Are gift cards for transferring Rxs legal?

[MrBonita]

I remember when all the chains use to hand out gift cards when you transferred an rx. Now it seems they are giving discount coupons for transfers instead. If I remember correctly from pharmacy law. It is illegal to render kick backs for filling an rx. So from my understanding the gift card given for transferring an rx were illegal. It would make sense due to antitrust laws. It is completely unfair since an independent pharmacy does not have the power to give away money for a rx transfer. How can pharmacies stay profitable even handing out 25 dollars a transfer? When I do the research, the dispense fee never exceeds 10 dollars from an insurance company. I think this whole giving a bonus for filling and transferring an rx should be illegal since it creates unfair competition. It is also driving pharmacist nuts from having to do dozens of copies a day for people.

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[ChalupaBatman86]

Depends on what state you are in.

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[MindGeek]

It largely depends on state law. Some restrict it completely, some just on transfers, and some just on controlled substances.

In terms of federal law your should read this article [direct] [PubMed] on how incentives can reduce copays for Medicare/Medicaid patients within compliant loyalty programs.

 

[FarmD711]

How do you figure that independent pharmacies don't have "the power" to give away gift cards for transfers? What power? What does that even mean?


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[fcrc]

There are a lot of illegal things happening in pharmacy (i.e., vertical integration among payers and their one or two contracted specialty pharmacies), depending on how you look at it (i.e., technically the individuals or individuals acting on behalf of a company CHOSE the plan that limits pharmacy options, although it's broadly known a patient should be able to choose any pharmacy he/she wants). "Kickback" is probably too strong a word in this situation since they're only giving coupons and gift cards that don't translate to cash--unless someone sells those coupons and gift cards. In New Jersey and New York, transfer coupons and gift cards are illegal; and as an aside in Massachusetts, manufacturer coupons for prescriptions are also illegal. But there are many states who allow incentives for transfers. I personally prefer the stricter laws where coupons are not a thing...

 

[Caffeine QAM]

Rusty on pharmacy law as it pertains to business, but how is this considered a kickback? It's illegal to give kicbacks to prescribers for sending patients to certain pharmacies. To my knowledge, it's not illegal to give discounts or coupons to customers that transfer prescriptions to you.

 

[PharFromNormal]

Some of this goes along with how the prescription is being "paid" for. If it's a government prescription, the government wants the patient paying the copay they are charging without any (Medicare allows a small amount) indirect incentive going back to the patient. Network and plan designs are set up to drive certain population behavior (i.e drive patients to the pharmacies that will accept lower copays). I take it in commercial or cash business some boards of pharmacy may have stepped in on the bounds of safety if patients are just transferring prescriptions back and forth which could in itself lead to more transcription errors. Just provide over and above customer/patient service and have a nice clean store with attractive people and a drive thru and all the bells and whistles and you should be good.