How Should COVID-19 Vaccines Be Priced?

The US government has entered into contracts with several pharmaceutical companies to deliver COVID-19 vaccines. Although it is currently not clear how long immunity from these vaccines will last and if booster shots will be needed, vaccination efforts have provided much-needed hope. However, questions remain over the future of vaccine pricing. If the burden for yearly booster shots falls on insurers and individuals, high prices could lead to inequity. ICER has published a report on pricing recommendations during the pandemic.

According to Dr. Aaron Kesselheim from Harvard University, “The fast development of Covid-19 vaccines is something to celebrate. It is appropriate at the same time to celebrate the contribution that taxpayers have made to these successes. By seeing that the shots are priced according to a cost-plus model, the Biden administration can ensure that all Americans can always afford to be inoculated.” Learn more here.

(Source: Aaron Kesselheim, Bloomberg Opinion, 1/22/21)