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Myriad Genetics Inc. ( MYGN - Analyst Report) disclosed a financial assistance program for underinsured patients. Following the move, it seems like this molecular diagnostic company has left no stone unturned to improve adoption rates for its market-leading diagnostic tests.
Per the program, effective Jul 22, Myriad will offer financial assistance to ensure lower out-of-pocket costs for qualified uninsured patients. Accordingly, the patients will pay no more than $375 for Myriad’s expensive diagnostic test line.
The expanded financial support from Myriad applies to the company’s entire portfolio of diagnostic tests. Patient eligibility depends upon private insurance, ability to meet insurance’s coverage criteria for testing and low income requirements (households living within 200% of the Federal poverty level).
The latest program will extend the company’s financial assistance program that currently offers free testing for low income uninsured patients (household income below 200% of the Federal poverty level) and interest-free tailored payment plans for all patients to accommodate specific financial situations. To date, over 35,000 patients have gained access to Myriad’s gamut of tests.
Based on Commonwealth Fund's 2012 Biennial Health Insurance Survey, about 30 million individuals in the U.S. remain uninsured. Furthermore, 80 million Americans skipped required health care (doctor’s visit and prescriptions) in 2012 due to cost constraints.
Considering the significant population of underinsured individuals in the U.S., Myriad’s financial support to patients is likely to improve adoption rates for its premium tests. We believe that the development should augur well for the long-term growth of the company. Nonetheless, the impact of the patent litigation and market conversion to its myRisk hereditary cancer test are areas of concern. Thus, we remain on the sidelines for Myriad.
The stock carries a Zacks Rank #3 (Hold). Other players such as Cepheid ( CPHD - Analyst Report) , Luminex Corporation ( LMNX - Analyst Report) and MAKO Surgical Corp. appear impressive. These stocks carry a Zacks Rank #2 (Buy).