Public Readiness and Emergency Preparedness Act
Questions and Answers
The Public Readiness and Emergency
Preparedness Act (“PREP Act”) enacted as Division C of the Defense
Appropriations Act for fiscal year 2006, Pub. L. No. 109-148, added new
authorities under the Public Health Service (PHS) Act to alleviate concerns
about liability related to the manufacture, testing, development, distribution,
administration and use of countermeasures against chemical, biological,
radiological and nuclear agents of terrorism, epidemics, and pandemics. Questions have arisen from the
manufacturing industry and the healthcare community regarding the scope of
protections available under the PREP Act.
The following is not an exhaustive
review of the PREP Act’s provisions in all contexts, nor
a protocol for the Department’s implementation of the PREP Act.
Overview
The PREP Act authorizes the
Secretary of the Department of Health and Human Services (“Secretary”) to issue
a declaration (“PREP Act declaration”) that provides immunity from tort
liability (except for willful misconduct) for claims of loss caused, arising
out of, relating to, or resulting from administration or use of countermeasures
to diseases, threats and conditions determined by the Secretary to constitute a
present, or credible risk of a future public health emergency to entities and
individuals involved in the development, manufacture, testing, distribution,
administration, and use of such countermeasures. A PREP Act declaration
is specifically for the purpose of providing immunity from tort liability, and
is different from, and not dependent on, other emergency declarations.
The PREP Act also authorizes an emergency fund in the United States Treasury to
provide compensation for injuries directly caused by administration or use of a
countermeasure covered by the Secretary’s declaration.
1. What is Immunity from Tort
Liability?
Immunity from tort liability means
there is no legal tort claim that can be pursued in court, whether state or
federal. Tort claims precluded by a PREP Act declaration include all
claims (except for willful misconduct, which is explained below under Question
4, “Are There Any Limitations on Immunity From Liability?”) under Federal or
State law for any type of loss including death; physical, mental, or emotional
injury; fear of such injury; or property damage or loss, including business
interruption loss, with any causal relationship to any stage of development, distribution, administration or use of the
covered countermeasure recommended in the declaration.
2. Who May be Afforded Immunity from
Tort Liability Under a PREP Act Declaration?
The Secretary’s declaration may provide
liability immunity for covered persons involved in administration and
use of a countermeasure recommended in the declaration. (See Question 6, below,
“What Countermeasures May be Covered by Immunity From
Liability?” for an explanation of what countermeasures may be covered by the
declaration.) Covered persons may, at the Secretary’s discretion,
include:
Officials, agents, and employees of
any of these entities or persons are also covered persons.
A person includes an
individual, partnership, corporation, association, entity, or public or private
corporation, including a Federal, State, or local government agency or
department.
A manufacturer includes a
contractor or subcontractor of a manufacturer; a supplier or licenser of any
product, intellectual property, service, research tool or component or other
article used in the design, development, clinical testing, investigation or
manufacturing of a covered countermeasure; and any or all of the parents,
subsidiaries, affiliates, successors, and assigns of a manufacturer.
A distributor means a person
or entity engaged in the distribution of drug, biologics, or devices, including
but not limited to: manufacturers; repackagers;
common carriers; contract carriers; air carriers; own-label distributors;
private-label distributors; jobbers; brokers; warehouses and wholesale drug
warehouses; independent wholesale drug traders; and retail pharmacies.
A program planner means a
State or local government, including an Indian Tribe; a person employed by the
State or local government; or other person (such as a private sector employer
or community group) who supervises or administers a program with respect to the
administration, dispensing, distribution, provision, or use of a
countermeasure, including a person who establishes requirements, provides
policy guidance, or supplies technical or scientific advice or assistance or
provides a facility to administer or use a covered countermeasure in accordance
with the Secretary’s declaration.
A qualified person means a
licensed health professional or other individual who is authorized to
prescribe, administer, or dispense covered countermeasures under the law of the
State in which the countermeasure was prescribed, administered, or dispensed;
or a person within a category of persons identified as qualified in the
Secretary’s declaration.
For manufacturers and distributors,
immunity applies without regard to whether the countermeasure is administered
to, or used by, populations designated in the Secretary’s declaration or
whether such administration and use occurs in the geographic areas designated
in the Secretary’s declaration.
For program planners and qualified
persons, immunity applies when the countermeasure is administered to or used by
persons designated in the Secretary’s declaration and in geographic areas
designated in the Secretary’s declaration, or when the program planner or
qualified person reasonably could have believed that these conditions were met.
3. What Types of Losses Are Covered?
The PREP Act declaration provides
immunity for any type of loss suffered by an individual who receives the
countermeasure, including death; physical, mental, or emotional injury, illness,
disability or condition; fear of physical, mental, or emotional injury illness,
disability, or condition, including any need for medical monitoring; and loss
of or damage to property, including business interruption, with any causal
relationship to any to stage of development, distribution, administration or
use of the countermeasure.
4. Are There Any Limitations on
Immunity from Liability?
Immunity from liability is not
available for death or serious physical injury caused by willful misconduct.
An individual who would ordinarily be protected under the PREP Act can be
sued for tort claims if he or she engages in willful misconduct. A serious
physical injury is life-threatening, or results in or requires medical or
surgical intervention to preclude permanent impairment of a body function or
permanent damage to a body structure.
Immunity is not available for claims
based on activities that fall outside the scope of the
declaration. As described below (“When Does Immunity Under
the PREP Act Become Available?”), the Secretary can specify the conditions
under which the declaration will provide immunity from liability, including
(but not limited to) the effective dates and geographic area for which immunity
will be available. Claims related to administration and use of the countermeasures that are inconsistent with those
conditions are not afforded liability immunity under the declaration.
Immunity is not available for claims
of loss that do not allege a causal relationship to the administration
or use of a covered countermeasure and are not in fact based on such a causal
relationship. A causal relationship with administration and use
under the PREP Act includes a causal relationship with the design, development,
clinical testing or investigation, manufacture, labeling, distribution,
formulation, packaging, marketing, promotion, sale, purchase, donation,
dispensing, prescribing, administration, licensing, or use of such
countermeasure.
Immunity from liability also is not
available under the PREP Act for claims filed under foreign law in courts
outside the United States. Immunity may be available for claims filed
under United States law in United States courts, even when based on events that
took place outside the United States.
Immunity from liability is not
available under the PREP Act for lawsuits other than tort claims. For
example, a PREP Act declaration would not provide immunity for claims related
to violations of civil rights laws, the Americans with Disabilities Act, labor
laws, or other such claims that have no connection to a tort claim.
5. What is Willful Misconduct?
Willful misconduct is an act or omission that is taken: 1) intentionally to
achieve a wrongful purpose; 2) knowingly without legal or factual
justification; and 3) in disregard of a known or obvious risk that is so great
as to make it highly probable that the harm will outweigh the benefit.
All three of those conditions must be met for a finding of willful
misconduct.
The PREP Act further specifies that:
In addition, the Secretary is
required to publish regulations that further restrict the actions or omissions
that qualify as willful misconduct.
6. What Countermeasures May be
Covered by Immunity From Liability?
A countermeasure covered under a
PREP Act declaration may be:
As further explained in the
definitions provided below, these terms include products that are approved,
cleared, or licensed under the Federal Food, Drug, and Cosmetic Act or the
Public Health Service Act, authorized for investigational use under the Federal
Food, Drug, and Cosmetic Act, or authorized under an Emergency Use
Authorization (“EUA”) under the Federal Food, Drug and Cosmetic Act.
A qualified pandemic or epidemic
product means a drug, biological product, or device that is:
A security countermeasure, as
defined in the Public Health Service Act, is a drug, biological product, or
device that:
A drug, as defined in the
Federal Food, Drug, and Cosmetic Act, includes articles intended for use in the
diagnosis, cure, mitigation, treatment or prevention of disease in man or other
animals and articles (other than food) intended to affect the structure or
function of the body of man or other animals.
A biological product, as
defined in the Public Health Service Act, means a virus, therapeutic serum,
toxin, antitoxin, vaccine, blood, blood component or derivative, allergenic or
analogous product, arsphenamine or its derivative (or
any other trivalent organic arsenic compound) applicable to the
prevention, treatment, or cure of a disease or condition of human beings.
A device, as defined in the
Federal Food, Drug, and Cosmetic Act,includes an
instrument, apparatus, implement, machine, contrivance, implant, in vitro
reagent, or other similar or related article intended for use in the diagnosis,
cure, mitigation, treatment or prevention of disease in man or other animals or
intended to affect the structure or function of the body of man or other
animals which does not achieve its primary intended purposes through chemical
action within or on the body of man or other animals and which is not dependent
upon being metabolized for the achievement of its primary intended purposes.
An unapproved drug, biological
product, or device may be authorized for emergency use following a
declaration of emergency by the Secretary of Health and Human Services.
Such a declaration is based on one of the following:
The Health and Human Services
Secretary, through the Food and Drug Administration, may then issue an
emergency use authorization for a particular product if, among other things,
the known and potential benefits of the product outweigh its known and
potential risks, and there is no adequate, approved, and available alternative
to the product. The Secretary must impose required conditions on the
emergency use authorization and may impose additional conditions, consistent
with the Food, Drug, and Cosmetic Act. For more information on the
emergency use authority, please see
http://www.fda.gov/oc/guidance/emergencyuse.html.
7. When Does Immunity Under the PREP
Act Become Available?
Immunity under the PREP Act becomes
available when the Secretary issues a declaration, beginning on the effective
date or other triggering event stated in the declaration.
8. What Information is Included in
the Secretary’s Declaration?
The Secretary’s declaration includes
his determination that a disease or health condition or threat to health
constitutes a public health emergency, or that there is a credible risk that it
will in the future constitute an emergency; and his recommendation for
manufacture, testing, development, distribution, administration or use of one
or more countermeasures. The declaration then specifies the conditions
for which protections from liability are in effect:
9. Where is the Secretary’s
Declaration Published?
The Secretary’s declaration and any
amendments to the declaration are published in the Federal Register.
10. What Factors Are Considered by
the Secretary?
In deciding whether to issue a PREP
Act declaration, the Secretary must consider the desirability of encouraging
the design, development, clinical testing or investigation, manufacture,
labeling, distribution, formulation, packaging, marketing, promotion, sale,
purchase, donation, dispensing, prescribing, administering, licensing, and use
of the countermeasure recommended in the declaration. The Secretary also
has discretion to consider other relevant factors.
11. How is a PREP Act declaration
different from a Declaration of Public Health Emergency under section 319 of
the Public Health Service Act?
Under section 319 of the Public
Health Service Act, the Secretary may issue a declaration of a public health
emergency based upon a determination that – 1) a disease or disorder presents a
public health emergency; or (2) a public health emergency, including
significant outbreaks of infectious disease or bioterrorist attacks, otherwise
exists. Following a section 319 declaration, the Secretary can take a number of
emergency actions, including: issuing an Emergency Use Authorization of an
investigational product; and waiving certain Medicare, Medicaid, State
Children's Health Insurance Program, and Health Insurance Portability and
Accountability Act requirements. In recent experience, a public health
emergency under section 319 of the Public Health Service Act was declared in
response to the terrorist events in New York and Washington on September 11,
2001, and the anthrax outbreak in Florida in the Northeast later that fall. The
Secretary also declared a public health emergency in a number of states due to
Hurricanes Katrina, Rita, and Wilma in September 2005.
The determination required for a
PREP Act declaration, and the declaration's effect, are different. As stated
above under question 8, “What Information is Included in the Secretary’s
Declaration?”, prior to issuing a PREP Act declaration, the Secretary must
determine that a disease or health condition or threat to health constitutes a
public health emergency, or that there is a credible risk that it will in the
future constitute an emergency. This determination is independent of, and
may be made in advance of, a declaration of a public health emergency under
section 319. A PREP Act declaration triggers the Act's immunity (“When
Does Immunity Under the PREP Act Become Available?”)
and a separate declaration under section 319 or other statutes is not needed
for immunity under the PREP Act to take effect.
12. Is There Any Compensation for
Injury?
The PREP Act also authorized a
“Covered Countermeasures Process Fund” to provide compensation to eligible
individuals who suffer specified injuries from administration or use of a
countermeasure pursuant to the declaration. While no funds have been
appropriated for this purpose, any requests for compensation must be filed
within one year of administration or use of the countermeasure. Requests
would go to the HRSA Preparedness Countermeasures Injury Compensation Program
(http://www.hrsa.gov/countermeasurescomp/default.htm). If funds are
appropriated, compensation may then be available for medical benefits, lost
wages and death benefits to eligible individuals for specified injuries in
accordance with regulations published by the Secretary. Eligibility for
compensation and the injuries for which compensation may be available are
further defined by regulation.
13. How Does an Individual File a
Claim?
An individual who suffers a serious
physical injury or death from administration and use of a countermeasure
pursuant to a declaration (or his representative) must first seek compensation
from the Covered Countermeasures Process Fund. A serious physical injury
means an injury that is life threatening, results in, or requires medical or
surgical intervention to prevent, permanent impairment of a body function or
permanent damage to body structure. Any compensation will be reduced by
public or private insurance or worker’s compensation available to the injured
individual.
If no funds have been appropriated
to the compensation program, the Secretary does not make a final determination
on the individual’s request within 240 days, or if the individual decides not
to accept the compensation, the injured individual or his representative may
pursue a tort claim in the United States District Court for the District of
Columbia, but only if the claim involves willful misconduct, is pled with
particularity required under the PREP Act, verified, and accompanied by an affidavit
by a physician who did not treat the individual and certified medical
records. Any award is reduced by any public or private insurance or
worker’s compensation available to the injured individual. Awards for
non-economic damages, such as pain, suffering, physical impairment, mental
anguish, and loss of consortium are also limited. If the individual
accepts compensation, or if there is no willful misconduct, the individual does
not have a tort claim that can be filed in a United States Federal or a State
court.
14. How does Indemnification Provided under Public Law 85-804 Differ from Immunity
Provided Under the PREP Act?
Indemnification under Public Law No.
85-804 is available to government contractors who conduct national defense
functions. Essentially, when a contractor is indemnified, the Department
agrees to pay judgments against the contractor for tort liability. The
Secretary has determined that development of some countermeasures, such as
smallpox and pandemic influenza, may be considered a national defense
function. Thus, in some cases, the Secretary may issue a declaration
under the PREP Act that covers countermeasures for which manufacturers are also
indemnified as government contractors. In that case, immunity from
liability would apply to claims covered by the PREP Act declaration, and
indemnification would be available for some tort claims, other than claims
involving willful misconduct, that are not covered by the PREP Act declaration.
15. How does Liability Protection
Provided Under the Smallpox Emergency Personnel Protection Act Differ from
Immunity Provided Under the PREP Act?
Under section 304 of the Homeland
Security Act and the Smallpox Emergency Personnel Protection Act (SEPPA), the
Secretary may issue a declaration to provide that manufacturers, distributors,
hospitals, healthcare entities, state and local government and their agencies,
employees, agents and volunteers, and vaccinated individuals who accidentally
transmit vaccinia are covered under the Federal Tort
Claims Act for negligent or wrongful acts leading to injury or death from
administration of a smallpox vaccine, other smallpox countermeasures, or
substances used to control or treat adverse effects from vaccines and
countermeasures. Essentially, the United States becomes the defendant for
any claims filed against these individuals and entities. For more
information about liability protections under SEPPA, please see
http://www.bt.cdc.gov/agent/smallpox/vaccination/healthcare-304-guidance.asp
SEPPA also provides a compensation
program for injured individuals who receive the countermeasures in accordance
with the declaration and participate in a smallpox emergency response plan
approved by the Secretary. For more information about injury compensation
available under SEPPA, please see
http://www.hrsa.gov/smallpoxinjury/default.htm.
The PREP Act may be found in sections 319F-3 and
319F-4 of the PHS Act and is codified in the United States Code at 42 U.S.C.
§§247d-6d, 247d-6e.
Source: http://www.hhs.gov/disasters/emergency/manmadedisasters/bioterorism/medication-vaccine-qa.html