Alerts3.7.23

HHS-OIG Foregoes Sanctions on Drug Manufacturer for Providing Free Drugs to Patients Waiting for Insurance Authorization

medical device 4

Highlights

HHS-OIG declined to impose administrative sanctions on a drug manufacturer for providing a drug at no charge, for a limited time, to patients experiencing delays in their insurance approval process

The agency determined the arrangement posed little risk of overutilization or undue influence on prescribing patterns because healthcare providers would be unaware when prescribing that a patient may receive the drug at no charge

This seems to be part of a trend of leniency by the agency when there is no risk of overutilization or undue influence


The Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG) issued Advisory Opinion No. 23-02 on Feb. 28 regarding sanctions against a manufacturer for its program that provides a particular specialty drug for free, for a limited time, to patients who experience a delay in their insurance approval process for the manufacturer's drug. 

Keep Up to Date in a Changing World

Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you’re interested in learning more about.
Subscription Banner