Exception For Coupons On Branded Pharmaceuticals Added To Massachusetts Anti-Kickback Statute

The Massachusetts Legislature has carved out the first exception to the Massachusetts private payer anti-kickback statute since its enactment in 1988. This law makes it a crime to pay any remuneration in return for purchasing any item payable by a health insurer or self-insured plan. In an outside section to the FY13 budget, which was signed into law by Governor Patrick on July 8th, the Massachusetts Legislature created an exception to allow manufacturers of biological products and prescription drugs to offer free product vouchers, discounts, and other reductions in out-of-pocket expenses for branded drugs without fear of violating the law. This carve-out does not, however, apply to any branded drug that has an AB rated generic equivalent. The exception became effective on July 1st but will sunset on July 1, 2015.

It remains to be seen whether such discounts will have an impact on overall health care costs. Along with the amendment, the Legislature required the Division of Health Care Finance and Policy, in consultation with the Department of Public Health, to consider, among other things, the impact on commercial health insurance premiums, the cost impact to consumers upon expiration of the coupon or discount, and any changes...