People enrolled in the U.S. government's Medicare program can get over-the-counter COVID-19 tests for free starting early spring, the Centers for Medicare & Medicaid Services said on Thursday.

The Biden administration laid out plans last month that require private insurance companies to cover the cost of eight over-the-counter at-home tests per person each month, but said nothing about such coverage for Medicare beneficiaries.

Under the new coverage plan announced on Thursday, Medicare and Medicare Advantage beneficiaries will be able to access up to eight over-the-counter COVID-19 tests per month for free.

Medicare is a federal program that provides healthcare payment coverage for people aged 65 and older, and younger people with permanent kidney failure.

Evercore ISI analyst Michael Newshel sees the latest announcement as a 'positive' for those enrolled in Medicare plans, with the federal government covering costs directly.

"The program is also a potential small positive for pharmacies to sell the tests to Medicare beneficiaries, though supply is limited and the window may be short depending when the public health emergency ends."

The policy will only apply to over-the-counter tests approved or authorized by the U.S. Food and Drug Administration (FDA).