Myomo, Inc. a wearable medical robotics company that offers increased functionality for those suffering from neurological disorders and upper-limb paralysis, provided an update on reimbursement for its MyoPro device by a large private payer that was denying pre-authorized claims after delivery of devices to patients. For the three and nine months ended September 30, 2021, revenue from patients insured by this payer represented 32% and 30% of total revenues, respectively.
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As of today, approximately 90% of the claims that were denied with dates of service in September and October 2021 have been paid, either in whole or in part, and none of the appeals submitted to the payer have been denied. Although pre-authorized claims filed with dates of service after November 10, 2021 – the date on which the Company disclosed this issue – continue to be denied by this payer, Myomo’s interactions with the payer lead the Company to believe that these post-service denials are an internal processing issue within the payer’s operations, which the payer intends to resolve. This payer continues to pre-authorize new devices for patients.
At present, the Company does not intend to change its revenue recognition practice as it relates to this payer; however, the Company cannot provide any assurance that future events will not change this determination for any revenues recorded in or subsequent to the fourth quarter of 2021 with respect to this payer.
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