Report Title:

Prescription Information; Confidentiality

 

Description:

Prohibits, except for certain limited purposes, the use, transfer, licensing, or sale of a patient's prescription information for any commercial purpose.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

192

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to confidentiality of patient prescription information.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that on September 16, 2008, the United States First Circuit Court of Appeals upheld a New Hampshire law that asserts the right of states to prohibit the sale of doctor-specific prescription drug data that is widely used in pharmaceutical marketing.  The New Hampshire law was intended to cut down on state health care costs by eliminating the tool used by drug sales representatives in promoting brand name drugs.  By purchasing the data describing which doctors prescribe what drugs, pharmaceutical sales forces are better able to identify which doctors might use their products and be receptive to their sales proposals.  Pharmaceutical representatives can also focus on persuading doctors who do not write many prescriptions for their products to change their minds.  In his ruling, United States Court of Appeals Judge Bruce Marshall Selya wrote, "The record contains substantial evidence that, in several instances, detailers [pharmaceutical sales representatives] armed with prescribing histories encourage the overzealous prescription of more costly brand-name drugs regardless of both the public health consequences and the probable outcome of a sensible cost/benefit analysis."

     The purpose of this Act is to enact a prescription information confidentiality law based on the existing law in New Hampshire.

     SECTION 2.  Chapter 328, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§328‑    Prescription information; confidentiality; violation.  (a)  Records relating to prescription information containing patient-identifiable and prescriber-identifiable data shall not be licensed, transferred, used, or sold by any pharmacy benefits manager, insurance company, electronic transmission intermediary, retail, mail order, or internet pharmacy or other similar entity, for any commercial purpose, except for the limited purposes of:

(1)  Pharmacy reimbursement;

(2)  Formulary compliance;

(3)  Care management;

(4)  Utilization review by a health care provider, the patient's insurance provider, or the agent of either;

(5)  Health care research; or

(6)  As otherwise provided by law.

(b)  For the purpose of this section, "pharmacy benefit manager" means a third party administrator of prescription drug benefit programs primarily responsible for processing and paying prescription drug claims, developing and maintaining a drug formulary, contracting with pharmacies, and negotiating discounts and rebates with drug manufacturers.  Commercial purposes include advertising, marketing, promotion, or any activity that could be used to influence sales or market share of a pharmaceutical product, influence or evaluate the prescribing behavior of an individual health care professional, or evaluate the effectiveness of a professional pharmaceutical detailing sales force.

(c)  Nothing in this section shall prohibit:

(1)  The dispensing of prescription medications to a patient or to the patient's authorized representative;

(2)  The transmission of prescription information between an authorized prescriber and a licensed pharmacy;

(3)  The transfer of prescription information between licensed pharmacies;

(4)  The transfer of prescription records that may occur in the event a pharmacy ownership is changed or transferred;

(5)  Care management educational communications provided to a patient about:

(A)  The patient's health condition;

(B)  Adherence to a prescribed course of therapy; or

(C)  Other information about the drug being dispensed, treatment options, or clinical trials.

(d)  Nothing in this section shall prohibit the collection, use, transfer, or sale of patient and prescriber data that are not identifiable by zip code, geographic region, or medical specialty for commercial purposes.

(e)  In addition to other remedies, a violation of this section is an unfair or deceptive act or practice within the meaning of section 480‑2."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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