HHS OIG Okays Use of Bulk Patient Assistance Programs at DSH Hospitals - September 8, 2009

The Department of Health and Human Services (HHS) Office of Inspector General (OIG) has issued a legal opinion determining for the first time that pharmaceutical “bulk replacement programs” do not violate the anti-kickback statute and would not result in penalties against a company operating such a program. The OIG issued its opinion in response to a pharmaceutical company’s proposal to provide free medications in bulk to DSH hospitals to replace medications provided to low-income patients without prescription drug coverage—eliminating the burden of individually enrolling patients into the company’s existing patient assistance program. This opinion could encourage more pharmaceutical companies to provide free drugs to large safety-net hospitals. For more information, please contact Stuart Gordon of SNPHA at stuart.gordon@snhpa.org or (202) 552-5851.