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ACT SUMMARY 2007-2008


ACT NO. 80


Prescription drugs; health; pharmacy benefit managers;

consumer fraud; data-mining; transparency

This act increases transparency in prescription drug information and pricing in several ways.

The act creates new regulation of pharmacy benefit managers, including an enhanced duty of care toward the pharmacy benefit managers’ customers, and preferred, optional contract terms.

The act also limits access to prescriber data for marketing purposes unless the prescriber gives permission through an “opt-in” program run through the licensing boards. If the prescriber opts to have his or her information provided for marketing or promotion of prescription drugs, the marketers using the information will be required to provide evidence-based information.

The act also enhances the Medicaid preferred drug list and promotes the use of evidence-based materials.

A “counter-detailing” program is created in the Department of Health – contracting with the Area Health Education Centers at UVM – to provide evidence-based information directly to prescribers. The program will also include a generic drug voucher pilot program to provide prescribers with vouchers that can be redeemed at pharmacies by patients. This enables prescribers to start patients on lower-cost pharmaceuticals at the outset of treatment.

The attorney general is given additional authority under the Consumer Fraud Act to enforce federal regulations regarding false or misleading advertising to patients or to prescribers. The department of banking, insurance, securities, and health care administration is given additional authority to ensure that the marketing of Medicare products is not done in a coercive or misleading way.

Effective Date: July 1, 2007; except for prescriber privacy section, January 1, 2008.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont