With less than a year into New Jersey’s “gift” ban regulation, Attorney General Gurbir Grewal has signaled that changes to an aggressive regulation enacted on January 15, 2018 are forthcoming. As we reported back in February, modifications were already being discussed in the early days by Governor Phil Murphy’s Administration. The proposed rule now confirms these rumors. It will be formally published on August 6th followed by a 60-day comment period. Here’s what we know.
“Unrealistic Limitations”
The first two pages of the proposal include a letter written in May by Attorney General Grewal to Members of State Board of Dentistry. In the letter, the Attorney General agreed that the $15.00 limit on meals is “unrealistic” and “has served to stifle valuable education gatherings at which prescribers obtain scientific, evidence-based data and important information about developments concerning treatment options to address a variety of disease states.”
Although the proposal was originally intended to be submitted to the Office of Administrative law on July 6, 2018, the Attorney General’s Acting Chief of Staff and Director of Legislative and Regulatory Affairs confirmed that the proposal will be formally published the first week of August. The rule is expected to be published in the NJ Register on Monday, August 6, with a due date for comments Friday, October 5th, 2018.
What changes are being proposed?
- The cap on meals for educational events would be eliminated altogether, even if supported by a manufacturer, provided the meals facilitate the educational program to maximize prescriber learning, including information about disease states and treatment approaches.
- While the Attorney General does not seek to make modifications to the $10,000.00 annual cap on any contracts and payments entered into by prescribers directly with the pharmaceutical industry, the proposal would include language that the meals provided at educational events or promotional activities are not subject to the $10,000.00 cap.
- For promotional activities, the cap on breakfast and lunch would remain at $15.00, the cap on dinners would be increased to $30.00. The cap would also include a mechanism to adjust the dollar limits based upon changes in the Consumer Price Index. The proposal would specify that the meal cap does not include the cost of standard delivery, service, or facility rental fee charges, or of tax.
- The term “prescriber” would specify that the rules apply to those who have an N.J. active license (i.e., prescribers who practice in N.J. or who have patients in N.J.). “Prescribers” include physicians, podiatrists, physician assistants, advanced practice nurses, dentists, and optometrists.
What’s Next?
As stated above, the proposal provides a 60-day opportunity for the industry to provide much-needed comments to the Attorney General. While the elimination of the meal cap on educational events is a much-welcomed change, the proposed increase to dinners is still “unrealistic.” We hope after a review of the comments a compromise can be made.