Flu Vaccine Memorandum

1735 WordsOct 14, 20127 Pages
Flu Memorandum To: Representative Henry Waxman House Committee on Government Reform From: Senior Policy Analyst Date: 9/18/2012 Re: Influenza Shortage Distribution Recommendations This memo outlines ways to address the recurring shortages of the influenza vaccine that occurred in the United States between 2000 and 2004. There were two important contributing factors to these vaccine shortages. First, there has been a significant reduction over the past few decades in the number of companies that choose to manufacture the flu vaccine. Second, the government has taken a laissez-faire approach to managing the distribution of the vaccine, even in times of shortage. In order to fully accomplish our overarching goal – to…show more content…
Federal regulations would remain as they are, distribution would continue to be handled by the private sector, and people would have to get vaccinated using the current means available to them Alternative #2 – Provide Tax Breaks for Vaccine Manufacturers In order to incentivize the production of the flu vaccine by a greater number of manufacturers, the federal government could provide tax exemptions for manufacturing companies and proposals for federal/state grants for creation of new vaccine facilities. As there are more companies manufacturing flu vaccine, and in an efficient way, the risk of a flu vaccine supply shortage will decrease. Purported legislation will create an incentive for more pharmaceutical companies to embark upon establishing flu vaccine manufacturing facilities. If a company successful incorporates a flu vaccine facility, they are to receive a tax break with a rate determined by the quantity of vaccine they produce and by their delivery time of distribution. The more vaccine they produce and efficiently distribute, the higher the rate of tax exemptions they will receive. Government officials will be responsible for monitoring companies’ production as companies must give an account of their activities. Federal and state grants will be sent to private companies through request for proposals process. In providing subsidies in the form of tax breaks to vaccine
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