Biden Administration Asks Manufacturers to Price COVID Shot ‘At a Reasonable Rate’ This Fall

The federal government is transitioning its COVID-19 vaccine distribution program to the commercial market, and advising companies on timing, pricing and distribution of the shots.

In a public letter to vaccine manufacturers Pfizer, Moderna and Novavax, US Department of Health and Human Services (HHS) Secretary Xavier Becerra said that the agency expects “that vaccines will remain available in the types of locations where the public currently receives them – including pharmacies, clinics, healthcare provider offices, health departments, and other points of care – to maximize access."

Becerra also warned companies against price gouging, writing "Updated COVID-19 vaccines entering the market this fall should be priced at a reasonable rate, reflective of the value that you have obtained through U.S. government investment.”

“Price gouging behavior takes advantage of the trust the American people have placed in you through the COVID-19 response,” Becerra added.

Pfizer had said in October they may sell doses for as much as $130 each, but for the consumer, Medicare and insurance would cut down that cost significantly. It is not yet known what the average American will pay for a dose this fall.

HHS also expects the pharmaceutical companies to update the vaccine to target the XBB.1.5 subvariant, to plan "an ample supply of doses" and to prepare to submit the shots to the Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) in time for them to be ready to distribute by early fall.

"Manufacturers are advised that they should plan the updated COVID-19 vaccine supply and regulatory submissions so that the FDA can take regulatory action and the CDC can make recommendations on vaccination by the latter part of September," the letter reads.

Further, HHS reminded companies that the CDC plans to purchase a stock of shots to provide for the uninsured and underinsured through their Bridge Access Program.

"That part of the program will be supported via a partnership between the Federal government and pharmacies, and not with the manufacturers. However, HHS knows that this critical piece of the program can only function well with your support and provision of vaccines," he wrote.