Medicare Competitive Bidding Makes Big Impression On U.S. Diabetes Device Earnings

Johnson & Johnson and Abbott Laboratories each reported massive double-digit revenue drops for their U.S. diabetes product divisions in earnings reports this week, citing the impact of the national Medicare competitive bidding program for diabetes supplies. Roche had better-looking results for the most recent quarter, but also has taken a big hit from massive reimbursement cuts resulting from nationwide bidding.