Vouchers and Discounts and Rebates…Oh My!

Massachusetts has finally done it! On July 8, 2012, the Governor of Massachusetts signed House Bill 4200, which amends Section 3 of Chapter 175H of the Commonwealth's General Laws. This section of the law generally prohibits any person from soliciting, receiving, or offering any remuneration when a payment is or may be made in whole or in part by a health care insurer. This general prohibition prevented the distribution discounts, rebates, and vouchers in Massachusetts.

HB 4200 amends this section of the law and exempts from the general prohibition “any discount, rebate, product voucher or other reduction in an individual’s out-of-pocket expenses, including co-payments and deductibles, on: (i) any biological product… or (ii) any prescription drug provided by a pharmaceutical manufacturing company…that is made available to an individual if the discount, rebate, product voucher or other reduction is provided directly or electronically to the individual or through a point of sale or mail-in rebate, or through similar means.” Pharmaceutical manufacturing companies may not, however, exclude or favor any pharmacy in the redemption of discounts, rebates, vouchers, or other expense reduction offers to consumers.

HB 4200 prohibits a pharmaceutical manufacturing company from providing "any discount, rebate, product voucher or other reduction in an individual's out-of-pocket expenses, including copayments and deductibles, for any prescription drug that has an AB rated generic drug equivalent as determined by the United States Food and Drug Administration.”

The amendments to section 3 of Chapter 175H are effective as of July 1, 2012.

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