[Congressional Record Volume 159, Number 87 (Tuesday, June 18, 2013)]
[House]
[Pages H3704-H3705]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1250
  ADDITION OF VACCINES AGAINST SEASONAL INFLUENZA TO LIST OF TAXABLE 
                                VACCINES

  Mr. GERLACH. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 475) to amend the Internal Revenue Code of 1986 to include 
vaccines against seasonal influenza within the definition of taxable 
vaccines.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 475

         Be it enacted by the Senate and House of Representatives 
     of the United States of America in Congress assembled,

     SECTION 1. ADDITION OF VACCINES AGAINST SEASONAL INFLUENZA TO 
                   LIST OF TAXABLE VACCINES.

         (a) In General.--Subparagraph (N) of section 4132(a)(1) 
     of the Internal Revenue Code of 1986 is amended by inserting 
     ``or any other vaccine against seasonal influenza'' before 
     the period.
         (b) Effective Date.--
         (1) Sales, etc.--The amendment made by this section shall 
     apply to sales and uses on or after the later of--
         (A) the first day of the first month which begins more 
     than 4 weeks after the date of the enactment of this Act, or
         (B) the date on which the Secretary of Health and Human 
     Services lists any vaccine against seasonal influenza (other 
     than any vaccine against seasonal influenza listed by the 
     Secretary prior to the date of the enactment of this Act) for 
     purposes of compensation for any vaccine-related injury or 
     death through the Vaccine Injury Compensation Trust Fund.
         (2) Deliveries.--For purposes of paragraph (1) and 
     section 4131 of the Internal Revenue Code of 1986, in the 
     case of sales on or before the effective date described in 
     such paragraph for which delivery is made after such date, 
     the delivery date shall be considered the sale date.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Pennsylvania (Mr. Gerlach) and the gentleman from Massachusetts (Mr. 
Neal) each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania.


                             General Leave

  Mr. GERLACH. I ask unanimous consent that all Members have 5 
legislative days in which to revise and extend their remarks and to 
include extraneous material on the subject of the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  Mr. GERLACH. Mr. Speaker, I yield myself such time as I may consume.
  I rise to urge my colleagues to support this bipartisan legislation 
that my colleague from Massachusetts (Mr. Neal) and I believe will help 
make the upcoming flu season less miserable for millions of Americans 
and avoid expensive hospital stays for those suffering with the flu.
  Last December, in the midst of a flu season in which the Centers for 
Disease Control and Prevention reported more than 12,000 people 
hospitalized with flu complications and 149 deaths among children under 
the age of 18, the Food and Drug Administration approved a new vaccine 
developed to fight the four-strain flu virus. But despite this 
development, it is imperative that we pass this legislation if we want 
to guarantee the most up-to-date four-strain flu vaccine is available 
to patients who need it.
  That's because under the current law, the Vaccine Injury Compensation 
Program--a no-fault system for compensating injuries or death caused by 
vaccines--covers flu vaccines that only protect against three viral 
strains.
  This bill would add vaccines that protect against four viral strains 
to the program and ensure that the most up-to-date and effective flu 
vaccines are available in time for the start of the flu season this 
fall. Without the liability protections of the compensation program, 
civil litigation from the use of this vaccine could explode and 
disincentivize vaccine producers from making this new medicine 
available.
  The Vaccine Injury Compensation Program was created in 1986 because 
at

[[Page H3705]]

the time fears of frivolous lawsuits that could wipe out businesses and 
bankrupt health care providers were causing vaccine manufacturers to 
leave the market, thereby leaving the general public without access to 
the best medicines available. So getting this new vaccine on the 
program list is essential.
  One other note: it's important to understand that this bill is not, 
as some media have inaccurately reported, a ``flu tax.'' This 
legislation does not create any new taxes. The bill before us does not 
raise tax rates. And there's absolutely no evidence that flu shots will 
cost one penny more if this bipartisan bill becomes law.
  In fact, the nonpartisan Joint Committee on Taxation analyzed the 
legislation and concluded there would be no new taxes or windfall to 
the Federal Government. That's because under the current law, 75 cents 
goes into the Vaccine Injury Compensation Program every time someone 
gets a flu shot or any number of other vaccines used to protect the 
public against all kinds of diseases.
  The truth is that every one of the estimated 135 million Americans 
who received a flu shot during this past flu season paid 75 cents into 
the fund, and that 75 cents charged today would also apply to this new 
vaccine. If you think 75 cents is an exorbitant amount to pay, consider 
that in my home State of Pennsylvania the average cost of a hospital 
stay ranges from $649 per day to $1,921 per day, according to the 
Kaiser Family Foundation. Without this legislation, taxpayers would be 
picking up the tab for flu-related hospitalizations for seniors and 
others enrolled in Medicaid and Medicare.
  The only way the Federal Government will collect more money next flu 
season is if a greater number of people voluntarily get flu shots. And 
most medical professionals will tell you getting a flu shot improves 
public health and lowers the risk of racking up expensive medical 
bills, especially for children and seniors.
  Vanderbilt University Medical Center, in collaboration with the 
Centers for Disease Control and Prevention, found that flu vaccine 
reduced the risk of flu-related hospitalization by 71.4 percent among 
adults of all ages and by 76.8 percent in study participants 50 years 
of age or older during the 2011-2012 flu season.
  In closing, I would ask my colleagues to support this legislation so 
that our doctors and hospitals can offer the public the very best and 
latest protection against constantly evolving strains of the flu virus 
this fall.
  Mr. Speaker, I reserve the balance of my time.
  Mr. NEAL. Mr. Speaker, I yield myself such time as I may consume.
  I rise in support of H.R. 475, a bill to update the excise tax on 
vaccines against seasonal influenza.
  Year after year, the flu poses a threat to millions of Americans, 
causing between 24,000 and 49,000 deaths and 226,000 hospitalizations 
each year. In fact, my home State of Massachusetts had over 28,000 
confirmed cases of flu this past season. The flu is particularly life-
threatening for our Nation's most vulnerable, the elderly and children. 
During the most recent flu season, there were 150 pediatric deaths 
across the Nation, and it is estimated that 90 percent of those 
children were not vaccinated.
  America must prepare for the next flu season. Public health and 
medical professionals, hospitals and vaccine manufacturers are moving 
quickly to prepare for the upcoming season by manufacturing new 
vaccines and educating the public about the importance of preventing 
the flu. One critical step in this preparation is to make certain that 
the newest and most effective flu vaccine will be available to the 
public.
  To do that, I introduced this legislation that we're acting upon 
today with my friend, Congressman Gerlach, to update our law to ensure 
access to new flu vaccines.
  The National Vaccine Injury Compensation Program was established in 
1986 to ensure an adequate supply of vaccines, stabilize vaccine costs, 
and establish and maintain an accessible and efficient forum for 
individuals found to be injured by certain vaccines to be compensated. 
These awards are funded by a 75 cent per dose excise tax on vaccines 
that are widely used and recommended by the Centers for Disease Control 
and Prevention for routine administration to children.
  The program requires congressional action from time to time because 
unless the excise tax is assessed on a particular vaccine, it is not 
covered by the program, and therefore, those injured can't be 
compensated under the program.
  Currently, the excise tax on seasonal influenza vaccine applies only 
to three-strain vaccines and excludes any non-three-strain vaccines. 
But for the flu season, three new advanced influenza vaccines will be 
available. These vaccines will provide broader protection against the 
flu because they can combat more strains of the virus. Therefore, we 
must amend the excise tax law to include the advanced flu vaccine.
  To ensure access to the new vaccine, our bill would apply the excise 
tax to all vaccines against seasonal influenza just as it has in the 
past.
  It is very important to note this will not increase the tax or change 
the Vaccine Injury Compensation Program. Let me repeat. It is very 
important to note that this will not increase the tax or change the 
Vaccine Injury Compensation Program.
  It's also important to note that this legislation does not affect in 
any way the FDA approval process. Vaccines for children, adolescents, 
and adults are approved and recommended through a rigorous, multiyear 
process. Vaccines must be approved by the FDA and then must also be 
evaluated and formally recommended by the Centers for Disease Control 
and Prevention before they are administered by health care providers or 
covered by health insurance programs.
  Before concluding, I'd like to note that this legislation has broad 
support, including AARP, Every Child by Two, Families Fighting Flu, 
Immunization Action Coalition, Infectious Diseases Society of America, 
and MassBio.
  Our legislation brings the excise tax into alignment with the most 
recent developments in medicine. The quick enactment of H.R. 475 is 
critical to making the newest seasonal flu vaccines available for the 
2013-2014 season.
  I urge the House to pass this legislation as quickly as possible, and 
I reserve the balance of my time.
  Mr. GERLACH. Mr. Speaker, in closing, I yield myself such time as I 
may consume.
  H.R. 475 is a great bipartisan, bicameral bill that will help protect 
our Nation's children and seniors from flu.
  I want to thank my friend from Massachusetts (Mr. Neal) for his 
cooperation and work on this legislation. I also would like to thank 
Dave Olander and the Ways and Means staff, Anne Dutton, my chief of 
staff, and especially Lori Prater, my Ways and Means counsel for their 
great work on this legislation. I also thank Senator Hatch and Senator 
Baucus on the Senate side for their work in moving this legislation in 
that Chamber.

                              {time}  1300

  With the 2013 flu season on the horizon, I urge my colleagues to 
support H.R. 475 to ensure that the public has access to the newest 
four-strain flu vaccine.
  I yield back the balance of my time.
  Mr. NEAL. Mr. Speaker, I thank Mr. Gerlach, and thanks to our very 
capable staffers for having assembled parts of the argument here, and 
point out that in the Senate, this was done by unanimous consent. 
That's an important consideration.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Pennsylvania (Mr. Gerlach) that the House suspend the 
rules and pass the bill, H.R. 475.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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