OIG Refining Patient Assistance Program Rules: Attorney
Attorney Chelsea Rutherford (McDermott Will & Emery) says that the HHS Inspector General has been issuing advisory opinions that revise its approach to patient assistance programs (PAPs) that provide financial assistance or free prescription drugs to low-income individuals. “While none of these opinions or modifications are dramatically new on their face,” she says in an online blog post, “together they provide valuable insight into the types of facts that can mitigate the OIG’s general concerns with tailored disease funds.”
Historically, Rutherford explains, the OIG has been more comfortable with true charitable programs that are not drug-specific and that reflect other characteristics demonstrating a broad patient focus, rather than those reflecting a drug or pharmaceutical manufacturer focus.
Because of a trend of some independent charity PAPs establishing or operating specific disease funds that limit assistance to a subset of available products, the OIG in 2014 articulated a concern with such PAPs and said it would view them as having a higher baseline risk of abuse when their assistance was limited to only a subset of available FDA-approved products for treatment of the disease.
New opinions and modifications in 2015, Rutherford writes, are consistent with the standard but add nuanced factors and exceptions that appear to show a more refined stance on specific disease funds.
“While the OIG continues to reiterate the potential risks posed by disease funds that are tailored to specific symptoms, severity of symptoms, method of drug administration, stages of a disease, or types of drug treatment,” she concludes, “its recent opinions and modifications illustrate several exceptions to this general position.”