Nevada Governor Brian Sandoval recently signed into law a drug price transparency bill, SB 539. The law primarily concerns price transparency measures for prescription diabetes drugs, but also imposes reporting requirements on nonprofit patient advocacy groups and pharmaceutical sales representatives that we’ve yet to see enacted in any other state.
First, the law requires nonprofit patient advocacy groups to annually compile a report disclosing any payment, donation, subsidy or anything of value received from a drug manufacturer, insurer, health benefit plan, participating public agency, pharmacy benefit manager or a trade group representing any of those entities during the preceding calendar year. The report must include: 1) the amount of each contribution; 2) the source of each contribution; and 3) the percentage of the advocacy group’s annual gross income attributable to such contributions. A patient advocacy group must either post the annual report on its website, or, if the group does not maintain a website, submit the report to the Department of Health and Human Services. The Department will then post the report on its website. If a patient advocacy group fails to comply with the law’s reporting requirements, the Department may impose a penalty of not more than $5,000 for each day of such failure.
Second, the law requires manufacturers of prescription drugs to provide to the Department a list of each pharmaceutical sales representative who markets prescription drugs on behalf of the manufacturer. Manufacturers must update the list at least annually. A person who is not included on a current list cannot market prescription drugs on behalf of the manufacturer. Each year, sales representatives must submit a report to the Department. This report must include a list of providers, pharmacies, medical facilities and persons licensed under the Nevada insurance code for whom the sales representative provided: 1) any compensation with a value that exceeds $10; or 2) total compensation with a value that exceeds $100 in the aggregate. The report must also include the name and manufacturer of each prescription drug for which the pharmaceutical sales representative provided a free sample. If a pharmaceutical sales representative fails to comply with the law’s reporting requirements, the Department may impose a penalty of not more than $500 for each day of such failure.
The Department will analyze the information submitted by pharmaceutical sales representatives on an annual basis and compile a report. The Department will then submit the report to the Governor and, in even-numbered years the legislature. This report must be compiled and disseminated so that it does not reveal the identity of any person or entity.