exploring a vaccine surcharge or sales tax for registry funding l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Exploring a Vaccine Surcharge or Sales Tax for Registry Funding PowerPoint Presentation
Download Presentation
Exploring a Vaccine Surcharge or Sales Tax for Registry Funding

Loading in 2 Seconds...

play fullscreen
1 / 15

Exploring a Vaccine Surcharge or Sales Tax for Registry Funding - PowerPoint PPT Presentation


  • 100 Views
  • Uploaded on

Exploring a Vaccine Surcharge or Sales Tax for Registry Funding. Bill Brand, M.P.H. Minnesota Department of Health Immunization Registry Conference October 27, 2003. Objectives.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Exploring a Vaccine Surcharge or Sales Tax for Registry Funding


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
exploring a vaccine surcharge or sales tax for registry funding

Exploring a Vaccine Surcharge or Sales Tax for Registry Funding

Bill Brand, M.P.H.

Minnesota Department of Health

Immunization Registry Conference

October 27, 2003

objectives
Objectives
  • To facilitate a discussion on the advantages and challenges of enacting a vaccine surcharge or sales tax to fund registries.
  • To outline the cost analysis Minnesota conducted
how would a surcharge work
How would a surcharge work?
  • Surcharge would be collected by drug companies with each privately-purchased order.
    • Surcharge would be applied at either the antigen or the vaccine level.
  • Sent to state revenue agency; forwarded to health department
how would a sales tax work
How would a sales tax work?
  • A fixed percentage is added to the total purchase price of each order.
  • Based on the total cost of vaccines, not the number of antigens or vaccines.
  • Collected by drug companies and sent to state revenue.
why a registry tax
Why a registry tax?
  • Funding would be broad based
  • Total amount raised increases as new vaccines are added
  • The funding would be stable and predictable
  • The system would be relatively easy to administer once it was set up.
so why not have a tax
So why NOT have a tax?
  • A complex system to get enacted and implemented
  • “No new taxes”
  • Vaccine revenue for providers would decrease unless plans reimbursed at higher rates
  • Cost of health care goes up marginally
    • Although registries save money
  • New vaccines tend to be expensive, so a sales tax would raise funds disproportionate their added registry costs
calculating a surcharge
Calculating a surcharge
  • First decision: Based on antigen or vaccine/dose?
  • Antigen: More complex; ensures stable funding as more combo vaccines are approved
  • Vaccine: Simpler; harder to forecast how much will be raised
calculating a surcharge cont
Calculating a surcharge (cont.)
  • Need to base it on the number of shots given over a life time.
    • No way to differentiate for most vaccines which age group they will be given to.
antigen surcharge example
Antigen surcharge example

* For primary series and adolescent shots

sales tax example
Sales tax example

* For primary series and adolescent shots

issues to consider
Issues to consider
  • How will the medical community react?
  • How will health plans react?
  • Will the plans reimburse clinics for the added vaccine costs?
  • How supportive will your legislature and Governor be?
  • Do you use the funds only for registries or for immunizations more broadly?
conclusions
Conclusions
  • A vaccine surcharge or sales tax could provide very stable and predictable funding for registries.
  • Setting the program up would be complex and challenging, but once up, would be relatively simple to administer.
  • The sales tax is the simplest approach but may be the hardest to enact in the current political environment.
something to consider
Something to consider…

If one state passed such a tax, it would likely begin a domino effect in others. The drug companies would then most probably advocate to have a single nation-wide system enacted, administered by CDC. Those funds could then be distributed to states/projects on a per capita formula.

thank you
Thank you!

Bill Brand, M.P.H.

Registry Policy & Planning Coordinator

Minnesota Department of Health

(612) 676-5144

bill.brand@state.mn.us