The Reagan administration soon willpropose a program of no-fault compensation for people injured
by childhood vaccines, a senior Treasury Department counsel
told the House select revenue measures subcommittee.
    "Within the next few weeks, we expect to propose a program
that will provide equitable, no-fault compensation to injured
persons, and predictable (and hence insurable) liabilities for
vaccine manufacturers," Dennis Ross, tax legislative counsel for
treasury, said in prepared testimony.
    The Vaccine Act was signed into law last year but did not
include a funding mechanism for its compensation program.
    Ross noted 50 to 75 children a year suffer serious
long-term or injuries from adverse reactions to vaccine for
diptheria, tetanus and whooping cough alone.
    But he said lawsuits were causing drug companies like Wyeth
Laboratories and Parke, Davis and Co to stop producing
childhood vaccines.
    The administration would not favor funding compensation
through an excise tax levied on the vaccine producers because
it would add to collection and auditing burdens, Ross said.
    He did not suggest a favored funding mechanism but said
a lump-sum trust fund for compensation might be preferable.
 Reuter
