NJ Proposes Limits on Payments, Gifts to Prescribers
The New Jersey attorney general and Division of Consumer Affairs is taking comments on a proposed rule to limit payments and gifts from drug manufacturers to licensed providers who are authorized to prescribe medications. Attorney Serra Schlanger (Hyman, Phelps & McNamara) writes in her firm’s FDA Law Blog that the proposal lists things that New Jersey prescribers could not accept and those gifts and payments they could accept.
“The rule would impose a limit of $10,000 per calendar year on the amount of compensation that a single prescriber may receive in the aggregate from all pharmaceutical manufacturers for speaking at promotional activities, participation on advisory boards, and consulting,” Schlanger writes. “Payment for speaking at continuing education events would not be subject to the $10,000 cap.”
She says the proposal is modeled on the Pharmaceutical Research and Manufacturers of America Code on Interactions with Health Care Professionals, but includes certain limitations that are more stringent than that code.
Schlanger notes that the proposed rule would not specifically exempt compensation for serving as an investigator in a clinical trial or otherwise conducting bond fide research. Even if such research payments were considered “consulting arrangements,” she says, they would be subject to the $10,000 aggregate annual cap applicable to each prescriber.
State licensing boards would be empowered to take enforcement action against prescribers who accept prohibited gifts or payments from pharmaceutical manufacturers. “Although the proposed rule would not impose penalties on, or otherwise increase the state’s authority over, pharmaceutical manufacturers,” Schlanger concludes, “the limitations in the proposed rule could dramatically impact how manufacturers interact with prescribers in New Jersey.”