Here’s what you need to know
1. The grace period will cost Medicaid an unknown amount. Neither Mylan nor the federal government is elaborating on the terms of the grace period deal.
2. Evercore ISI senior managing director Umer Raffat said Medicaid could have been entitled to a “nearly 99 percent rebate from Mylan without that grace period.”
3. The high rebate would’ve made Medicaid’s net spending almost zero.
4. Mylan will pay the federal government the $465 million it settled for, but Mylan could receive up to $120 million in rebates during the grace period.
5. Mr. Raffat noted that if Mylan has its inflation rate calculation refigured it would receive a significantly decreased rebate.
6. CMS is withholding Mylan’s rebate level for 2017, making accurate projections of money lost during the grace period “impossible to know,” the article explains.
7. Mylan and CMS did not mention the grace period in statements to the media.
More coding, billing and collections news:
Trump: Permit payers to sell coverage across state lines — 7 insights into the proposal
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