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News Release

PRESIDENT TO PROPOSE IMPROVEMENTS IN
CHILDHOOD VACCINE PROGRAMS

In his fiscal year 2004 budget request, President Bush will propose a series of improvements in the financing of childhood vaccines to meet three goals -- improve vaccine access, restore tetanus and diphtheria toxoid vaccines (Td, DT) to the Vaccine for Children (VFC) program, and build a national stockpile of childhood vaccine. The proposed improvements are part of HHS' fiscal year 2004 budget request and will expand on the department's efforts to improve access to health care for all Americans.

"The President's proposal will expand access to preventive health care for some of our most vulnerable citizens, our children," Secretary Thompson said. "Vaccines are one of the most successful tools we have available today to prevent an array of childhood diseases, so we must do all we can to ensure that our children can get the vaccines they need."

The proposed budget includes three important immunization initiatives.

First, the President will propose legislation that will expand the number of clinics that can provide VFC vaccines at no cost to underinsured children. The VFC program is managed by the Centers for Disease Control and Prevention (CDC), and it provides vaccines at no cost for children covered under Medicaid, for American Indian and Alaska Native children, for those with no insurance, and for underinsured children (those whose private insurance does not cover immunizations) seeking services at a community health center or other federally qualified health center. Currently, state and local public health clinics can only provide VFC vaccines to Medicaid or uninsured children but not to underinsured children.

The proposed legislation will allow state and local public health clinics to provide VFC vaccine to underinsured children at no cost. The legislation will make it easier for these underinsured children to get recommended vaccines for which they are already entitled by expanding access to health care. HHS estimates that the net cost of this reform is $50 million, which would cover the additional number of vaccinations expected as a result of increased access to immunization clinics.

"By letting underinsured children go to local public health clinics to get their VFC vaccines, we're making it easier than ever for these children to get their recommended shots," Secretary Thompson said.

The second key element of the President's budget request includes legislation to restore tetanus and diphtheria vaccines (Td and DT) to the VFC program. Since 1993 the VFC program has had a price cap on Td and DT vaccines. The cap has been so low that vendors have concluded it is not economically feasible to sell, and in 1998, Td and DT vaccines were removed from the VFC program. The President will propose legislation lifting these price caps and enable the VFC program to procure an estimated 2.5 million doses in FY 2004.

Finally, the President's budget calls for spending a total of an estimated $707 million between fiscal year 2003 and fiscal year 2006 to build up a national stockpile of childhood vaccines to ensure that shortages of these vaccines do not recur. HHS plans to have a vendor?managed, six?month supply of all childhood vaccines by 2006. HHS will begin these procurements later this year.

"All of these improvements will ensure that all VFC-eligible children have rapid access to all new and improved vaccines that become available," Secretary Thompson said.

The fiscal year 2004 budget includes a total of $1.6 billion for CDC's immunization programs.

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Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Last Revised: January 27, 2003