The federal government warned that it anticipates running out of money to purchase or distribute COVID-19 vaccine doses as early as January next year without funding from Congress and is preparing to offload the bill for vaccine doses, tests, and antivirals to insurers and people.
The Department of Health and Human Services met with over 100 representatives from state and local governments, insurers, pharmacies, and vaccine manufacturers on Tuesday to underscore the need to move up a timeline to transition the COVID-19 response from the federal government to the commercial market as federal funding runs low.
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“As early as January 2023, the Administration anticipates no longer having federal funds to purchase or distribute vaccines and will need to transition these activities to the commercial market, similar to seasonal flu or other commercially available vaccines,” wrote Dawn O’Connell, the assistant secretary for preparedness and response, in a blog post.
O’Connell said that additional federal funding was “urgently needed” to support the commercialization process and continue a range of response efforts, such as the development of new vaccines and tests, in the meantime.
“We are prepared for all scenarios and to maximize access to vaccines and treatments for the American people,” O’Connell said. “Our goal is to transition procurement and distribution of COVID-19 vaccines and therapeutics from a federally managed system to the commercial marketplace in a thoughtful, well-coordinated manner that leaves no one behind.”
The Biden administration had requested $10 billion from Congress earlier this year to purchase and stockpile additional tests, updated shots, and antivirals, but that effort stalled as some Republican lawmakers argued that the current COVID-19 funding hadn’t been fully exhausted.
O’Connell said that the federal government has already transitioned Bebtelovimab, an antibody treatment, to the commercial marketplace earlier this month and expects to turn over Paxlovid, an antiviral therapy, by mid-2023 as it runs out of the current federal supply.
The Biden and Trump administrations have long maintained that the commercialization process was eventual as the pandemic turns from months into years. Though the transition is expected to take months, once complete, COVID-19 vaccine doses and treatments will be offered through a doctor or another healthcare provider, such as a hospital.
The Biden administration is ending a program delivering free at-home COVID-19 tests to people’s addresses on Friday, citing a lack of congressional funding.
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It’s unclear at what cost, if any, vaccine doses and treatment would be offered in the commercial market. The federal government has provided both to people for free since early in the pandemic.
