a range of efficiency improvements across the business,” said Managing Director and CEO Lewis Gradon. “This is a strong result against the backdrop of robust growth in the first half of last year. We saw broad-based strength across the Hospital consumables portfolio during a period of lower seasonal respiratory hospitalizations, and in Homecare, our latest range of masks for treating obstructive sleep apnea has performed well.” 

For the Homecare product group, which includes products used in the treatment of obstructive sleep apnea (OSA) and respiratory support in the home, F&P reported revenue of $395.9 million for the first half of the year, a 10% increase. The company reported a 6% increase in revenue, on a constant currency basis, for OSA masks and accessories, specifically. 

F&P says it now expects full-year operating revenue in the range of about $2.17 billion to $2.27 billion, up from $2.15 billion to $2.25 billion; and full-year net profit after tax in the range of about $410 million to $460 million, up from $390 million to $440 million. 

Mike Hamilton passes away 

BIRMINGHAM, Ala. – Mike Hamilton, former executive director of the Alabama Durable Medical Equipment Association (ADMEA), has passed away. Hamilton, who retired in September, was named the recipient of the 2025 Mal Mixon Legislative Advocate Award in recognition of his dedication to the durable medical equipment (DME) industry. His leadership and advocacy helped shape the industry and improve access to care for countless patients, said VGM Government Relations in an announcement. “Mike was more than a leader – he was a mentor, a friend and a tireless advocate for providers and the communities they serve,” it stated in a bulletin. “His influence extended far beyond Alabama, leaving a lasting impact on the national DME landscape. As we reflect on his remarkable career and contributions, we are reminded of the values he championed: dedication, service and compassion. Mike’s legacy will continue to inspire all of us who work to advance patient care and strengthen the DME community.” 

HHS launches AI contest to support caregivers 

WASHINGTON —The U.S. Department of Health and Human Services (HHS) has announced a new $2 million Caregiver Artificial Intelligence Prize Competition to support the one in four Americans serving as caregivers for older adults and people with disabilities. “America’s caregivers carry our nation’s most vulnerable on their shoulders, and they do it with a strength and devotion that rarely gets the recognition it deserves,” said Health and Human Services Secretary Robert F. Kennedy, Jr. “With the Caregiver AI Challenge, we are advancing the goals of the Make America Healthy Again Strategy Report by mobilizing innovation to lighten caregivers’ load and ensure every family has the support they need to care for the people they love.” The AI Prize Competition, through HHS’s Administration for Community Living (ACL) will fund and recognize innovators developing tools that: 

  • Support caregivers—including family, friends, and the direct care workforce—in providing safe, person-centered care at home. 
  • Support employers by improving efficiency, scheduling, and training in the caregiving workforce. 

“Through this prize competition, we aim to identify technologies that empower caregivers and expand access to high-quality care at home,” said Acting Administration for Community Living Administrator and Assistant Secretary for Aging Mary Lazare. “ACL is committed to advancing scalable, practical solutions that improve the lives of the millions of Americans who give and receive care every day.” 

Veterans with OSA more likely to develop Parkinson’s, but CPAP could reduce risk 

CHICAGO – U.S. veterans with obstructive sleep apnea (OSA) had a significantly higher risk of developing Parkinson’s Disease, but this risk was reduced with early CPAP intervention, according to a recent study published in JAMA Neurology. These data establish additional clinical rationale for early screening and intervention of sleep-disordered breathing as a key strategy in supporting brain health, researchers say. The study looked at electronic health records of U.S. veterans from Jan. 1, 1999, to Dec. 30, 2022, with mean (SD) follow-up of 4.9 (1.8) years. Veterans with Parkinson’s Disease at the time of exposure or incomplete records were excluded. Data analysis was completed from September 2024 to September 2025. A total of 13,737,081 veterans were screened, and 11,310,411 veterans (1 109 543 female veterans [9.8%]) with mean (SD) age of 60.5 (14.7) years were included in analyses. Of included veterans, 1,552,505 (13.7%) had OSA. Veterans with OSA demonstrated 1.61 additional cases of PD (point estimate; 95% CI, 1.13-2.09) at six years from diagnosis per 1,000 people compared to those without OSA. Results were confirmed when adjusting for body mass index, vascular comorbidities, psychiatric conditions and relevant medications and were of greater magnitude in female veterans. Case numbers were significantly reduced when treated with CPAP early in the disease course.

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