Laws: Cases and Codes : U.S. Code : Title 42 : Section 1396s


   
U.S. Code as of: 01/19/04
Section 1396s. Program for distribution of pediatric vaccines

    (a) Establishment of program
      (1) In general
        In order to meet the requirement of section 1396a(a)(62) of
      this title, each State shall establish a pediatric vaccine
      distribution program (which may be administered by the State
      department of health), consistent with the requirements of this
      section, under which - 
          (A) each vaccine-eligible child (as defined in subsection (b)
        of this section), in receiving an immunization with a qualified
        pediatric vaccine (as defined in subsection (h)(8) of this
        section) from a program-registered provider (as defined in
        subsection (c) of this section) on or after October 1, 1994, is
        entitled to receive the immunization without charge for the
        cost of such vaccine; and
          (B)(i) each program-registered provider who administers such
        a pediatric vaccine to a vaccine-eligible child on or after
        such date is entitled to receive such vaccine under the program
        without charge either for the vaccine or its delivery to the
        provider, and (ii) no vaccine is distributed under the program
        to a provider unless the provider is a program-registered
        provider.
      (2) Delivery of sufficient quantities of pediatric vaccines to
        immunize federally vaccine-eligible children
        (A) In general
          The Secretary shall provide under subsection (d) of this
        section for the purchase and delivery on behalf of each State
        meeting the requirement of section 1396a(a)(62) of this title
        (or, with respect to vaccines administered by an Indian tribe
        or tribal organization to Indian children, directly to the
        tribe or organization), without charge to the State, of such
        quantities of qualified pediatric vaccines as may be necessary
        for the administration of such vaccines to all federally
        vaccine-eligible children in the State on or after October 1,
        1994. This paragraph constitutes budget authority in advance of
        appropriations Acts, and represents the obligation of the
        Federal Government to provide for the purchase and delivery to
        States of the vaccines (or payment under subparagraph (C)) in
        accordance with this paragraph.
        (B) Special rules where vaccine is unavailable
          To the extent that a sufficient quantity of a vaccine is not
        available for purchase or delivery under subsection (d) of this
        section, the Secretary shall provide for the purchase and
        delivery of the available vaccine in accordance with priorities
        established by the Secretary, with priority given to federally
        vaccine-eligible children unless the Secretary finds there are
        other public health considerations.
        (C) Special rules where State is a manufacturer
          (i) Payments in lieu of vaccines
            In the case of a State that manufactures a pediatric
          vaccine the Secretary, instead of providing the vaccine on
          behalf of a State under subparagraph (A), shall provide to
          the State an amount equal to the value of the quantity of
          such vaccine that otherwise would have been delivered on
          behalf of the State under such subparagraph, but only if the
          State agrees that such payments will only be used for
          purposes relating to pediatric immunizations.
          (ii) Determination of value
            In determining the amount to pay a State under clause (i)
          with respect to a pediatric vaccine, the value of the
          quantity of vaccine shall be determined on the basis of the
          price in effect for the qualified pediatric vaccine under
          contracts under subsection (d) of this section. If more than
          1 such contract is in effect, the Secretary shall determine
          such value on the basis of the average of the prices under
          the contracts, after weighting each such price in relation to
          the quantity of vaccine under the contract involved.
    (b) Vaccine-eligible children
      For purposes of this section:
      (1) In general
        The term "vaccine-eligible child" means a child who is a
      federally vaccine-eligible child (as defined in paragraph (2)) or
      a State vaccine-eligible child (as defined in paragraph (3)).
      (2) Federally vaccine-eligible child
        (A) In general
          The term "federally vaccine-eligible child" means any of the
        following children:
            (i) A medicaid-eligible child.
            (ii) A child who is not insured.
            (iii) A child who (I) is administered a qualified pediatric
          vaccine by a federally-qualified health center (as defined in
          section 1396d(l)(2)(B) of this title) or a rural health
          clinic (as defined in section 1396d(l)(1) of this title), and
          (II) is not insured with respect to the vaccine.
            (iv) A child who is an Indian (as defined in subsection
          (h)(3) of this section).
        (B) Definitions
          In subparagraph (A):
            (i) The term "medicaid-eligible" means, with respect to a
          child, a child who is entitled to medical assistance under a
          state )1(! plan approved under this subchapter.

            (ii) The term "insured" means, with respect to a child - 
              (I) for purposes of subparagraph (A)(ii), that the child
            is enrolled under, and entitled to benefits under, a health
            insurance policy or plan, including a group health plan, a
            prepaid health plan, or an employee welfare benefit plan
            under the Employee Retirement Income Security Act of 1974
            [29 U.S.C. 1001 et seq.]; and
              (II) for purposes of subparagraph (A)(iii)(II) with
            respect to a pediatric vaccine, that the child is entitled
            to benefits under such a health insurance policy or plan,
            but such benefits are not available with respect to the
            cost of the pediatric vaccine.
      (3) State vaccine-eligible child
        The term "State vaccine-eligible child" means, with respect to
      a State and a qualified pediatric vaccine, a child who is within
      a class of children for which the State is purchasing the vaccine
      pursuant to subsection (d)(4)(B) of this section.
    (c) Program-registered providers
      (1) Defined
        In this section, except as otherwise provided, the term
      "program-registered provider" means, with respect to a State, any
      health care provider that - 
          (A) is licensed or otherwise authorized for administration of
        pediatric vaccines under the law of the State in which the
        administration occurs (subject to section 254f(e) of this
        title), without regard to whether or not the provider
        participates in the plan under this subchapter;
          (B) submits to the State an executed provider agreement
        described in paragraph (2); and
          (C) has not been found, by the Secretary or the State, to
        have violated such agreement or other applicable requirements
        established by the Secretary or the State consistent with this
        section.
      (2) Provider agreement
        A provider agreement for a provider under this paragraph is an
      agreement (in such form and manner as the Secretary may require)
      that the provider agrees as follows:
          (A)(i) Before administering a qualified pediatric vaccine to
        a child, the provider will ask a parent of the child such
        questions as are necessary to determine whether the child is a
        vaccine-eligible child, but the provider need not independently
        verify the answers to such questions.
          (ii) The provider will, for a period of time specified by the
        Secretary, maintain records of responses made to the questions.
          (iii) The provider will, upon request, make such records
        available to the State and to the Secretary, subject to section
        1396a(a)(7) of this title.
          (B)(i) Subject to clause (ii), the provider will comply with
        the schedule, regarding the appropriate periodicity, dosage,
        and contraindications applicable to pediatric vaccines, that is
        established and periodically reviewed and, as appropriate,
        revised by the advisory committee referred to in subsection (e)
        of this section, except in such cases as, in the provider's
        medical judgment subject to accepted medical practice, such
        compliance is medically inappropriate.
          (ii) The provider will provide pediatric vaccines in
        compliance with applicable State law, including any such law
        relating to any religious or other exemption.
          (C)(i) In administering a qualified pediatric vaccine to a
        vaccine-eligible child, the provider will not impose a charge
        for the cost of the vaccine. A program-registered provider is
        not required under this section to administer such a vaccine to
        each child for whom an immunization with the vaccine is sought
        from the provider.
          (ii) The provider may impose a fee for the administration of
        a qualified pediatric vaccine so long as the fee in the case of
        a federally vaccine-eligible child does not exceed the costs of
        such administration (as determined by the Secretary based on
        actual regional costs for such administration).
          (iii) The provider will not deny administration of a
        qualified pediatric vaccine to a vaccine-eligible child due to
        the inability of the child's parent to pay an administration
        fee.
      (3) Encouraging involvement of providers
        Each program under this section shall provide, in accordance
      with criteria established by the Secretary - 
          (A) for encouraging the following to become
        program-registered providers: private health care providers,
        the Indian Health Service, health care providers that receive
        funds under title V of the Indian Health Care Improvement Act
        [25 U.S.C. 1651 et seq.], and health programs or facilities
        operated by Indian tribes or tribal organizations; and
          (B) for identifying, with respect to any population of
        vaccine-eligible children a substantial portion of whose
        parents have a limited ability to speak the English language,
        those program-registered providers who are able to communicate
        with the population involved in the language and cultural
        context that is most appropriate.
      (4) State requirements
        Except as the Secretary may permit in order to prevent fraud
      and abuse and for related purposes, a State may not impose
      additional qualifications or conditions, in addition to the
      requirements of paragraph (1), in order that a provider qualify
      as a program-registered provider under this section. This
      subsection does not limit the exercise of State authority under
      section 1396n(b) of this title.
    (d) Negotiation of contracts with manufacturers
      (1) In general
        For the purpose of meeting obligations under this section, the
      Secretary shall negotiate and enter into contracts with
      manufacturers of pediatric vaccines consistent with the
      requirements of this subsection and, to the maximum extent
      practicable, consolidate such contracting with any other
      contracting activities conducted by the Secretary to purchase
      vaccines. The Secretary may enter into such contracts under which
      the Federal Government is obligated to make outlays, the budget
      authority for which is not provided for in advance in
      appropriations Acts, for the purchase and delivery of pediatric
      vaccines under subsection (a)(2)(A) of this section.
      (2) Authority to decline contracts
        The Secretary may decline to enter into such contracts and may
      modify or extend such contracts.
      (3) Contract price
        (A) In general
          The Secretary, in negotiating the prices at which pediatric
        vaccines will be purchased and delivered from a manufacturer
        under this subsection, shall take into account quantities of
        vaccines to be purchased by States under the option under
        paragraph (4)(B).
        (B) Negotiation of discounted price for current vaccines
          With respect to contracts entered into under this subsection
        for a pediatric vaccine for which the Centers for Disease
        Control and Prevention has a contract in effect under section
        247b(j)(1) of this title as of May 1, 1993, no price for the
        purchase of such vaccine for vaccine-eligible children shall be
        agreed to by the Secretary under this subsection if the price
        per dose of such vaccine (including delivery costs and any
        applicable excise tax established under section 4131 of the
        Internal Revenue Code of 1986) exceeds the price per dose for
        the vaccine in effect under such a contract as of such date
        increased by the percentage increase in the consumer price
        index for all urban consumers (all items; United States city
        average) from May 1993 to the month before the month in which
        such contract is entered into.
        (C) Negotiation of discounted price for new vaccines
          With respect to contracts entered into for a pediatric
        vaccine not described in subparagraph (B), the price for the
        purchase of such vaccine shall be a discounted price negotiated
        by the Secretary that may be established without regard to such
        subparagraph.
      (4) Quantities and terms of delivery
        Under such contracts - 
          (A) the Secretary shall provide, consistent with paragraph
        (6), for the purchase and delivery on behalf of States (and
        tribes and tribal organizations) of quantities of pediatric
        vaccines for federally vaccine-eligible children; and
          (B) each State, at the option of the State, shall be
        permitted to obtain additional quantities of pediatric vaccines
        (subject to amounts specified to the Secretary by the State in
        advance of negotiations) through purchasing the vaccines from
        the manufacturers at the applicable price negotiated by the
        Secretary consistent with paragraph (3), if (i) the State
        agrees that the vaccines will be used to provide immunizations
        only for children who are not federally vaccine-eligible
        children and (ii) the State provides to the Secretary such
        information (at a time and manner specified by the Secretary,
        including in advance of negotiations under paragraph (1)) as
        the Secretary determines to be necessary, to provide for
        quantities of pediatric vaccines for the State to purchase
        pursuant to this subsection and to determine annually the
        percentage of the vaccine market that is purchased pursuant to
        this section and this subparagraph.

      The Secretary shall enter into the initial negotiations under the
      preceding sentence not later than 180 days after August 10, 1993.
      (5) Charges for shipping and handling
        The Secretary may enter into a contract referred to in
      paragraph (1) only if the manufacturer involved agrees to submit
      to the Secretary such reports as the Secretary determines to be
      appropriate to assure compliance with the contract and if, with
      respect to a State program under this section that does not
      provide for the direct delivery of qualified pediatric vaccines,
      the manufacturer involved agrees that the manufacturer will
      provide for the delivery of the vaccines on behalf of the State
      in accordance with such program and will not impose any charges
      for the costs of such delivery (except to the extent such costs
      are provided for in the price established under paragraph (3)).
      (6) Assuring adequate supply of vaccines
        The Secretary, in negotiations under paragraph (1), shall
      negotiate for quantities of pediatric vaccines such that an
      adequate supply of such vaccines will be maintained to meet
      unanticipated needs for the vaccines. For purposes of the
      preceding sentence, the Secretary shall negotiate for a 6-month
      supply of vaccines in addition to the quantity that the Secretary
      otherwise would provide for in such negotiations. In carrying out
      this paragraph, the Secretary shall consider the potential for
      outbreaks of the diseases with respect to which the vaccines have
      been developed.
      (7) Multiple suppliers
        In the case of the pediatric vaccine involved, the Secretary
      shall, as appropriate, enter into a contract referred to in
      paragraph (1) with each manufacturer of the vaccine that meets
      the terms and conditions of the Secretary for an award of such a
      contract (including terms and conditions regarding safety and
      quality). With respect to multiple contracts entered into
      pursuant to this paragraph, the Secretary may have in effect
      different prices under each of such contracts and, with respect
      to a purchase by States pursuant to paragraph (4)(B), the
      Secretary shall determine which of such contracts will be
      applicable to the purchase.
    (e) Use of pediatric vaccines list
      The Secretary shall use, for the purpose of the purchase,
    delivery, and administration of pediatric vaccines under this
    section, the list established (and periodically reviewed and as
    appropriate revised) by the Advisory Committee on Immunization
    Practices (an advisory committee established by the Secretary,
    acting through the Director of the Centers for Disease Control and
    Prevention).
    (f) Requirement of State maintenance of immunization laws
      In the case of a State that had in effect as of May 1, 1993, a
    law that requires some or all health insurance policies or plans to
    provide some coverage with respect to a pediatric vaccine, a State
    program under this section does not comply with the requirements of
    this section unless the State certifies to the Secretary that the
    State has not modified or repealed such law in a manner that
    reduces the amount of coverage so required.
    (g) Termination
      This section, and the requirement of section 1396a(a)(62) of this
    title, shall cease to be in effect beginning on such date as may be
    prescribed in Federal law providing for immunization services for
    all children as part of a broad-based reform of the national health
    care system.
    (h) Definitions
      For purposes of this section:
        (1) The term "child" means an individual 18 years of age or
      younger.
        (2) The term "immunization" means an immunization against a
      vaccine-preventable disease.
        (3) The terms "Indian", "Indian tribe" and "tribal
      organization" have the meanings given such terms in section 4 of
      the Indian Health Care Improvement Act [25 U.S.C. 1603].
        (4) The term "manufacturer" means any corporation,
      organization, or institution, whether public or private
      (including Federal, State, and local departments, agencies, and
      instrumentalities), which manufactures, imports, processes, or
      distributes under its label any pediatric vaccine. The term
      "manufacture" means to manufacture, import, process, or
      distribute a vaccine.
        (5) The term "parent" includes, with respect to a child, an
      individual who qualifies as a legal guardian under State law.
        (6) The term "pediatric vaccine" means a vaccine included on
      the list under subsection (e) of this section.
        (7) The term "program-registered provider" has the meaning
      given such term in subsection (c) of this section.
        (8) The term "qualified pediatric vaccine" means a pediatric
      vaccine with respect to which a contract is in effect under
      subsection (d) of this section.
        (9) The terms "vaccine-eligible child", "federally
      vaccine-eligible child", and "State vaccine-eligible child" have
      the meaning given such terms in subsection (b) of this section.



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