Cost-Effectiveness Analysis of CGM

Beyond Upfront Costs

While CGMs have higher initial costs than traditional fingerstick testing, comprehensive cost-effectiveness analysis considers long-term outcomes.

Direct Cost Comparison

CGM Costs

• Monthly sensor/transmitter supplies: $75-$400
• Initial receiver (if needed): $200-$300
• Smartphone app: Usually free

Traditional Testing Costs

• Test strips: $0.50-$1.50 each
• Lancets: Minimal cost
• Glucose meter: Often free with strip purchase

Hidden Cost Considerations

CGM Benefits

• Reduced hypoglycemic events → fewer ER visits
• Improved A1C → lower complication costs
• Earlier detection of trends → preventive action
• Reduced fingerstick supplies

Long-term Savings

Studies suggest CGM use can reduce:

• Hospitalizations
• Diabetes-related complications
• Work absenteeism

Insurance Perspective

Insurers increasingly recognize that the upfront investment in CGM technology can result in:

• Lower total cost of care
• Reduced emergency utilization
• Better chronic disease management outcomes