Topic:
ADVERTISING; CONFIDENTIALITY OF INFORMATION; DRUGS; LEGISLATION; PATIENTS' RIGHTS; PRIVACY LAW; RETAIL TRADE;
Location:
DRUGS- LAW AND LEGISLATION; PRIVACY;

OLR Research Report


July 17, 2006

 

2006-R-0461

NEW HAMPSHIRE BAN ON SALE OF PRESCRIPTION DRUG INFORMATION

By: John Kasprak, Senior Attorney

You asked for information on a recently enacted New Hampshire law banning the sale of prescription drug information that identifies individual physicians or patients.

SUMMARY

A recently adopted New Hampshire law declares that “prescription information shall not be used, transferred, licensed, or sold for any commercial purpose except for limited purposes. ” New Hampshire is the first state to ban the sale of patient and prescriber identity for use in pharmaceutical marketing, according to the National Legislative Association of Prescription Drug Prices (as reported by BNA's Health Law Reporter, July 6, 2006, p. 780).

NEW HAMPSHIRE LAW

Chapter 328 of the 2006 New Hampshire Laws (HB 1346) provides that records relating to prescription information containing patient- and prescriber-identifiable data must 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. Exceptions are allowed for pharmacy reimbursement; formulary compliance; care management; utilization review by a health care provider, the patient's insurance provider or the agent of either; health care research; or as otherwise allowed by law.

The law defines “commercial purpose” as 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.

It does not prohibit dispensing prescriptions to a patient or to the patient's authorized representative; transmission of prescription information between an authorized prescriber and a licensed pharmacy; transfer between licensed pharmacies; transfer of prescription records that may occur if pharmacy ownership changes or transfers; and care management educational communications given to a patient about his health condition, adherence to a prescribed course of therapy, or other information about the drug dispensed, treatment options, or clinical trials. Also, the law does not prohibit collecting, using, transferring or selling patient and prescriber data by zip code, geographic region, or medical specialty for commercial purposes, as long as it does not identify individuals.

A copy of the legislation can be found at http: //www. gencourt. state. nh. us/legislation/2006/hb1346. html.

JK: ro