HOUSE BILL REPORT
HB 2664
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 and use of prescriber-identifiable prescription data for marketing or promotional purposes.
Sponsors: Representatives Pedersen, Cody, Green, Morrell, Seaquist, Conway, Hasegawa, Hudgins, Upthegrove, Chase, Liias, Nelson, Loomis, McIntire, Barlow, Schual-Berke and VanDeWege.
Brief History:
Health Care & Wellness: 1/21/08, 1/28/08 [DPS].
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON HEALTH CARE & WELLNESS
Majority Report: The substitute bill be substituted therefor and the substitute bill 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 is 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 Substitute 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.
Substitute Bill Compared to Original Bill:
The reference to prohibited acts by a pharmaceutical marketer is deleted and replaced with a
prohibition against any person who sells, discloses, or uses regulated records with prescriber
identifiable information.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) Pharmaceutical marketers use prescriber identifiable information to tailor their
sales activity to specific prescribers. This activity interferes with the patient-prescriber
relationship. It also adds costs to the health care system by increasing prescriptions for
newer, more expensive drugs.
(Opposed) If prescriber identifiable information cannot be collected, doctors who specialize
in certain conditions may not have access to the most current information. This type of
legislation has been found to violate the U.S. Constitution by federal courts. This legislation
is also unconstitutional.
Persons Testifying:
(In support) Lonnie Johnson Brown and Ruth Sheurar, Healthy Washington; Cynthia Markus,
Washington State Medical Association; and Jeff Huebner, Coalition for Prescribing Integrity.
(Opposed) Jeff Gombosky, Amgen; Amber Carter, Association of Washington Business;
Mike Ryherd and Robert Hunkler, IMS Health Incorporated; and Cliff Webster,
Pharmaceutical Research and Manufacturers of America.