Tandem gets almost $4000 per X2 pump.
Manufacture received revenue per pump which is not always the same as pump “cost” of course.
I just checked what the “cost” of our X2 was. About two years ago.
The “insurance” price was listed as $4150 for the X2.
It is the “list price” which is the really stupid price that means almost nothing.
Wow. The 670g only costs $2434?
(cost as in what the insurance pays to Medtronic)
That price seems way too low.
I am guessing that it is the $8k for the pump and $2k for the sensor. If that is the case, then there might be a good case for Tandem to get $2k for the upgrade from insurance, which would put many people’s copay in the $200 range. All conjecture of course.
Also note, MDT plays the rebate game better than anyone, so $8k could become $4k in real life.
Back in 2017, the Tandem X2 was list price of $4999.00 which was also the cost on a cash only installment plan. If a user want to pay cash up front/no insurance, the price varied from. $4050 to $4300 depending on who you asked and when. IMHO, now that Basal-IQ is out, and Control - IQ is right around the corner, prices will most likely increase commensurately.
No… we got our messages crossed. I sent you two replies— I think the first one was approximately $8300 or something. I had a few people in my group respond, and some came in as high as just under $10,000. That $2434 was one person’s cost for CGM—- a starter kit (transmitter is about $900??) and initial supplies.
Never thought about the cost for a trainer… That came up, too. $400 for a trainer. I know some people really like theirs, but… 
Yeah - not trying to be snarky but with Medtronic it really sounds like you get a trainer for life. I constantly hear people talking about their trainer and going to ask them this, that and the next thing.
With the X2, sure - we had a “training” session. More like us giving information to the “trainer”. It was not our first time on a pump (switched from Animas Ping) and I had already read the X2 User Guide. But I couldn’t tell you who the trainer was nor even have a clue on how to contact them again. That was totally a “once and done” just to avoid making unnecessary waves.
So anyway, yeah. The pricing on the Medtronic is substantially higher than the X2. Not even in the ballpark.
Tandem (as a company) gets almost $4000 allocated to its revenue for each X2 pump sold in the USA. International is a different pricing discussion but basically lower revenue on the pump and higher revenue on the supplies with the four year total coming out about even between International and USA.
I think the incremental cost on the Control-IQ is really only about $200 total. But that is guess-work and Tandem is right now in discussions with payors (ie - insurance companies) to see how much more they can negotiate to get for the X2. There was no pricing change that I am aware of in regards to the Basal-IQ.
Cash price on the X2 is $5000. Insurance price is usually in the $4300~$4500 range. If paying cash, it should be possible to negotiate the X2 price down at least to $4500 if not even a little lower.
Given the exclusive deal that Medtronic has with UHC, I expect there are serious rebates being passed in the back channel that brings the cost to UHC way down.
Some people, yes. Some people sound like they’ve made a friend. Others have never been contacted or spend their days sending off texts into a void, hoping to hear back on a question. I think I hear an equal amount of stories on both sides.
The rest of your message… very interesting, but I… don’t have anything to say in response. If you can believe it. I don’t know much about this other than the rough costs of the pumps, the fact UHC is in with Medtronic, and that Control-IQ is not going to be free. That’s the depth of it, and I’m not even sure I have that right.
And now I need a nap.
Don’t sell them short on this one. Although this was the new CEO (John Sheridan) who was saying this, it was very similar to how the previous CEO (Kim Blickenstaff) described this. I am positive that Kim B. told John S. exactly what and how to say this.
This is the wording that Kim B. had used previously:
Customers are reporting that it’s helping prevent lows and also avoid the rebound high-blood glucose that people of diabetes often experienced when they’re forced to treat unexpected lows.
The clear intent is to let it be know (direct from the manufacturer) the X2 pump with Basal-IQ is effective at reducing both highs and lows while at the same time avoiding a warning letter from the FDA.