Reed Smith Client Alerts

On January 16, 2018, New Jersey enacted a new regulation which regulates the payments and items of value that prescribers can accept from pharmaceutical manufacturers. The regulation limits acceptance by prescribers of such items that do not clearly advance disease or treatment education. More notably, the regulation caps, at $10,000 per calendar year, a prescriber’s collective compensation from all pharmaceutical manufacturers for certain bona fide services. It also imposes a $15 cap per meal on meals that may be accepted by a New Jersey prescriber. Lastly, the regulation places certain disclosure requirements on prescribers. The regulations do not include specific penalties for noncompliance by prescribers.

Authors: Kevin M. Madagan Katie C. Pawlitz Betty Yan Julia Lake Wayne R. Janke

Type: Client Alerts

Introduction

On January 16, 2018, New Jersey enacted a new regulation, N.J.S.A. § 13:45J, titled “Limitations on Obligations Associated with Acceptance of Compensation from Pharmaceutical Manufacturers by Prescribers.” According to the state, the new regulation, which regulates the payments and items of value that prescribers1 (e.g., physicians, physician assistants, advanced practice nurses, and dentists) can accept from pharmaceutical manufacturers2, is intended to ensure that relationships between health care providers and industry do not interfere with a prescribers’ independent professional judgment. The new regulation applies to all contracts entered into on or after January 16, 2018.