Childhood Vaccine Financing: Implications for States National Vaccine Advisory Committee November 29, 2005 Washington, DC Lance E. Rodewald, MD Lance E. Rodewald, MD Director, Immunization Services Director, Immunization Services Division Division National Immunization Program, CDC National Immunization Program, CDC
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Childhood Vaccine Financing: Implications for States National Vaccine Advisory Committee November 29, 2005 Washington, DC Lance E. Rodewald, MD Director,
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Childhood Vaccine Financing: Implications for States
Childhood Vaccine Financing: Implications for States
National Vaccine Advisory CommitteeNovember 29, 2005
By statute: ACIP establishes, maintains, and revises By statute: ACIP establishes, maintains, and revises the VFC vaccine listthe VFC vaccine list
According to Congress, with regard to VFC According to Congress, with regard to VFC resolutions, ACIP should conduct its work resolutions, ACIP should conduct its work objectivelyobjectively– Only concerns: public health and medicineOnly concerns: public health and medicine– Work separated from budget considerationsWork separated from budget considerations– Only Secretary can question validity of ACIP Only Secretary can question validity of ACIP
recommendation, and propose changes to Congressrecommendation, and propose changes to Congress
Funding for vaccines in the ACIP list is mandatory, Funding for vaccines in the ACIP list is mandatory, implying that ACIP can raise vaccine funding for implying that ACIP can raise vaccine funding for about 45% of U.S. children by a voteabout 45% of U.S. children by a vote
Section 3178%
Vaccines for Children
40%State 7%
Private Sector45%
Childhood Vaccine Doses Childhood Vaccine Doses Distributed by Funding SourceDistributed by Funding Source
Calendar Year 2004Calendar Year 2004
Source: Biologics Surveillance Data 2004
Number of Children and Adolescents Number of Children and Adolescents Who Could Potentially Receive Who Could Potentially Receive
Full Series with 317 fundsFull Series with 317 funds
364378441
522548
515
638
747
0
100
200
300
400
500
600
700
800
1999 2000 2001 2002 2003 2004 2005est.
2006est.
Nu
mber
of
Ch
ildre
n(T
hou
san
ds)
2005 estimate includes the cost to vaccinate one adolescent with one dose of Meningococcal and one dose of Td.
2004 and 2005 reflect new budget lines 1) Business Services Support and 2) Public Health Improvement & Leadership — which were created to the show CDC indirect cost assessments to programs
Td was not included in the cost of the full series 1999-2004. States negotiated their own contracts because there was no federal contract for this vaccine.
TdaP is expected to be licensed and recommended in FY2006; CDC estimates the new vaccine may be used 50% of the time in adolescents and the current Td vaccine used the remaining 50% of the time.
Pneumococcal Conjugate Vaccine (PCV) Pneumococcal Conjugate Vaccine (PCV) Two-Tier Policies, by State, Two-Tier Policies, by State,
United States*United States*
States with a two-tiered PCV policy States with a two-tiered PCV policy (19 states are not implementing PCV with 317 funds)(19 states are not implementing PCV with 317 funds)
States without a two-tiered PCV policyStates without a two-tiered PCV policy
D.C.D.C.
*As of February 2003*As of February 2003
If all States implemented PCV and flu, the 2004 funding shortfall would be $55 Million
Unresolved Problem of Unresolved Problem of UnderinsuredUnderinsured
Public health safety net is missing in Public health safety net is missing in many locationsmany locations
Underinsured crisis likely to worsenUnderinsured crisis likely to worsen
Ethical tension for states and providersEthical tension for states and providers
ACIP Vote ImplicationsACIP Vote Implications
VFC entitlement must be fulfilledVFC entitlement must be fulfilled
States’ options for underinsuredStates’ options for underinsured– Raise funding consistent with purchase policyRaise funding consistent with purchase policy– Selectively implement a vaccineSelectively implement a vaccine
Providers’ options for underinsuredProviders’ options for underinsured– Ask parents to payAsk parents to pay– Refer patients out, if possibleRefer patients out, if possible– Take a financial loss?Take a financial loss?– Stop vaccinating?Stop vaccinating?
New Vaccines and Vaccines on New Vaccines and Vaccines on the Horizonthe Horizon
New Vaccine/Indication New Vaccine/Indication TimeframeTimeframe
Cost sharing the VFC administration feeCost sharing the VFC administration fee
Actual vs Allowable State Medicaid Actual vs Allowable State Medicaid VFC Vaccine Administration Fees VFC Vaccine Administration Fees
for CY2000for CY2000
$0.00
$5.00
$10.00
$15.00
$20.00
Adm Fee Fee Cap
*
*Universal purchase states are allowedto develop their own maximum fees.
*
Cost to Administer Three Cost to Administer Three VaccinesVaccines
0
5
10
15
20
25
DTaP IPV MMR
$
Fontanesi J et al. The Price of Prevention: Cost of Recommended Activities to ImproveImmunization. Am J Prev Med 2003; 1:41-45.
Medicaid average admin fee2000
NVAC Leadership in Vaccine NVAC Leadership in Vaccine FinancingFinancing
Measles White PaperMeasles White Paper
Strategies to Sustain SuccessStrategies to Sustain Success
Review of IOM report, “Calling the Shots”Review of IOM report, “Calling the Shots”
Review of IOM “Financing Vaccines for the Review of IOM “Financing Vaccines for the 2121stst Century” Century”
Recommendations for financing vaccinesRecommendations for financing vaccines
ConclusionsConclusions
Childhood vaccine financing has not changed Childhood vaccine financing has not changed qualitatively since prior to the IOM vaccine financing qualitatively since prior to the IOM vaccine financing studystudy
VFC entitlement is a major benefit to the health of VFC entitlement is a major benefit to the health of children, but its underinsured gap leaves the safety children, but its underinsured gap leaves the safety net vulnerable, especially for new vaccinesnet vulnerable, especially for new vaccines
Administration fees vary substantially, and in many Administration fees vary substantially, and in many places do not support the service rendered by the places do not support the service rendered by the providerprovider
States face very difficult choicesStates face very difficult choices
How Can NVAC Help?How Can NVAC Help?
Evaluate the vaccine financing crisis Evaluate the vaccine financing crisis through testimony and review of the through testimony and review of the evidenceevidence
Develop and publish strategic plan with Develop and publish strategic plan with key stakeholders to improve vaccine key stakeholders to improve vaccine financingfinancing
Monitor and guide implementation of Monitor and guide implementation of strategic planstrategic plan
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