Our client, a long-established medical device supplier, has built a national reputation for leadership in integrated diabetes management. By combining technological innovation and patient-centered design, the company brings advanced diabetes technology to Medicare and Medicaid beneficiaries across the country.
Among the devices it supplies are state-of-the-art insulin pumps and related technologies that support personalized, real-time diabetes care. For individuals with Type 1 diabetes, insulin pump therapy has been shown to improve glycemic control, reduce hypoglycemic episodes, and offer greater flexibility compared to multiple daily injections—contributing to safer management, improved quality of life, and higher treatment satisfaction.
As insulin pump technology continues to evolve, newer models frequently offer meaningful enhancements over earlier devices. Innovations in algorithms, wireless connectivity, and CGM integration regularly create new opportunities for improved clinical outcomes and more responsive care.
Yet as recently as 2024, a Medicaid program in the Midwest restricted reimbursement for insulin pump replacement to devices no longer under manufacturer warranty. This policy led to routine denials for newly prescribed pumps, even when medically justified. Providers reported confusion and frustration over inconsistent criteria, and claim denials prevented our client from supporting access to clinically appropriate technologies already in use across other state programs.
In response, Applied Policy worked closely with the supplier to identify key stakeholders within the state’s Medicaid program, including members of the Clinical Advisory Committee (CAC) and agency staff responsible for benefit design and device coverage. Drawing on clinical evidence, patient experience, and policy precedent, we developed a targeted engagement strategy that culminated in a formal comment letter to the CAC. The letter outlined the evolving clinical value of insulin pump technology and recommended policy changes to allow for case-by-case consideration of upgrades before warranty expiration when medically appropriate.
Based on the letter Applied Policy drafted, the CAC recommended revising the insulin pump replacement policy to allow for episodic consideration, and the state subsequently adopted the recommendation. As a result, this Medicaid program, which covers over 700,000 beneficiaries, now permits replacement of insulin pumps before manufacturer warranty expiration when clinically justified. The policy change has enabled our client to better fulfill its mission of connecting patients and providers with clinically appropriate technologies when they are needed most.
