State Laws Have Teeth

In 1993, Minnesota became the first state to limit gifts and compensation provided by life science companies to healthcare providers. Now in 2018, with the advent of the Insys case, Minnesota is moving to enforce its statute. Although state law actions have been limited, this case is a reminder the state laws do have teeth requiring vigilance on the part of compliance professionals.

Minnesota was the first. In 1993, the state broke new ground by restricting gifts to healthcare practitioners and requiring pharmaceutical companies to disclose certain payments made to state practitioners. The legislature passed the law as “an attempt to cut back on the practice of some drug companies of giving doctors free gifts and offering all-expense paid seminars on new drugs at prime vacation spots.” What followed was the avalanche of state laws that finally culminated in the Federal Physician Payments Sunshine Act in the Affordable Care Act, what is now referred to by the handle – “Open Payments.”

To read the full article, visit Life Science Compliance Update.