Pfizer CEO Albert Bourla claimed at a news event last week that the company's vaccine will remain free to all Americans despite the company's plan to raise the price by 400 percent.
The company said in October that it plans to raise the price of a dose of its vaccine from $30 to between $110 and $130 as it moves the shots to the commercial market.
The US government paid $30.48 per dose for its latest vaccine supply agreement from June, which was the last time all COVID-19 vaccines in the US were bought by the government. $24 per dose was paid by the US government in July 2021. Americans were given all the doses for free.
Health insurance companies are expected to pick up the tab. "If we enter a traditional commercial model, anyone with commercial or government insurance who is eligible to be vaccination should be able to access the vaccine without any out-of-pocket payments," said the president of global primary care at Pfizer.
Bourla thought that the price hike would be free.
He said that Americans would not see a difference. Regardless of the insurance they have, the vaccine will be free.
AdvertisementBut outsiders quickly pointed out flaws in that statement. The shots would no longer be free for people who don't have insurance. The price hike is not free for people with insurance because of the lack of out-of-pocket costs. Health insurance companies may pass on the increased cost in the form of higher premiums.
Bob Herman pointed out that the cost comes out of workers' paychecks.
David Mitchell is a co- founder of Patients for affordable drugs. Boswell said that the vaccine will be free. Mitchell said it wasn't true. It's more Bourla/ pharma double talk.
Moderna doesn't know what price it will set for its vaccine when it goes to the commercial market next year. Financial analysts said that Pfizer's price could drive up the prices of competitors.
Pfizer's price isn't out of the norm for vaccinations. The annual flu shot can range from $50 to $95 for those without insurance, but there are other vaccines that can be had for less money.
Pfizer's price is higher than financial analysts expected for the vaccine. An analyst at Wells Fargo wrote in a research note that this is much higher than they thought. The pricing could add up to $3 billion to Pfizer's yearly revenue.
It's not clear how the price hike will affect the booster. It's dismal at the moment. According to the Centers for Disease Control and Prevention, only 11 percent of Americans eligible for an updated COVID-19 booster have received one.
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