Global Life Sciences Update
Direct-to-Consumer Prescription Drug Platforms: New Government Guidance and Comment Opportunity
- The patient has a valid prescription from an independent, third-party prescriber.
- When the patient purchases prescription drugs through a DTC program, no claims for the drugs are submitted to any insurer, including any Federal healthcare program (FHCP).
- The DTC program price paid by a Medicare Part D enrollee does not count toward their Medicare out-of-pocket spending.
- The manufacturer does not use the DTC program for one product to market other products that are reimbursable under a FHCP.
- The manufacturer does not condition the DTC price on any future purchases.
- The manufacturer makes the drug available to the FHCP enrollee through the DTC program for at least one full plan year.
- The drugs offered through the DTC program are not controlled substances.
- Potential arrangements that the industry is interested in pursuing in connection with DTC programs that may implicate the AKS but promote access to care and affordability of prescription drugs.
- What, if any, additional or modified AKS safe harbors may be necessary to protect such arrangements.
- Why any existing safe harbors do not adequately protect the arrangements necessary to effectuate beneficial DTC programs (e.g., telehealth or pharmacy arrangements).
- Any potential broader impacts or implications that may result from the proliferation of DTC programs.
- Whether the SAB adequately addresses the concerns of industry stakeholders related to DTC programs or whether additional guidance, safe harbors, exceptions, or a combination are necessary to promote beneficial DTC programs.
- Whether there are opportunities for OIG to clarify its position through guidance as opposed to regulation (e.g., amended SAB or FAQs)
- Any operational difficulties in implementing the guardrails in the SAB and potential solutions, as well as any additional guardrails that may be necessary to promote beneficial DTC programs
* * *
DTC programs present significant opportunities to enhance patient freedom of choice, reduce barriers to prescription drugs — particularly for patients facing geographic, mobility, socioeconomic, or other challenges impacting access — and promote patient safety and quality of care. Manufacturers and other stakeholders can shape OIG’s guidance on this increasingly important topic.
Notably, certain members of Congress continue to scrutinize DTC models3. After the SAB and RFI were published, Senators Durbin, Welsh and Warren sent a letter to the OIG Inspector General expressing concern with how OIG intends to conduct oversight and apply the AKS to DTC models as reflected in the SAB. As with prior oversight letters, the most recent letter expresses concern about how manufacturers will ensure that patients using manufacturer-sponsored telehealth platforms are able to receive a valid prescription from an independent, third-party prescriber. The letter also expresses specific concerns about TrumpRx, including potential conflicts of interest between the government-sponsored website and an online dispensing company. The letter includes several requests for information from the Inspector General focused on the operation of TrumpRx.
In addition to monitoring the OIG response to the congressional inquiry and any followup, manufacturers should closely review the SAB with their current or planned DTC models in mind, including potential arrangements with third parties to facilitate a DTC offering (e.g., telehealth, pharmacy), to consider providing focused comments in response to the RFI on substantive and technical issues that can streamline the compliance and commercial process for standing up a DTC program.
1OIG, Adv. Op. No. 14-05 (July 28, 2014).
270 Fed. Reg. 70623, 70627 (Nov. 22, 2005).
3Dick Durbin Press Release and Durbin HHS OIG Letter on TrumpRx
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