January, 10 2023, 01:04pm EDT
![Senator Bernie Sanders](https://assets.rbl.ms/32012641/origin.jpg)
In Letter to CEO, Sanders Calls Moderna Plan to Raise Price of COVID-19 Vaccine "Unacceptable Corporate Greed"
BURLINGTON, Vt.
Following news reports that the pharmaceutical corporation plans to quadruple its price for the COVID-19 vaccine up to $130 per dose, Sen. Bernie Sanders (I-Vt.), the incoming chairman of the Senate Committee on Health, Education, Labor and Pensions, on Tuesday sent a letter to Moderna’s CEO urging the company to reconsider its decision and refrain from any price increase in light of the role the federal government has played in the development of the vaccine.
Sanders wrote: “The huge increase in price that you have proposed will have a significantly negative impact on the budgets of Medicaid, Medicare and other government programs that will continue covering the vaccine without cost-sharing for patients. Your decision will cost taxpayers billions of dollars. Your outrageous price boost will also increase private health insurance premiums. Perhaps most significantly, the quadrupling of prices will make the vaccine unavailable for many millions of uninsured and underinsured Americans who will not be able to afford it. How many of these Americans will die from COVID-19 as a result of limited access to these lifesaving vaccines? While nobody can predict the exact figure, the number could well be in the thousands. In the midst of a deadly pandemic, restricting access to this much needed vaccine is unconscionable.”
While the price hike planned by the company would make the lifesaving vaccine unaffordable for millions of Americans, estimates show that the cost of producing the vaccine is now as low as $2.85 per dose – 2.2% of what Moderna plans to charge. Meanwhile, over the last two years, Moderna made over $19 billion in profits off of the COVID-19 vaccine which they developed in partnership with scientists from the National Institutes of Health (NIH), a U.S. government agency that is funded by U.S. taxpayers. The federal government directly provided $1.7 billion to Moderna’s COVID-19 vaccine research and development, and guaranteed the company billions more in sales.
While nearly 1.1 million Americans died from COVID-19 in the last three years and over 100 million more have become ill, Moderna has used those profits to provide incredibly extravagant compensation packages to top officials at the company. In addition to CEO Bancel becoming a multi-billionaire as a direct result of Moderna’s COVID-19 vaccine, with Forbes currently estimating his wealth at $6.1 billion, Noubar Afeyan, Moderna’s chairman and co-founder, is currently worth $2.1 billion; Robert Langer, another co-founder of Moderna, is now worth $2.2 billion; and Timothy Springer, a founding investor in Moderna is now worth $2.6 billion.
“The purpose of the recent taxpayer investment in Moderna was to protect the health and lives of the American people, not to turn a handful of corporate executives and investors into multi-billionaires,” Sanders wrote to CEO Bancel. “As you know, the federal government, over the years, has supported Moderna every step of the way going back to 2013 when your company reportedly only had three employees. Now, in the midst of a continuing public health crisis and a growing federal deficit, is not the time for Moderna to be quadrupling the price of this vaccine. Now is not the time for unacceptable corporate greed.”
Read the full letter, here.
The text of the full letter is below.
Dear Mr. Bancel:
Yesterday, the Wall Street Journal reported that Moderna is considering more than quadrupling the price of its COVID vaccine after the supply that the U.S. government purchased, and distributed to Americans at no cost, is depleted. Instead of charging $26.36 per dose, the price that the government paid, Moderna has indicated that the commercial price will go up to as much as $130 per dose.
I have very deep concerns about that decision and the impact that it will have on the federal budget, the cost of private insurance and the unnecessary deaths that may occur because millions of Americans may not be able to afford the vaccine at the new cost.
I am writing to ask you to reconsider your decision and refrain from any price increases.
The huge increase in price that you have proposed will have a significantly negative impact on the budgets of Medicaid, Medicare and other government programs that will continue covering the vaccine without cost-sharing for patients. Your decision will cost taxpayers billions of dollars. Your outrageous price boost will also increase private health insurance premiums. Perhaps most significantly, the quadrupling of prices will make the vaccine unavailable for many millions of uninsured and underinsured Americans who will not be able to afford it. How many of these Americans will die from COVID-19 as a result of limited access to these lifesaving vaccines? While nobody can predict the exact figure, the number could well be in the thousands. In the midst of a deadly pandemic, restricting access to this much needed vaccine is unconscionable.
I find your decision particularly offensive given the fact that the vaccine was jointly developed in partnership with scientists from the National Institutes of Health (NIH), a U.S. government agency that is funded by U.S. taxpayers. The federal government directly provided $1.7 billion to your company for research and development, and guaranteed your company billions more in sales. In other words, you propose to make the vaccine unaffordable for the residents of this country who made the production of the vaccine possible. That is not acceptable.
Mr. Bancel: In the last two years, Moderna made over $19 billion in profits and used those profits to provide incredibly extravagant compensation packages to you and other top officials at your company. It is reported that you, yourself, became a multi-billionaire as a direct result of Moderna’s COVID vaccine with Forbes currently estimating your wealth at $6.1 billion.
Moreover, Noubar Afeyan, Moderna’s chairman and co-founder is currently worth $2.1 billion. Robert Langer, another co-founder of Moderna, is now worth $2.2 billion. Timothy Springer, a founding investor in Moderna is now worth $2.6 billion. Further, my understanding is that Moderna approved a $926 million golden parachute for you once you leave the company along with $160 million for Stephen Hoge (Moderna’s president) and $53 million for Juan Andres (Moderna’s chief technical officer).
I should point out that all of this corporate welfare and profiteering has taken place in the midst of the worst public health crisis in America in 100 years. In the last three years, nearly 1.1 million Americans died from COVID-19 and over 100 million more have become ill. It has also been estimated that the cost of producing the vaccine is now as low as $2.85 per dose – 2.2% of what Moderna has suggested charging to the public.
Let’s be clear: The purpose of the recent taxpayer investment in Moderna was to protect the health and lives of the American people, not to turn a handful of corporate executives and investors into multi-billionaires.
As you know, the federal government, over the years, has supported Moderna every step of the way going back to 2013 when your company reportedly only had three employees. Now, in the midst of a continuing public health crisis and a growing federal deficit, is not the time for Moderna to be quadrupling the price of this vaccine. Now is not the time for unacceptable corporate greed.
As the incoming Chairman of the Committee on Health, Education, Labor and Pensions in the United States Senate, I look forward to hearing your response in the very near future.
Sincerely,
Bernard Sanders
United States Senator
LATEST NEWS
'Health Over Wealth': New Bill Would Crack Down on Private Equity in US Healthcare
"We have a duty to protect patients from greedy corporations that are prioritizing their bottom line over patient care," Rep. Pramila Jayapal said.
Jul 25, 2024
Sen. Ed Markey and Rep. Pramila Jayapal on Thursday introduced legislation that would tighten the rules on private equity firms in the healthcare industry.
The Health Over Wealth Act would increase the powers of the U.S. Department of Health and Human Services to monitor and block private equity deals in the healthcare industry. It would require private equity firms buying healthcare providers to set up escrow accounts large enough to fund five years of operations, and would require more transparency on debt, executive pay, and other financial data, while prohibiting the "stripping" of assets.
"Private equity firms and greedy corporate executives are using the healthcare system as a piggybank," Markey (D-Mass.), chair of the Health, Education, Labor, and Pensions (HELP) Subcommittee on Primary Health and Retirement Security, said in a statement. "Putting profit over patients' results in substandard care, while health workers suffer, and communities are left to clean up the mess."
Jayapal (D-Wash.), chair of the Congressional Progressive Caucus, emphasized the toll that the private equity approach has on patients.
"Private equity firms buying up health care systems are simply bad news for patients, leading to worse health outcomes and higher bills," said Jayapal, who had previously introduced narrower legislation on private equity in healthcare. "We have a duty to protect patients from greedy corporations that are prioritizing their bottom line over patient care."
The bill's introduction came as the Senate HELP Committee on Thursday voted to launch an investigation into profit-first practices at Steward Health Care, a for-profit system formerly owned by a private equity firm and now in bankruptcy.
HELP voted to subpoena Steward CEO Ralph de la Torre, whom CBS News, which has conducted a series of investigations into the negative impact of private equity firms on community hospitals, described as "reclusive." De la Torre bought a 190-foot megayacht even as Steward's hospitals failed to pay their bills and keep supplies of life-saving equipment available, CBSreported.
Sen. Bernie Sanders (I-Vt.), HELP's chair and a cosponsor of the Health Over Wealth Act, called out de la Torre on social media on Thursday.
"Private equity vultures are making a fortune by taking over hospitals and leaving them in shambles," he wrote. "It's time for the CEO of Steward Health Care to get off his yacht and explain to Congress how he got rich while bankrupting the hospitals he manages."
The other cosponsors of the new bill include only a handful of progressive senators and representatives, but concern about the role of private equity in healthcare goes beyond progressive circles. The HELP Committee, which includes 10 Republicans, voted 20-1 to launch the investigation into Steward. And a Bloomberg columnist on Thursday published an opinion piece entitled "Steward Health is a case study in executive greed" and subtitled: "Why is populism on the rise? The gutting of a community hospital system illustrates why so many Americans feel betrayed by big business."
The negative impact of private equity's role in the healthcare industry is significant. Researchers at Harvard Medical School found an "alarming increase in patient complications" at private equity-owned hospitals in a study published in December in JAMA, a leading medical journal.
The new bill, which Markey previewed at a field hearing in Massachusetts in April, may be a long-shot for passage, given corporate influence in Congress. Axioscalled it "more aspirational than legislative" at the time.
Keep ReadingShow Less
Top Progressive Groups Launch Massive Grassroots Mobilization for Harris
"Our coalition was critical to defeating Trump in 2020," said one organizer. "We're ready to do it again in 2024."
Jul 25, 2024
Announcing their endorsement of U.S. Vice President Kamala Harris in the 2024 presidential election, three of the country's largest progressive organizations announced Thursday their plan to mobilize their hundreds of thousands of members to reach out to millions of swing state voters about Harris' fight for abortion rights, the climate, and democracy.
The Center for Popular Democracy Action (CPD), the Working Families Party (WFP), and People's Action pledged to knock on more than five million doors in states including Michigan, Wisconsin, Pennsylvania, Nevada, and Arizona, where they will tell voters about the key role Harris played in passing far-reaching climate action and jobs legislation in the Inflation Reduction Act, her strong support for abortion rights, and her commitment to delivering on President Joe Biden's housing agenda.
"Our coalition was critical to defeating [Republican presidential nominee Donald] Trump in 2020. We're ready to do it again in 2024," said Maurice Mitchell, national director of the Working Families Party. "This election is bigger than any one person. It’s about the kind of country we want to be and whether we will let the rights and freedoms our ancestors spent generations fighting for—the right to participate equally in our democracy, to organize our workplaces, and to control our own bodies—be taken away from us. Over the next four months, we'll be mobilizing voters in key states to elect Kamala Harris and build our ranks of WFP champions up and down the ballot."
The three groups' joint announcement of their endorsement of Harris comes four days after the vice president launched her campaign following Biden's decision to step aside under pressure from Democrats, due to concerns about his age, health, and sinking popularity among voters.
Since Sunday, the gun violence prevention group March for Our Lives has also announced its first-ever presidential endorsement of Harris, and the vice president has secured support from at least four national climate action groups.
"The Biden/Harris administration created real momentum toward an economy that puts working people before billionaires and a democracy that protects hard-won freedoms for everyone. We need to build on that momentum."
"We see an unprecedented surge of enthusiasm on the doors and from our members about Vice President Kamala Harris," said Marta Popadiak, movement governing director of People's Action. "The Biden/Harris administration created real momentum toward an economy that puts working people before billionaires and a democracy that protects hard-won freedoms for everyone. We need to build on that momentum."
People's Action has utilized "deep canvassing," an organizing tactic that eschews the brief, scripted conversations typical in traditional phone-banking and door-knocking operations in favor of longer discussions and open-ended questions aimed at developing an understanding of voters' beliefs, priorities, and values.
"We are mobilizing tens of thousands of volunteers to have deep conversations about why voting for Harris is a vote for a future in which our families and communities will thrive," said Popadiak.
People's Action expressed hope that a Harris presidency could initiate a shift in the Biden administration's "disastrous support" for Israel.
DaMareo Cooper and Analilia Mejia, co-executive directors of CPD, called on progressives to "rally behind Vice President Harris to build upon" the achievements of the Biden administration, including strengthening the U.S. economy following the coronavirus pandemic and canceling student debt for nearly one million Americans.
"Vice President Kamala Harris is a strong candidate who will beat Donald Trump, preserve our democracy, and drive our country forward," said Cooper and Meija.
The WFP noted that 95% of its members and delegates voted this week to endorse Harris as the Democratic nominee, and said the organization plans to knock on two million doors in key states including North Carolina and Georgia.
The organizing push is kicking off as Sen. JD Vance (D-Ohio), the Republican vice presidential nominee, faces blistering criticism for comments he made in 2021 in which he described Harris and other Democratic leaders as "childless cat ladies," and for his support for a nationwide abortion ban and call to track people who cross state lines to obtain abortion care. On Wednesday, the Harris campaign warned voters about Trump's promise to oil tycoons that he would ensure they can continue drilling for planet-heating fossil fuels if they gave him $1 billion in campaign donations.
Nic O'Rourke, a member of the Philadelphia City Council who represents the WFP, said that a Harris victory in November would ensure "the best conditions possible for activists as they join with and empower their communities" to fight for economic, racial, climate, and reproductive justice.
Unlike Harris', said O'Rourke, "the GOP's vision for America doesn't hold space for the righteous demands of the constituents I serve and the people I come from."
Keep ReadingShow Less
House GOP Accused of Injecting 'MAGA Project 2025 Agenda' Into Funding Bills
"We can see the fingerprints of Project 2025 across each of the majority's appropriations bills," said Democratic Rep. Rosa DeLauro.
Jul 25, 2024
A leading House Democrat on Wednesday accused her Republican colleagues of hijacking the government funding process to pursue a "MAGA Project 2025 Agenda" that aims to further roll back abortion rights, cut education programs, and attack workers and the planet.
"House Republicans are unable and unwilling to govern," said Rep. Rosa DeLauro (D-Conn.), the ranking member of the House Appropriations Committee. "House Democrats are at the table ready to negotiate. The quicker House Republicans realize their extremist agenda cannot become law, the quicker we can get down to the business of the American people."
"This year should have been easier than last. We began the 2025 process—weeks after successfully passing the final 2024 bills—with a top line in place, yet Republicans reneged on it," DeLauro continued. "They wrote partisan bills to further their Trump MAGA Project 2025 Agenda instead of working with Democrats to pass bills that could become law. At every turn, the Republicans are making abortion illegal, eliminating federal support for public education, undermining workers, and disarming America in the face of the climate crisis."
In recent weeks, House Republicans have put forth government funding bills for fiscal year 2025 that would slash the Education Department's budget by $11 billion, curb funding for the understaffed Social Security Administration, and assail climate agencies while boosting offshore drilling and other destructive practices—all of which is consistent with the Heritage Foundation-led Project 2025 agenda.
"Project 2025 advocates for climate and environmental arson. And we can see exactly where the majority has taken its cues from the climate catastrophe manifesto in this bill."
At least 140 people who worked in the administration of former President Donald Trump, the GOP's 2024 presidential nominee, helped craft Project 2025, according toCNN.
The House GOP's appropriations bills stand no chance of becoming law with Democrats controlling the Senate and the White House, but they have offered a preview of what the right-wing party is likely to do if it wins control of Congress and Trump secures another term in November.
Currently, Republicans "find themselves in a stalemate of their own doing," The Washington Postreported Thursday, "even after House SpeakerMike Johnson (R-La.) pledged to pass all 12 bills before their monthlong break from Washington in August." So far, the House has only passed five of the 12 bills.
On Tuesday, following hours of debate, House Republicans abruptly pulled a federal energy and water funding bill from the floor and the party's leadership decided to begin August recess a week early, starting on Thursday. Politicoreported that the withdrawn bill would have revoked the Energy Department's pause on new permit approvals for liquefied natural gas exports and "cut funding for efficiency and renewable energy programs."
House Republicans were able to pass funding legislation for the Interior Department and Environmental Protection Agency (EPA) on Wednesday. Just one Democrat, Rep. Vicente Gonzalez (D-Texas), voted for the bill, which is dead on arrival in the Senate.
As E&E Newsreported:
The legislation's $38.5 billion top line is about $72 million below the fiscal 2024 level. EPA's budget would shrink by $1.8 billion, with significant cuts to agency programs focused on science and technology, environmental justice, and chemical risk reviews. The Superfund cleanup program and the Diesel Emissions Reduction Program would see higher budget lines.
Interior funding would drop by $42 million, in part because of cuts to offices such as the Bureau of Land Management, the Bureau of Ocean Energy Management, and the National Park Service.
In a floor speech earlier this week opposing the legislation, DeLauro said that "rather than making sound investments to protect our air and water, preserve our National Parks, and ensure the environment we all share and live in remains clean and protected, the majority's bill benefits the most egregious polluters and climate science deniers, jeopardizes public health and safety, hinders our responses to the climate crisis, and endangers rural and low-income communities."
"This disastrous proposal did not come out of nowhere," she continued. "This is explicitly where the majority wants to take the country. Project 2025 is the Trump MAGA Republican agenda to take over the government and destroy our rights and freedoms. But it is not just a document on a website—we can see the fingerprints of Project 2025 across each of the majority's appropriations bills."
"In short, Project 2025 advocates for climate and environmental arson," DeLauro added. "And we can see exactly where the majority has taken its cues from the climate catastrophe manifesto in this bill."
Keep ReadingShow Less
Most Popular