Dexcom Seeks Expanded Medicare Coverage of CGMs for Type 2 Diabetes

Why It Matters

Medicare coverage would dramatically enlarge Dexcom’s addressable market and accelerate adoption of CGM technology among the growing Type 2, non‑insulin population, reshaping diabetes care economics.

Key Takeaways

• Medicare coverage could unlock 12 million users
• 2025 revenue rose 16% to $4.66 B
• 15‑day G7 sensor rollout drives Q4 demand
• RCT results expected mid‑year for non‑insulin users
• Guidelines now endorse CGMs for Type 2 medication users

Pulse Analysis

The push for Medicare reimbursement marks a pivotal moment for Dexcom, as the agency’s decision could open the door to an estimated 12 million beneficiaries with Type 2 diabetes who are not on insulin. This demographic has historically been underserved by CGM technology, and broader coverage would not only boost Dexcom’s sales pipeline but also set a precedent for other payers to follow. In a market where chronic disease management is increasingly data‑driven, securing federal support could solidify Dexcom’s position as the go‑to provider for continuous glucose monitoring.

Clinical validation is equally critical. The American Diabetes Association’s recent guideline update, which recommends CGMs for patients on non‑insulin glucose‑lowering agents, aligns with Dexcom’s own real‑world evidence and a forthcoming 300‑patient randomized trial. By publishing robust outcomes that compare CGM use against standard care, Dexcom aims to demonstrate tangible health benefits—such as improved glycemic control and reduced complications—that can persuade both regulators and clinicians. This evidence base is expected to accelerate private‑payer adoption, creating a virtuous cycle of coverage expansion and market penetration.

Product innovation continues to underpin Dexcom’s growth trajectory. The launch of a 15‑day G7 sensor, featuring enhanced accuracy and durability, has already generated strong demand in the fourth quarter and is being scaled globally. Coupled with a 16% year‑over‑year revenue increase to $4.66 billion in 2025, the company’s pipeline reflects a balanced strategy of technological advancement and strategic market outreach. If Medicare approval materializes, Dexcom could see double‑digit revenue acceleration, reinforcing its leadership in the digital health landscape.

Dexcom seeks expanded Medicare coverage of CGMs for Type 2 diabetes

By Elise Reuter, Senior Reporter · Published Feb. 13, 2026

Dexcom CEO Jake Leach said the company has seen broader commercial coverage of glucose sensors for people with Type 2 diabetes who don’t take insulin. (Permission granted by Dexcom)

By the numbers

• 2025 revenue: $4.66 billion (16 % increase year over year)

• Net income: $836.3 million (compared with $576.2 million in 2024)

Dexcom is watching for expanded Medicare coverage of its continuous glucose monitors (CGMs) for people with Type 2 diabetes who don’t take insulin. New CEO Jake Leach told investors on Thursday that the company has been “sitting here waiting for a coverage decision” from the Centers for Medicare and Medicaid Services. Dexcom expects CMS to propose a coverage expansion in the first half of 2026, BTIG analyst Marie Thibault wrote in a note to clients Thursday.

Dexcom started to see commercial coverage unlock for Type 2, non‑insulin users toward the end of last year, Leach said. He expects broader Medicare coverage for that group would allow nearly 12 million people to access CGMs.

In the meantime, the American Diabetes Association updated its guidelines last year to recommend clinicians consider using CGMs for Type 2 diabetes when patients are taking glucose‑lowering medications other than insulin. Leach said that real‑world data the company has been generating supports that decision, and that Dexcom has launched a registry for non‑insulin users.

Dexcom plans to publish results of a 300‑person randomized controlled trial mid‑year comparing CGMs to the standard of care for Type 2 non‑insulin users, Leach added.

“Clearly, the private payers have started moving in the direction of coverage, and so we’re going to continue to do everything we can do to support a coverage decision here with Medicare,” the CEO said.

Dexcom’s 2026 revenue forecast of 11 % to 13 % year‑over‑year growth assumes no benefit from the Type 2 coverage expansion, RBC Capital Markets analyst Shagun Singh wrote in a research note.

15‑day sensor launch

Dexcom began a launch of its 15‑day sensor in December, starting with durable medical equipment providers. Leach said that the 15‑day G7 device includes enhancements Dexcom has made to its G7 sensor over recent years, and that the company has been getting good feedback on its longevity, reliability and accuracy. Dexcom started the rollout in the U.S. and plans to extend it globally.

Thibault wrote the rollout of the 15‑day sensor helped drive demand in the fourth quarter and is continuing into 2026.