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51 351 CC                               

1998                                 

Union Calendar No. 461         
105th  Congress, 2d  Session                    
House Report 105 820 


HEPATITIS C: SILENT EPIDEMIC, MUTE PUBLIC HEALTH RESPONSE       
SEVENTH REPORT
by the COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT     
           

October 15, 1998.--Committed to the Committee of the Whole House on  
 the State of the Union and ordered to be printed    

COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT             
DAN BURTON, Indiana,  Chairman                                         



          BENJAMIN A. GILMAN, New York                             HENRY A. WAXMAN, California

          J. DENNIS HASTERT, Illinois                               TOM LANTOS, California
          CONSTANCE A. MORELLA, Maryland                 ROBERT E. WISE,  Jr.,  West Virginia
          CHRISTOPHER SHAYS, Connecticut                   MAJOR R. OWENS, New York
          CHRISTOPHER COX, California                            EDOLPHUS TOWNS, New York
          ILEANA ROS-LEHTINEN, Florida                          PAUL E. KANJORSKI, Pennsylvania
          JOHN M.  McHUGH,  New York                            GARY A. CONDIT, California
          STEPHEN HORN, California                                 CAROLYN B. MALONEY, New York
          JOHN L. MICA, Florida                                        THOMAS M. BARRETT, Wisconsin
          THOMAS M. DAVIS, Virginia                                ELEANOR HOLMES NORTON, Washington, DC
          DAVID M.  McINTOSH,  Indiana                             CHAKA FATTAH, Pennsylvania
          MARK E. SOUDER, Indiana                                  ELIJAH E. CUMMINGS, Maryland
          JOE SCARBOROUGH, Florida                                 DENNIS J. KUCINICH, Ohio
          JOHN B. SHADEGG, Arizona                                 ROD R. BLAGOJEVICH, Illinois
          STEVEN C.  LaTOURETTE,  Ohio                             DANNY K. DAVIS, Illinois
          MARSHALL ``MARK'' SANFORD, South Carolina                JOHN F. TIERNEY, Massachusetts
          JOHN E. SUNUNU, New Hampshire                            JIM TURNER, Texas
          PETE SESSIONS, Texas                                     THOMAS H. ALLEN, Maine
          MICHAEL PAPPAS, New Jersey                               HAROLD E. FORD,  Jr.,  Tennessee
          VINCE SNOWBARGER, Kansas                                       ------
          BOB BARR, Georgia                                        BERNARD SANDERS, Vermont (Independent)
          DAN MILLER, Florida                                     
          RON LEWIS, Kentucky                                     

          Kevin Binger,  Staff Director                                         

          Daniel R. Moll,  Deputy Staff Director                                

          David A. Kass,  Parliamentarian and Deputy Counsel                    

          Lisa Smith Arafune,  Deputy Chief Clerk                               

          Phil Schiliro,  Minority Staff Director                               

                              SUBCOMMITTEE ON HUMAN RESOURCES                    

          CHRISTOPHER SHAYS, Connecticut,  Chairman                              
          VINCE SNOWBARGER, Kansas                   EDOLPHUS TOWNS, New York
          BENJAMIN A. GILMAN, New York               THOMAS H. ALLEN, Maine
          DAVID M.  McINTOSH,  Indiana                TOM LANTOS, California
          MARK E. SOUDER, Indiana                       BERNARD SANDERS, Vermont (Ind.)
          MICHAEL PAPPAS, New Jersey                 THOMAS M. BARRETT, Wisconsin
          ------ ------                                       DENNIS J. KUCINICH, Ohio

                                         EX OFFICIO                              

          DAN BURTON,  Indiana           HENRY A. WAXMAN, California

          Lawrence J. Halloran,  Staff Director and Counsel                     

          Anne Marie Finley,  Professional Staff Member                         

          Jesse S. Bushman,  Clerk                                              

                                            (II)                           

                                    LETTER OF TRANSMITTAL               

       House of Representatives,                                              

       Washington, DC, October 15, 1998.                                      



          Hon.  Newt Gingrich,           Speaker of the House of Representatives,

       Washington, DC.                                                        

       Dear Mr. Speaker : By direction of the Committee on Government     
   Reform and Oversight, I submit herewith the committee's seventh report 
   to the 105th Congress. The committee's report is based on a study      
   conducted by its Subcommittee on Human Resources.                      
        Dan Burton,                                                            

        Chairman.                                                              

            (iii)                                                                  

                                                                        


 ?                                                                      

                            C O N T E N T S                            
  I.     Summary                                                          1
  II.    Background                                                       2
  III.   Findings                                                         4
  IV.    Recommendations                                                  13

                                                                        


     Union Calendar No. 461                                                 

105 th Congress                                                        

Report
HOUSE OF REPRESENTATIVES           
2d Session                        
105 820                                                                


       HEPATITIS C: SILENT EPIDEMIC, MUTE PUBLIC HEALTH RESPONSE              


   October 15, 1998.--Committed to the Committee of the Whole House on  
 the State of the Union and ordered to be printed                       
                                                                        

  Mr. Burton, from the Committee on Government Reform and Oversight,    
 submitted the following                                                
 SEVENTH REPORT                                                         


      On October 8, 1998, the Committee on Government Reform and Oversight
   approved and adopted a report entitled, ``Hepatitis C: Silent Epidemic,
   Mute Public Health Response.'' The chairman was directed to transmit a 
   copy to the Speaker of the House.                                      
                                         I. SUMMARY                              

      Called ``the silent epidemic,'' the spread of Hepatitis C Virus [HCV]
   infection has evoked a Federal public health response almost as mute.  
      Hepatitis C poses a daunting challenge to public health. Chronic    
   infection can linger without symptoms for more than 20 years, then     
   produce profound health consequences, including liver failure and      
   cancer. There is no preventive vaccine or universally effective        
   treatment. Up to 10,000 will die this year from the disease. That number
   could triple in the next two decades, according to the Centers for     
   Disease Control and Prevention [CDC].\1\                               
                                                                          

   \1\NIH Consensus Development Statement ``Management of Hepatitis C,''  
   Mar. 24 26, 1997 (in subcommittee files).                              
      HCV has now spread to an estimated 4 million Americans. Eighty-five 
   percent of those infected develop chronic liver disease and about 10 to
   20 percent develop cirrhosis of the liver about 20 years after the onset
   of infection.\2\                                                       
    HHS estimates the total societal cost of Hepatitis C at more than $600
   million per year.\3\                                                   
    More than a million persons received HCV infected blood and blood     
   products.\4\                                                           
    Most are unaware of their infection.                                  

   \2\ Public Health 2000: Hepatitis C--The Silent Epidemic, 105th Cong., 
   2d sess., p. 6 (subcommittee hearing, Mar. 5, 1998) (prepared statement
   of Surgeon General David Satcher).                                     
   \3\Ibid, p. 6.                                                         

   \4\Ibid, p. 6.                                                         

      They need to be told. They need to be tested. Many will need        
   treatment, and many will need to learn how to prevent further spread of
   the disease to their spouses, sexual partners, and household members.  
      But HHS plans to ``look back'' for people infected through blood have
   sputtered, and little has been accomplished. Disease reporting and     
   surveillance is uneven. Research into HCV is uncoordinated. Education on
   prevention and treatment has been undertaken primarily by private sector
   organizations.                                                         
      Unless confronted more boldly, more directly, and more loudly by the
   Department of Health and Human Services [HHS], the threat posed by     
   Hepatitis C will only grow more ominous. As we learned when the Human  
   Immunodeficiency Virus [HIV] breached our public health defenses,      
   scientific uncertainty, cultural biases and bureaucratic inertia can   
   thwart the actions needed to repel an elusive viral invader.           
      In a 1996 oversight report, this Committee recommended HHS take steps
   to notify the 300,000 or more Americans known to have been infected with
   Hepatitis C through blood before 1990.\5\                              
    To date, that has not been done. The time for pondering the           
   appropriate, pro-active public health response to Hepatitis C is past. 
   The time for aggressive implementation is at hand.                     
   \5\ Protecting the Nation's Blood Supply from Infectious Agents: The   
   Need for New Standards to Meet New Threats, 10th Report by the Committee
   on Government Reform and Oversight, Aug. 2, 1996.                      
           Findings in brief:                                                     

      1. The Federal response to the Hepatitis C epidemic has lacked focus
   and energy.                                                            
   2. The proposed HCV ``look back'' is too limited.                      

      3. Private organizations, with some Federal assistance, have taken  
   the lead in HCV public education efforts.                              
           Recommendations in brief:                                              

      1. a. The Secretary of Health and Human Services should take the lead
   in coordinating the Federal public health response to the Hepatitis C  
   epidemic, including implementation of a research plan.                 
      b. The Department of Defense should test recruits, active duty      
   personnel and those about to be discharged for Hepatitis C infection.  
      c. The Department of Veterans Affairs should conduct additional     
   studies of the prevalence of HCV in veterans populations.              
   2. The Hepatitis C look back plan should be expanded.                  

      3. Federal educational campaigns on HCV infection should be launched
   immediately.                                                           
                                       II. BACKGROUND                            

      The Centers for Disease Control [CDC] estimate that at least 4      
   million Americans are infected with the Hepatitis C Virus [HCV], which 
   was formerly known as ``non-A, non-B hepatitis.'' HCV is a liver disease
   agent found in the blood of infected persons. Infection may occur      
   through intranasal exposure (cocaine use), injection of street drugs,  
   accidental needle stick injuries to health care workers, transfusion of
   infected blood and plasma products, transplantation of solid organs    
   (such as kidney, liver, heart), kidney dialysis, maternal to fetal     
   transmission and through exchange of bodily fluids.                    
      Secondary transmission to spouses and maternal transmission to      
   fetuses in utero has been documented, but the extent of transmissibility
   is not known. In addition, more than 40 percent of infected persons do 
   not have histories of risk factors, suggesting a possible unknown route
   of transmission. There is no vaccine to prevent the disease and NIH    
   estimates that vaccine development will take at least a decade.        
      CDC estimates that 28,000 180,000 new HCV infections occur each year.
   Only 25 30 percent of infections are symptomatic. Many HCV infected    
   individuals are not aware of their infection until signs of liver      
   failure appear, often decades after infection. This has prompted some to
   call HCV, the ``silent epidemic.''                                     
      Hepatitis C is responsible for an estimated 8,000 10,000 deaths     
   annually in the United States. According to current estimates, more    
   people will die of HCV in the year 2000 than will die of AIDS.         
      An estimated 1 million Americans received blood from a donor who    
   subsequently tested positive for Hepatitis C.\6\                       
    Of these people, CDC estimates 700,000 may have tested positive with  
   the first generation anti-HV test which was introduced in 1990. The    
   first generation test had a higher false positive rate than later      
   generation tests and there was little confirmatory testing performed in
   this group of tested donors.\7\                                        
    A more precise ``second generation'' HCV screening test became        
   available in 1992.                                                     
   \6\Written communication from Centers for Disease Control to           
   subcommittee staff, Sept. 15, 1998 (in subcommittee files).            
   \7\Ibid.                                                               

   CDC concedes,                                                          


                     it is not possible to estimate the TOTAL number of
          living persons with transfusion associated HCV infection from
          the look back estimates, since these estimates do not extend 
          before 1990. CDC has estimated that approximately 300,000 of 
          the 4 million living anti-HCV positive persons acquired their
          infection from blood transfusion.                            
                     CDC arrived at this estimate using the National   
          Health and Nutrition Examination Survey [NHANES] data and    
          Sentinel Counties surveillance data concerning the proportion
          of HCV infections that were transfusion associated at various
          time periods.\8\                                             
                                                                          

   \8\Ibid.                                                               


      Treatment of HCV is usually with interferon and approximately 12 15 
   percent of individuals will clear the infection with the first         
   treatment. There is some evidence that individuals with HCV who do not 
   respond to the first treatment may be able to clear the infection with a
   second round of treatment, or with higher dosages of interferon or     
   combinations of drugs. Many infected persons do not develop symptoms.  
   Others, however, will develop severe cirrhosis of the liver, which will
   require a liver transplant or be fatal. Cirrhosis caused by HCV        
   infection is the primary reason for liver transplants in the United    
   States.                                                                
      In the 104th Congress, the Committee issued a report entitled,      
   ``Protecting the Nation's Blood Supply from Infectious Agents: The Need
   for New Standards to Meet New Threats,'' (House Report 104 746) which  
   contained several recommendations including one to require the         
   Department of Health and Human Services to ensure that the estimated   
   300,000 living recipients of blood and blood products who may have been
   infected with Hepatitis C Virus before 1990 are notified of their      
   potential infection so they might seek diagnosis and treatment.        
                                       III. FINDINGS                             

    1. The Federal response to the Hepatitis C epidemic has     
      lacked energy and focus                                                
      Since 1989, when the Hepatitis C Virus [HCV] was first unmasked,    
   federal public health agencies have often pondered, but never          
   implemented, a comprehensive response to this insidious infectious     
   agent.                                                                 
      The FDA's Blood Products Advisory Committee [BPAC] considered whether
   patients who received the HCV infected units should be notified of their
   exposure (a.k.a. ``look back'') on all of the following dates: October 
   31, 1989; January 17 18, 1991; September 26 27, 1991; March 12 13, 1992;
   March 25 26, 1993; December 2 3, 1993; and December 15 16, 1994.       
   However, the BPAC did not take action on this issue, even though       
   treatment options were available to infected persons if they had been  
   told of their infection.                                               
   The FDA's July 19, 1996, Guidance Memorandum\9\recommended quarantine and disposition of certain prior collections of blood and blood components from donors who tested repeatedly reactive to HCV antibodies. At that time, FDA did not recommend notification of    
   recipients of blood from donors who subsequently test positive for     
   anti-HCV, because ``no clear consensus on the public health benefit of 
   such action had emerged.''\10\ 
    
                                        
                                                                          

   \9\July 19, 1996, memorandum from Director, Center for Biologics       
   Evaluation and Research to All Registered Blood and Plasma             
   Establishments (in subcommittee files).                                
   \10\``Guidance for Industry: Supplemental Testing and the Notification 
   of Consignees of Donor Test Results for Antibody to Hepatitis C Virus  
   (Anti-HCV),'' background section, Mar. 20, 1998.                       
      In testimony before the Human Resources [HR] Subcommittee on October
   12, 1995, HHS Secretary Donna Shalala committed that the HCV look back 
   notification would be the first issue considered by the new HHS Advisory
   Committee on Blood Safety and Availability [NACBSA]. NACBSA reviewed the
   notification issue at its meetings 2 years later, in April and August  
   1997.                                                                  
      At the August 12, 1997, meeting, a look back was recommended by the 
   Committee for individuals who had received blood which had tested      
   positive for HCV on the second generation screening test implemented in
   1992. Some members of the NACBSA\11\                                   
    wanted a more extensive look back, feeling that a less comprehensive  
   approach was unethical because many infected individuals would not be  
   contacted by a look back triggered only by HCV donors detected after   
   1992.\12\                                                              
    CDC did not provide an estimate of how many of the 1.1 million        
   Americans who received potentially HCV-infected blood did so before    
   1992. However, CDC concludes the possibility of transmission was much  
   higher before the 1992 introduction of more effective screening and    
   testing.                                                               
   \11\Dr. John Penner, Dr. Arthur Caplan, Dr. Dana Kuhn, Dr. Ronald      
   Gilcher, and Ms. Tricia O'Connor.                                      
   \12\Aug. 31, 1997, letter from NACBSA member John Penner M.D., to NACBSA
   Chairman Arthur Caplan, Ph.D., (in subcommittee files).                
      The NACBSA recommendation was reviewed by the Public Health Service 
   [PHS] operating divisions (FDA, CDC, NIH, et cetera) prior to its      
   presentation to the Blood Safety Committee on November 4, 1997, and    
   December 3, 1997. The recommendation was communicated to Secretary     
   Shalala on December 22, 1997.                                          
      The recommendation was discussed with HHS Deputy Secretary Kevin    
   Thurm on January 13, 1998, and with the Secretary on January 22, 1998. 
   Secretary Shalala communicated her decision to accept the recommendation
   to NACBSA Chairman Arthur Caplan on January 28, 1998.                  
      On March 5, 1998, HHS Surgeon General David Satcher announced the HCV
   look back and education plan in testimony at a Human Resources [HR]    
   Subcommittee hearing. He testified that HHS has ``established a        
   comprehensive plan to address this significant public health problem. It
   is our intention to reach effectively as many people at risk as we     
   can.''\13\                                                             
                                                                          

   \13\Testimony of Dr. David Satcher, HR Subcommittee hearing, Mar. 5,   
   1998, p. 7.                                                            
      On February 11, 1998, Dr. John Eisenberg, HHS Acting Assistant      
   Secretary for Health and acting chairman of the Blood Safety Committee,
   requested specific responses with time lines from the FDA, CDC, and the
   Agency for Health Care Policy and Research [AHCPR] on the status of the
   agencies' HCV notification and education plans.                        
      The FDA response was the publication of a Guidance to Industry on   
   March 20, 1998, in the Federal Register. \14\                          
    The guidance recommended that blood banks identify past donors of blood
   who have tested positive for HCV antibodies on the 1992 second         
   generation test and notify the hospital blood banks and transfusion    
   services that units taken from those donors may be infected. The       
   hospital should then notify either at-risk patients or their doctors   
   directly by September 20, 1998.                                        
   \14\``Guidance for Industry: Supplemental Testing and the Notification 
   of Consignees of Donor Test Results for Antibody to Hepatitis C Virus  
   (Anti-HCV),'' Federal Register, Mar. 20, 1998.                         
      The CDC and AHCPR responses were received by HHS on April 10, 1998, 
   and further discussed at the June 18, 1998 Blood Safety Committee      
   meeting. HHS pledged to undertake additional public education campaigns
   to notify additional persons who may have received HCV-infected        
   transfusions. HHS pledged to evaluate the success of the direct        
   notification efforts and committed to take additional, unspecified steps
   to identify other at risk groups for HCV infection.                    
      Surgeon General Satcher, who had been asked by the Secretary to lead
   the notification and look back efforts,\15\                            
    stated in a letter to Chairman Shays that,                            

   \15\Testimony of Dr. David Satcher, HR Subcommittee hearing, Mar. 5,   
   1998, p. 6.                                                            

                     responses from the public, notably from America's 
          Blood Centers (ABC), the American Association of Blood Banks 
          (AABB), and the American Red Cross (ARC) were received on May
          19 and 20, 1998. I met with the leadership of the American   
          Association of Blood Banks, as representatives of these other
          organizations, on May 24, 1998. In response to these and other
          communications, FDA announced plans to revise its Guidance to
          Industry at the Blood Products Advisory Committee meeting on 
          June 18, 1998, specifically in the areas of additional testing
          of donor samples and implementation time frames.\16\         
                                                                          

   \16\Sept. 18, 1998, letter from Surgeon General David Satcher to       
   Chairman Shays (in subcommittee files).                                

      CDC organized a Consultant's Conference to plan implementation of the
   HCV education initiative on July 15 17, 1998. A followup workshop for  
   industry, cosponsored by ABC, AABB, and ARC was held on August 25 26,  
   1998, and suggestions arising at this workshop were communicated to the
   Department on September 9, 1998. On October 16, 1998, CDC will publish 
   ``Recommendation for the Prevention and Control of Hepatitis C Virus   
   [HCV] Infection and HCV-Related Chronic Disease'' in Morbidity and     
   Mortality Weekly Report.                                               
      On September 8, 1998, FDA withdrew the March 20, 1998, ``Guidance for
   Industry: Supplemental Testing and the Notification of Consignees of   
   Donor Test Results for Antibody to Hepatitis C Virus (Anti-HCV).''\17\ 
    Unexpectedly, no other guidance was issued in place of the first      
   guidance and the agency did not commit itself to a date certain for    
   re-issuance. The agency's action removed FDA's recommendation that blood
   establishments should begin notifying consignees within 6 months of the
   date of publication of guidance (i.e. by September 20, 1998) concerning
   results of donations tested prior to the date of implementation of the 
   guidance.                                                              
   \17\FDA web site announcement (www.fda.gov/cber/whatsnew/htm), Sept. 9,
   1998.                                                                  
      At the HR Subcommittee's September 9, 1998 hearing, Chairman Shays  
   asked FDA Acting Commissioner Michael Friedman for a status report on  
   the HCV look back and education campaign. Dr. Friedman responded, ``. .
   . the commitment given by Dr. Satcher, not just on the part of FDA but 
   on the part of the entire Health and Human Services, indicated a serious
   organization-wide commitment and look-back campaign.''\18\             
                                                                          

   \18\ Blood Safety: Minimizing Plasma Product Risks, 105th Cong., 2d    
   sess., p. 22 of original transcript (1998) (testimony of Dr. Michael   
   Friedman).                                                             
      FDA's Office of Blood Research and Review Director Jay Epstein, M.D.,
   stated, in response to a question from Chairman Shays about the status 
   of hospital identification of HCV infected transfusion patients, that, 
   ``FDA published a guidance in March of this year which directed the    
   blood organization to identify the units where the donor subsequently  
   was learned to . . . [seroconvert] to Hepatitis C. The process of      
   tracing those records, we believe, has been ongoing since that time . .
   .''\19\                                                                
                                                                          

   \19\Testimony of Dr. Jay Epstein, HR Subcommittee hearing, Sept. 9,    
   1998, p. 24 of original transcript.                                    
      At no point during the hearing did any FDA witness volunteer that the
   March 20, 1998, Guidance to Industry on HCV look back had been withdrawn
   the day before. Blood collection organizations were notified by FDA of 
   the impending withdrawal of the guidance by telephone call on August 28,
   1998.\20\                                                              
    Consumer groups such as the American Liver Foundation and the Hep C   
   Connection were not notified of FDA's action in advance.\21\           
    No written notices were sent by FDA of the agency's instructions to   
   blood banking organizations and no written records were kept of these  
   exchanges.\22\                                                         
                                                                          

   \20\AABB Weekly Report, ``HCV Look back Update,'' American Association 
   of Blood Banks newsletter, Sept. 4, 1998, Bethesda, MD, vol. 4, No. 34,
   p. 1.                                                                  
   \21\HR Subcommittee staff telephone conference call with Allan         
   Brownstein, executive director, American Liver Foundation, Sept. 10,   
   1998, and with Ann Jesse, executive director, Hep C Connection, on Sept.
   14, 1998.                                                              
   \22\HR Subcommittee staff conversation with Melinda Plaisier, Deputy   
   Associate Commissioner for Legislative Affairs, Sept. 10, 1998.        
      Dr. Epstein also testified that, while the blood banks had told the 
   agency that letters to recipients had been sent, FDA had no independent
   verification that this had occurred and was simply relying on the      
   industry's verbal assurances that identification of suspected          
   HCV-infected units had been achieved. Dr. Friedman acknowledged that no
   recipient of HCV-infected blood products has yet received a letter     
   informing him or her of possible infection.                            
      On September 23, 1998, FDA issued a revised ``Guidance for Industry:
   Current Good Manufacturing Practice for Blood and Blood Components: (1)
   Quarantine and Disposition of Units from Prior Collections from Donors 
   with Repeatedly Reactive Screening Tests for Antibody to Hepatitis C   
   Virus (Anti-HCV); (2) Supplemental Testing, and the Notification of    
   Consignees and Blood Recipients of Donor Test Results for Anti-HCV.''  
   The revised guidance grants blood establishments another 6 months from 
   the date of issuance of the guidance to begin notifying consignees (i.e.
   March 23, 1999). FDA recommends that this notification be completed    
   within 18 months of the date of publication of the guidance. This      
   guidance suggests, but does not require, that individuals who received 
   potentially HCV-infected blood and blood products should be notified by
   March 23, 2000.                                                        
      In testimony at the June 18, 1998, FDA Blood Products Advisory      
   Committee [BPAC], Dr. Hal Margolis, Director of CDC's Hepatitis Branch 
   described HHS' view of the HCV look back.                              

                     Basically it has been our perception and our      
          assumption that, in fact, the targeted look back is something
          that is primarily going to be conducted by the blood industry,
          both by the blood collection agency as well as the transfusion
          services. In fact, as far as public sector programs, that is 
          something that PHS, other than the guidance and much of the  
          supporting educational material, has not put together a major
          effort or plans for conducting.\23\                          
                                                                          

   \23\Transcript of June 18, 1998, Blood Products Advisory Committee     
   meeting, p. 21 (in subcommittee files).                                

      The National Institutes of Health [NIH] have conducted an equally   
   sluggish and fragmented approach to research on HCV. Basic research on 
   Hepatitis C is conducted at NIH by seven different Institutes: the     
   National Cancer Institute [NCI], National Heart, Lung and Blood        
   Institute [NHLBI], National Institute of Diabetes, Digestive and Kidney
   Diseases [NIDDK], National Institute of Allergy and Infectious Diseases
   [NIAID], National Institute of Drug Abuse [NIDA], National Institute of
   Alcoholism and Alcohol Abuse [NIAAA], and the National Center for      
   Research Resources [NCRR].                                             
      Research moneys have increased during the last 3 fiscal years from  
   $25,300,00 in fiscal year 1997, to an estimated $29,835,000 in fiscal  
   year 1998, to an estimated $34,405,000 in fiscal year 1999. These      
   figures include both intramural and extramural funding. NIH did not keep
   Hepatitis C funding figures prior to 1997, according to the NIH Budget 
   Office.\24\                                                            
                                                                          

   \24\Feb. 26, 1998, correspondence from NIH Congressional Affairs Office
   to HR Subcommittee staff (in subcommittee files).                      
      In contrast, one pharmaceutical company alone spent $25 million in  
   1996 on HCV research.\25\                                              
    Dr. Teresa Wright, medical advisor to the American Liver Foundation and
   director of the Liver Clinic at the San Francisco VA Hospital, told    
   subcommittee staff that HCV research is largely ``pharmaceutical company
   driven'' due to the large potential market for HCV therapies.          
   \25\Sept. 18, 1998, letter from Audrey Wright Spolarich, Health Policy 
   Analysts, to Subcommittee staff (in subcommittee files).               
      Consumer groups such as the American Liver Foundation have criticized
   the allocation of resources to hepatitis programs by HHS. They feel    
   hepatitis transmission and treatment research funding is not           
   commensurate to the threat the disease presents to public health.\26\  
                                                                          

   \26\Statement of Dr. Teresa Wright, American Liver Foundation, HR      
   Subcommittee hearing Mar. 5, 1998, p. 65 73.                           
      On July 22, 1997, the House Committee on Appropriations included    
   report language to accompany the NIH appropriations bill which noted   
   that ``the March 1997 Hepatitis C [HCV] consensus conference made      
   significant new research recommendations that affect several NIH       
   Institutes and, therefore, requests that the Office of the Director play
   a role in coordinating this research in order to most effectively      
   respond to the HCV epidemic.''\27\                                     
                                                                          

   \27\House Report 105 205, ``Departments of Labor, Health and Human     
   Services, and Education, and Related Appropriation Bill, 1998,'' p. 100.
      NIH established the coordinating committee on February 12, 1998. Dr.
   Anthony Fauci, Director of NIAID, chairs the committee.                
      NIAID is attempting to develop an HCV preventative vaccine. However,
   NIAID researchers told HR Subcommittee staff that a vaccine is at least
   10 years away due to the variety (21) in genomic types of the HCV virus.
      NIAID has proposed a strategic plan for Hepatitis C research to guide
   NIAID programs in this area. NIAID recently established 4 Hepatitis C  
   Cooperative Research Centers at Stanford, University of Texas Medical  
   Center at Galveston, University of Southern California and the         
   University of Washington. In 1997, the NIDDK developed a long range    
   strategic plan for liver disease research, which includes Hepatitis C
   The Strategic Plan for Liver Disease Research was transmitted to       
   Congress prior to submission of the fiscal year 1999 budget, as        
   requested by the House and Senate Appropriations Committees.\28\       
                                                                          

   \28\Department of Health and Human Services, National Institutes of    
   Health, ``Liver and Biliary Diseases Strategic Plan,'' March 1998 (in  
   subcommittee files).                                                   
      It is noteworthy that the National Institute on Drug Abuse [NIDA]   
   spent the most NIH resources and continues to spend the most resources 
   on HCV research, which may reflect an institutional bias within HHS that
   HCV is a disease of injection drug users. This bias may have worked    
   against early recognition of HCV as a broader public health problem. 
 

      The Centers for Disease Control and Prevention [CDC] have developed a
   comprehensive, nationally-focused plan for the prevention and control of
   HCV infection, entitled ``A Prevention and Control Plan for Hepatitis C
   Virus Infection.'' Components of the plan include counseling and       
   testing, professional and public education, surveillance, epidemiology 
   and laboratory investigation, and evaluation. CDC estimates that the   
   plan will cost $48 million. The plan was submitted to HHS on April 14, 
   1998, but was not discussed by the HHS Blood Safety Committee due to HHS
   refusal to commit the requested funds to this CDC program.\29\         
                                                                          

   \29\HR Subcommittee staff conversations with Dr. Eric Goosby, HHS Office
   of HIV/AIDS and with Marc Smolonsky, Office of the Assistant Secretary 
   for Legislation, Sept. 18, 1998 (notes in subcommittee files). Note:   
   Total CDC spending on HCV Public Education Activities for fiscal year  
   1998 was $716,894 (in subcommittee files).                             
      To date, CDC conducted an educational satellite teleconference for  
   primary care physicians on November 22, 1997, with subsequent          
   distribution of a conference audiotape to 200,000 medical professionals
   in the summer of 1998. CDC has assisted private organizations such as  
   the American Liver Foundation, Hepatitis Foundation International and  
   the National Association of County and City Health Officers in the     
   development, evaluation and dissemination of educational materials for 
   populations at risk of HCV infection.                                  
      VA spent $11,546,423 on HCV from fiscal years 1988 1997, primarily on
   drug trials. In addition,                                              

                     the VA Cooperative Studies program is currently   
          planning a large-scale treatment trial to determine whether  
          interferon can prevent progressive liver disease in veterans 
          infected with Hepatitis C Virus. The study will include more 
          than 500 veterans at 17 VA medical facilities nationwide.    
          Enrollment of patients is expected to take 3 years, and each 
          veteran enrolled will be treated for 4 years. The total      
          duration of the study is expected to be 7 years. Final       
          approval of the study is pending. In addition, VA, in        
          collaboration with the Department of Defense, is planning to 
          issue an RFP [request for proposals] for studies on emerging 
          pathogens including Hepatitis C. This initiative is supported
          by funding in the DOD budget for VA/DOD collaborative        
          research.\30\                                                
                                                                          

   \30\Feb. 27, 1998, fax from VA to HR Subcommittee staff (in subcommittee
   files).                                                                

      VA researcher Dr. Gary Roselle published the first large study of HCV
   infection in VA patients in November 1997. In a mandatory survey of VA 
   health care facilities, the number of HCV antibody positive patients   
   increased as follows:                                                  

            6,612 in 1991                                              

            8,365 in 1992                                              

            14,097 in 1993                                             

            18,854 in 1994 (the last year with published data).        


    He concluded, ``This represents an increase of more than 285% during 
  the 4 year period.''\31\                                               
                                                                          

   \31\Gary A. Roselle, Linda H. Danko, Charles L. Mendenhall ``A Four-Year
   Review of Patients with Hepatitis C Antibody in Department of Veterans 
   Affairs Facilities,'' Military Medicine, 162, 711 714, 1997.           
      Since most veterans are not treated in VA medical facilities, the   
   actual incidence of HCV infected veterans is undoubtedly much greater. 
   VA has not conducted widespread surveillance to ascertain the number of
   infected veterans.                                                     
      There is much speculation that Vietnam era veterans, now in their   
   40's and 50's, are at much greater risk of HCV infection due to heavy  
   transfusion activity during the Vietnam war. Dr. Roselle concluded, ``Of
   particular interest to the VHA [Veterans Health Administration] is the 
   possible relationship of HCV disease with service in Southeast Asia    
   during the Vietnam era. Although HCV strain differences may not be     
   useful for determining specific sources of infection, amplification of 
   this blood-borne pathogen (e.g. transfusions) among the troops is a    
   conceivable explanation for a number of HCV infected persons identified
   in this study. Further epidemiologic data will be required before this 
   issue and that of service connection can be resolved.''\32\            
                                                                          

   \32\Ibid.                                                              

      Former Surgeon General C. Everett Koop is among physicians who have 
   called for an HCV screening program for all U.S. military personnel.

In May 1997, Senator Richard Shelby (R AL) asked the Pentagon to look     
   further into the possibility that immune globulins may have spread HCV.

   The Pentagon did not agree to study the issue and Senator Shelby       
   inserted the following report language in the 1998 Department of Defense
   Appropriations bill: ``The Department of Defense shall determine rates 
   of hepatitis C infection among personnel who served in deployments     
   overseas or who received blood plasma products from individuals infected
   with hepatitis C and provide counseling and access to treatment for    
   personnel as needed.''\33\                                             
                                                                          

   \33\Senate Report 105 45, Committee on Appropriations, Department of   
   Defense Appropriation Bill, 1998.                                      
      DOD provides an exit physical for retiring and discharged service   
   personnel. Diagnosis of a medical condition is a basis for eligibility 
   for lifetime treatment in military hospitals and for a service-connected
   disability for treatment in VA facilities.                             
      DOD does not routinely include a test for HCV infection in the blood
   series done at the exit physical or during annual physicals, although  
   new recruits are tested for HCV infection if they report a history of  
   hepatitis or are symptomatic of the infection.                         
      The omission of the HCV test ensures that military personnel with   
   undiagnosed chronic HCV miss the opportunity for early detection and   
   treatment of the disease. Also, DOD does not have an accurate estimate 
   of the prevalence of HCV in the military. As a result, veterans cannot 
   establish a service connection for HCV infection contracted in military
   service and are therefore not entitled to treatment for HCV or related 
   liver disease in VA facilities.                                        
      DOD stated in a fact sheet produced in July 1997 that, ``HCV        
   infections among military service members mirror those observed in the 
   United States civilian population . . .'' New recruits, like other young
   people, have lower than average HCV infection rates. DOD policy is to  
   screen or treat when clinically indicated, despite the fact that       
   Hepatitis C rarely manifests acute symptoms.                           
      Military service does involve exposure to some known risk factors for
   transmission of HCV such as: contact with HCV infected blood in        
   training, in combat and through transfusions; medical and surgical care;
   service in regions with high rates of HCV infection such as Asia and   
   North Africa; tattoos and IV and non-IV drug use.                      
      DOD cites studies in which military members did not have increased  
   incidence of HCV infection. Those studies found no evidence that foreign