Arrayit Corporation (ARYC)

[rh22]

I have recently been informed that pricing/reimbursement rates for tests through insurance is guided by what Medicare pays for a test.

The general rule of thumb is the insurance rate is 2 to 3 times more than the Medicare rate.

So - as someone has noted - if the Medicare reimbursement rate is $5 per allergy test, then the rate through insurance companies is at best $15 per test.

Of that amount ARYC might get 50%. That is about $7 to $8 a test.

So if ARYC has billed about $25 million over the last 4 weeks or so, ARYC's revenue is around $2 million per month, which is about $24 million per year.

Factor in costs and you can see why the allergy test will not be ARYC'S salvation given past levels of debt.

The hype needs to stop.

Sad, true and depressing.