Abbott Introduces Affordable OTC Glucometer Amid Reimbursement Pressures
By Jof Enriquez,
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Abbott recently received FDA clearance for a new over-the-counter glucose monitor that is a more affordable alternative to expensive branded glucometers and test strips. Patients can purchase the device without related insurance paperwork or copays.
The FreeStyle Precision Neo Blood Glucose Monitoring System is available in pharmacies and retailers in the United States for $14 to $17 for 25 strips and a one-time fee for the meter, which ranges from $22 to $28, according to a press release from Abbott.
Citing the American Diabetes Association, the company said that diabetics pay approximately 2.3 times more for their medical care than people who do not have the chronic condition. Direct medical expenditures for a person with diabetes can reach up to $7,900 annually. The prices of branded meters and strips are out of reach for many diabetics, but Abbott's new device offers a cheaper alternative without sacrificing diagnostic quality.
"People with diabetes depend every single day on trusted, high-quality tools to monitor their glucose levels," said Robert Ford, senior VP, Diabetes Care, Abbott, in the press release. "This dependence makes it even more important to ensure people have affordable access to accurate, fast, and easy-to-use systems such as FreeStyle Precision Neo system. Today, more than ever, consumers have more influence on their healthcare decisions, and Abbott is focused on offering products that provide the highest standard of accuracy, and are also affordable and easily accessible over the counter."
The slim FreeStyle Precision Neo System device features a large touchscreen, e-ink display with simple icons and can produce a blood sugar reading within 5 seconds. Its onboard memory can hold up to 1,000 readings.
Abbott developed the easily accessible and lower price offering in response to cuts in reimbursements of diabetes supplies introduced in 2013 by the Centers for Medicare & Medicaid Services (CMS). Under new rules, Medicare beneficiaries can only get their diabetes testing supplies (DTS) from suppliers based on a mail-service fee schedule.
According to an article from the American Pharmacists Association, reductions in Medicare reimbursement for DTS under the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Program add up to 72%. In addition, the process of filing healthcare insurance paperwork for reimbursements can be cumbersome.
Abbott said in the release that their new device can be paid for out-of-pocket, directly over-the-counter, eliminating the need for insurance copays and paperwork.
Reimbursement cuts have negatively impacted Abbott's Diabetes Business. In its Q4 2014 financial report, the company stated that Worldwide Diabetes Care sales decreased 5.5 percent in the quarter on an operational basis and 9.6 percent on a reported basis, including an unfavorable 4.1 percent effect of foreign exchange.
The tight reimbursement and competitive environment have affected other diabetes device manufacturers as well. Bayer was reportedly nearing a deal to divest its underperforming diabetes unit earlier this year, although no deal has been announced to date.
Image credit: Abbott