JJ Gouin
The COVID-19 emergency is expected to end in May, the Biden administration told lawmakers and governors last week, outlining how that will affect a multitude of pandemic-era countermeasures, including what was largely free use. of vaccines and COVID treatments.
In a letter sent to governors Thursday, Health Secretary Xavier Becerra extended the federal public health emergency (PHE) for another 90 days from February 11, saying he hopes it will be the latest renovation based on current pandemic trends.
The announcement comes at a time when daily COVID cases have declined 92% since Omicron’s peak in January 2022, leading to an 80% or greater decline in COVID-related hospitalizations and deaths.
First declared in early 2020, PHE saw the launch of Pfizer (New York Stock Exchange: PFE)/BioNTech (NASDAQ:BNTX) and modern (NASDAQ:MRNA) Vaccines against COVID developed with mRNA technology. Johnson and Johnson (New York Stock Exchange: JNJ) and Novavax (NASDAQ:NVAX) joined the fray later with its more traditionally designed vaccines.
In 2021, Pfizer (PFE) and Merck (MRK)/Ridgeback Biotherapeutics opened a new battlefront with oral COVID therapies, joining the likes of Gilead’s intravenously administered antiviral remdesivir (GILD).
During the emergency phase, Americans enjoyed free access to these vaccines and treatments regardless of their insurance status, thanks to government-led procurement for the Federal Reserve.
That will change in May when the emergency phase of the pandemic expires. People, regardless of their health care policy, will be able to receive these vaccines and treatments at little or no cost while government-directed procurement lasts.
However, there will be significant changes as supplies run out and manufacturers move their products to a private market as the federal reserve dwindles without additional funding from Congress.
Pfizer (PFE) and Moderna (MRNA) hope to transition their products to a commercial market and charge between $110 and $130 per dose of vaccine. from $26 – $30 implicit in the latest government contracts.
That puts the uninsured and underinsured in a difficult situation, as they will either have to pay the full cost out of pocket or seek free or low-cost vaccines through a different pandemic relief program, which is also being was affected after federal funds ran out. in the spring of 2022.
However, vaccines will continue to be free under Medicare Part B and most private insurance plans, even after the emergency has expired. Many people with job-based private insurance will also have free access to vaccines as long as their providers are in-network.
A recent KFF report indicated that the cost of buying vaccines for even half of US adults at new higher prices would reach $12.4 billion – $14.8 billion, almost double the estimated $7.5 billion for all adults assuming vaccines were purchased at the average federal price.
As for COVID treatments, people with Medicare will face cost-sharing once the PHE ends, while there will be no change in coverage for most with private insurance, as many private payers began to reintroduce cost-sharing . for therapeutics at the end of 2021.
However, Medicaid – the federal and state health system insurance program for those with low income, it will continue to cover vaccines and treatments free of charge until September 30, 2024. Coverage will vary thereafter.
The end of PHE will not affect the emergency use authorizations (EUAs) that the FDA introduced to expedite the response to the pandemic. The agency will continue to issue EUAs as this provision relates to a separate emergency declaration.
Ocugen (OCGN), Veru (VERU) and Vaxart (VXRT) are among the companies that continue to review US approvals for their new COVID-19 injections and therapies.
The Seeking Alpha authors discussed how vaccine manufacturers respond to a private market. Despite management assurances, investors need to carefully assess Pfizer’s (PFE) transition plans, JR Research recently wrote, while Edmund Ingham raised concerns about whether Novavax (NVAX) can be competitive in a private market.
