HOUSE BILL REPORT
SSB 6241
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Reported by House Committee On:
Health Care & Wellness
Title: An act relating to prohibiting the sale and use of prescriber-identifiable prescription data for marketing or promotional purposes.
Brief Description: Prohibiting the sale or use of prescriber-identifiable prescription data for commercial or marketing purposes.
Sponsors: Senate Committee on Health & Long-Term Care (originally sponsored by Senators Fairley, Pflug, Kohl-Welles, Kline and Franklin).
Brief History:
Health Care & Wellness: 2/25/08, 2/27/08 [DP].
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON HEALTH CARE & WELLNESS
Majority Report: Do pass. Signed by 9 members: Representatives Cody, Chair; Morrell, Vice Chair; Barlow, Campbell, Green, Moeller, Pedersen, Schual-Berke and Seaquist.
Minority Report: Do not pass. Signed by 4 members: Representatives Hinkle, Ranking Minority Member; Alexander, Assistant Ranking Minority Member; Condotta and DeBolt.
Staff: Dave Knutson (786-7146).
Background:
Health care information companies purchase electronic records of prescriptions from
pharmacies and other sources and link them with information about doctors that are licensed
from the Physician Masterfile of the American Medical Association (AMA). The Physician
Masterfile contains information on virtually every physician in the United States, including
physicians who do not belong to the AMA. This information can then be sold to
pharmaceutical companies who may use it to target individual physicians using their personal
prescribing patterns. In 2005 the AMA received $44.5 million from sales of physician
prescription information from the Physician Masterfile. The AMA recently began a
prescribing data restriction program which allows physicians to prevent their prescribing data
from being released to pharmaceutical companies through an opt-out process.
Summary of Bill:
No person shall knowingly sell, disclose, or use regulated records that include prescriber
identifiable information to market or promote a prescription drug. A pharmaceutical
marketer that violates this prohibition is subject to a fine of up to $50,000 per violation. A
violation of this prohibition is also considered an unfair or deceptive act in trade or
commerce and an unfair method of competition for the purpose of applying the Consumer
Protection Act. Records held by an agency administering a state purchased health care
program that contain prescription information containing prescriber-identifiable data that can
identify a prescriber are exempt from disclosure under the Public Records Act.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) The practice of data mining violates the sanctity of the doctor-patient
relationship. Pharmaceutical companies use this data to manipulate doctors into prescribing
new drugs that are more expensive and could be harmful to their patients.
(Opposed) A federal judge has ruled this type of restriction is an unconstitutional violation of
a company's first amendment right to free speech. There are several inaccurate findings
contained in section 1. This legislation will not save any money for the state, and if passed,
could result in a federal lawsuit.
Persons Testifying: (In support) Brian Wicks, Washington State Medical Association;
Bruce Reeves, Washington Senior Lobby and American Association of Retired Persons,
Washington; Robby Stern, Washington State Labor Council; and Art Zoloth, Washington
Coalition for Prescribing Integrity.
(Opposed) Randy Frankel and Robert Hunkler, IMS Health; Julie Corcoran, Pharmeceutical
Research and Manufacturers of America; and Vicki Austin, Washington Biotechnology and
Biomedical Association.