Update on Rule Limiting Compensation from Pharma to Prescribers

    By: Melinda Martinson, Esq. on Jan 31, 2019

    Members have asked about the status of the proposed amendments to the rule limiting compensation from pharmaceutical manufacturers to prescribers. We understand that the Division of Consumer Affairs intends to adopt the amended rule in the first quarter of 2019. This is due to the number of comments which were filed on the amended rule and require a response. MSNJ filed comments on December 5, 2018, along with a variety of stakeholders, including businesses and at least one hospital system.  Among other things, we sought affirmation that speaker bureau activity is in a safe harbor.

    We believe that our summary of the proposed rule is accurate and that physicians, who are complying with the proposal’s improved provisions, will not be subject to enforcement. That said, because the rule contains annual caps on compensation, many of our members remain concerned. Moreover, many pharmaceutical companies are not willing to renew contracts for speaker bureau activity or consulting agreements until the rule is final. Please write to if you are being negatively impacted by the pending rule. 

    We believe that compensation for educational events, including speaker bureau presentations, is not subject to the cap. The Attorney General indicated in his May 2018 letter that the state was persuaded that peer to peer educational events served a legitimate purpose and should not be curtailed. Consequently, the AG proposed eliminating the limit on the cost of meals and removed the cost from the annual cap.


    Released: January 31, 2019, 1:21 pm
    Keywords: Announcements

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