CONCORD — The House voted to repeal the New Hampshire Vaccine Association, a nonprofit that the Legislature established more than 20 years ago to provide discounted childhood vaccines to providers.

Supporters of House Bill 524 to abolish the association said the nonprofit lacks transparency and accountability, while abolishing it will have no impact on the state’s vaccination rate, which is declining like in most other states.

But opponents of the bill said the public-private nonprofit was established in 2002 to purchase vaccines in bulk for both the state and private providers at a 30 percent discount. That makes vaccines readily available to every child who needs them.

Under the voluntary program, providers do not have to maintain their own inventory of vaccines nor bill insurance companies for every shot.

Rep. Jessica LaMontagne, D-Dover, said there has been no evidence of fraud on anyone’s part, and no insurance company or health care provider testified in favor of the bill, while the Department of Health and Human Services opposed it.

If the association is repealed, the state will have to maintain a greater inventory and physicians will also have to have their own inventory of vaccines, she said.

“The system works and does not need fixing,” LaMontagne said. “If you repeal this, there will be fewer children getting vaccines and the rates will decline as we’ve seen in the rest of the U.S.”

She said vaccines have saved more lives than anything else in history, and that countries are beginning to see polio cases again.

LaMontagne said her husband’s father contracted polio in the 1950s and spent the last 29 years of his life in an iron lung.

“Please do not go back on the progress we have made on vaccines,” LaMontagne said.

But Rep. Jim Kofalt, R-Wilton, said the organization is not like any other nonprofit he has seen. He said the organization assesses a levy on insurance companies they have to pay or their licenses can be revoked, and it can assess fines and penalties for late payments.

And he said the members of the organization are shielded from all liabilities for their operation and are not subject to the state’s right-to-know law because they are a nonprofit.

“This organization has a disturbing lack of transparency and accountability,” Kofalt said. “It ostensibly saves insurance carriers money, but does it really?”

He said it costs taxpayers $1 million a year because the organization refuses to pay its 60 percent share of the cost through the Department of Health and Human Services. 

“Taxpayers are holding the bag,” he said. “We need to get government out of this business.”

If the organization is abolished, the same number of insured children will receive vaccines through their family’s physician and those who are not will continue to receive vaccines through Health and Human Services, he said.

Patients do not pay anything now for vaccines and they won’t five years from now after the organization is abolished, Kodfalt said, because the federal government mandates that children’s vaccines be free.

The House electronic system for submitting testimony and opposition and support for bills shows 3,552 people opposing the bill and 193 supporting it.

“Voters do not want Republican-led, anti-science propaganda to win the day when public health is at risk,” LaMontagne said. “We hope enough of our colleagues will come around when the bill comes to the floor for a second time.”

Thursday The House voted 189-181 to abolish the vaccine association.

The bill was sent to the House Ways and Means Committee for review before a final vote in the House.

Garry Rayno may be reached at garry.rayno@yahoo.com.