To date, MNKD has treated Afrezza as if its demand is inelastic, which means that a change in its price will produce no difference in Afrezza demand. In fact, it has been steadily increasing Afrezza's price to commercial health insurance companies, probably doing so to make up for the low volumes of Afrezza demanded, and the high unit costs associated with the low demand.
Why not give Medicare a nice price break, to see how elastic Afrezza's demand actually is? Any Medicare patient who has a positive experience in using Afrezza will cause some carryover to the commercial side. Also, Medicare patients are mainly Type II diabetics (vs. Type I for commercial) and make up 90-95% of all diabetics, which should cause very little market overlap. JMHO.