Pricy Transition: COVID-19 Treatments Transition from Federal Funding to Private Markets

The COVID-19 therapeutic medications that millions of Americans have been accessing without charge through federal initiatives will soon transition to the private market, featuring substantial pricing.

Pharmaceutical behemoth Pfizer has established a pricing model for a five-day regimen of its antiviral medication Paxlovid, setting it at $1,390 per course. Despite this, Americans may continue to avail themselves of the medication free of charge, at least temporarily. Another less frequently utilized COVID-19 treatment, Lagevrio by Merck, is also slated for commercial availability in the coming week.

U.S. Health and Human Services officials confirmed on Friday that millions of courses of these medications, financed by taxpayers, will continue to be available in pharmacies, healthcare institutions, and medical practices nationwide. However, individuals with private insurance may encounter copayments for these treatments once the federally-supplied stock is exhausted at their healthcare provider’s location.

Initially, the U.S. government had entered into an agreement with Pfizer, committing over $5 billion for the procurement of 10 million Paxlovid courses in 2021.

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Under a revised agreement executed last month between Pfizer and the U.S. government, those covered by Medicaid, Medicare, or lacking any form of medical insurance will not face any out-of-pocket expenses for the antiviral treatment through the end of the subsequent year. Furthermore, Pfizer has committed to offering copay assistance for Paxlovid through 2028. Entities such as the Department of Veterans Affairs, the Department of Defense, and the Indian Health Service will continue to have access to government stockpiles of the medication. The federal government will also retain 1 million courses of the treatment for its strategic reserve.

Healthcare supply chains serving pharmacies, medical practices, and hospitals will be eligible to place orders for these therapeutic agents directly from the pharmaceutical companies beginning next week.

In a formal statement disseminated to The Big Big News, Pfizer affirmed its commitment to ensuring a seamless transition to the commercial market. The company emphasized its collaborative approach with the U.S. government and healthcare stakeholders to ensure widespread and equitable access to this critical medication.

Paxlovid has been employed in the treatment of COVID-19 since the year 2021. The Food and Drug Administration accorded it full approval earlier this year for use in adult patients at elevated risk of hospitalization or mortality due to COVID-19. This demographic commonly encompasses older adults and individuals with pre-existing conditions such as diabetes, asthma, and obesity.

Projected annual revenues for Pfizer from both Paxlovid and its COVID-19 vaccine, Comirnaty, are estimated to be around $12.5 billion.

Merck has yet to disclose a list price for its Lagevrio treatment but announced in a statement to the Associated Press that the medication would be offered free of charge to patients who are financially incapable of affording the drug.

Report by Tom Murphy from The Big Big News in Indianapolis contributed to this article.

Frequently Asked Questions (FAQs) about COVID-19 treatments transition

More about COVID-19 treatments transition

• Pfizer Official Statement on Paxlovid Pricing
• U.S. Health and Human Services Announcement
• FDA Approval for Paxlovid
• Merck Statement on Lagevrio
• Revised Agreement Between Pfizer and U.S. Government
• Projected Annual Revenues for Pfizer
• Food and Drug Administration Warnings and Approvals
• Associated Press Coverage on COVID-19 Treatments