Insulet’s Insulin Pump Gets Medicare Coverage

Medicare will now cover patch pumps for insulin delivery treatment, which expands diabetes patients’ access to treatment options under Medicare Part D.

The coverage decision is incredibly valuable to Billerica, Mass.-based Insulet Corp. because it means Omnipod, its tubeless insulin pump, will be eligible for reimbursement under Medicare and many state Medicaid programs. According to Insulet, the Centers for Medicare & Medicaid Services’ Jan. 5 coverage decision expands the product’s potential market to about 450,000 additional U.S. individuals with Type 1 diabetes.

On the day of the CMS coverage decision, Insulet’s stock jumped almost 14 percent from the previous trading ...