Download - Rx15 le wed_1115_1_meinhofer_2simon-worthy

Transcript

Law Enforcement Track:Lessons from the Supply Side

Presenters:•Angélica Meinhofer, MS, Graduate Student, Department of Economics, Brown University•Kyle Simon, MS, Director of Policy and Advocacy, Center for Lawful Access and Abuse Deterrence (CLAAD)•Stacey L. Worthy, JD, Associate Attorney, DCBA Law and Policy

Moderator: Frank Rapier, Executive Director, Appalachia High Intensity Drug Trafficking Area (HIDTA)

Disclosures

• Angélica Meinhofer, MS, has disclosed no relevant, real or apparent personal or professional financial relationships with proprietary entities that produce health care goods and services.

• Stacey L. Worthy, JD, has disclosed no relevant, real or apparent personal or professional financial relationships with proprietary entities that produce health care goods and services.

• Kyle Simon, MS, has disclosed no relevant, real or apparent personal or professional financial relationships with proprietary entities that produce health care goods and services.

• Frank Rapier has disclosed no relevant, real or apparent personal or professional financial relationships with proprietary entities that produce health care goods and services.

Disclosures

• All planners/managers hereby state that they or their spouse/life partner do not have any financial relationships or relationships to products or devices with any commercial interest related to the content of this activity of any amount during the past 12 months.

• The following planners/managers have the following to disclose:– Kelly Clark – Employment: Publicis Touchpoint Solutions;

Consultant: Grunenthal US– Robert DuPont – Employment: Bensinger, DuPont &

Associates-Prescription Drug Research Center– Carla Saunders – Speaker’s bureau: Abbott Nutrition

Learning Objectives

1. Evaluate the impact of Rx drug supply-side interventions caused by enforcement and legislative interventions in Florida

2. Contrast the impacts of Rx drug and illicit drug supply-side interventions.

3. Describe the problem of Rx drug fraud, abuse and related issues.

4. Outline strategies for protecting consumers from black-market Rx drugs.

Law Enforcement Track: Lessons from the Supply Side

Angélica Meinhofer

Ph.D. Candidate, Brown University

Are We Fighting the Right War? Estimating the Effect of Prescription Drug Supply-Side

Interventions

Disclosure Statement

Angélica Meinhofer, Ph.D. Candidate, has disclosed no relevant, real or apparent personal or professional financial relationships with proprietary entities that produce health care goods and services.

Learning Objectives

• Evaluate the impact of Rx drug supply-side interventions caused by enforcement and legislative interventions in Florida.

• Contrast the impacts of Rx drug and illicit drug supply-side interventions.

• Describe the problem of Rx drug fraud, abuse and related issues.

• Outline strategies for protecting consumers from black-market Rx drugs.

Motivation• After marijuana, prescription drugs are the most

abused controlled substances in the United States (NSDUH, 2013)

• Overdose deaths involving opioid pain relievers (OPR) increased by 313% from 4,030 in 1999 to 16,651 in 2010 (CDC, 2013)

• OPR deaths now exceed those involving heroin and cocaine combined (CDC, 2011)

Motivation

• OPR abuse imposes considerable societal costs

• In 2007 these costs amounted to $55.7 billion (Birnbaum et al., 2011)– 46% workplace– 45% health care– 9% criminal justice

Overview

• Can interventions that aim to reduce drug availability by targeting the supply-chain be effective against prescription drug abuse?

Broader Questions

• Why should the use of controlled substances be regulated?

• How should the use of controlled substances be regulated?

Why should the use of controlled substances be regulated?

• Market Failures

– Externalities (e.g. Neonatal Abstinence Syndrome)

– Imperfect information (e.g. Risk perception)

– Internalities (e.g. Time inconsistent preferences)

How should the use of controlled substances be regulated?

• Controlled Substances Act (1970)– Register with the Drug Enforcement

Administration– Keep records of inventories and transactions

involving controlled substances– Divide substances into five schedules• Current accepted use in medical treatment• Abuse potential• Likelihood of dependence when abused

How should the use of controlled substances be regulated?

Interventions

• Revoking or suspending a supplier's prescription drug dispensing privilege

Questions of Interest

• Can supply-side interventions reduce drug availability?

• Can supply-side interventions improve public health?

• What mechanisms reinforce or offset supply-side interventions’ effectiveness?

Meanwhile, in Florida...

• Once the epicenter of the prescription drug abuse epidemic

• Oxycodone was the drug on demand (in 2009, 44% of all oxycodone 30mg products were distributed to Florida, DEA 2012)

• Practitioners operating from rogue pain management clinics or “pill mills" were the main source of diversion

Meanwhile, in Florida...

Source: ARCOS

Interventions

• By mid 2010 and throughout 2011, the state of Florida implemented a series of supply-side interventions to address prescription drug abuse– Enforcement: Operation Pill Nation– Legislative: Dispensing Practitioner Laws

• SB 2272 (Oct. 2010): Can dispense up to 72-hour supply of CS II-V

• HB 7095 (July 2011): Cannot dispense CS II-III

*Note: Prescription Drug Monitoring Program; Changes in Oxycontin formulation

Interventions

Interventions

Source: DEA

Data Sources

• Total Quantities (DEA’s Automation of Reports and Consolidated Orders System)

• Street Prices (StreetRx.com & Bluelight.org)

• Overdose Deaths (Florida’s Medical Examiners Commission)

• Pain Clinic & Pharmacy Licensure (Florida Department of Health)

Contributions

Explore supply-side interventions in a new context: the case of prescription drugs – Previous studies analyzed the effects of supply-side

interventions on illicit drug availability – Results have been somewhat mixed, with most finding no

effects and others finding modest or temporary effects – Previous findings may not generalize to controlled

prescription drugs • Accepted use in medical treatment• Legally produced, prescribed and dispensed• Retail suppliers include healthcare providers • End-consumer includes legitimate users

Contributions • Study a particular type of supply-side intervention that

consists of revoking a supplier’s prescription drug dispensing privilege

• Rely on novel, high frequency administrative data, and a quasi-experimental research design

• Tie drug availability to health outcomes

• Foreshadow potential threats and benefits of re-scheduling/legalizing controlled substances

Preliminary Results

• Post-period begins after Q3 2010• Difference in differences type of approach• Divide drugs into groups based on their relation to

Oxycodone – Oxycodone– Complements (Alprazolam, Diazepam) – Substitutes (Hydrocodone, Hydromorphone, Morphine,

Oxymorphone, Codeine) – NTP (Methadone, Buprenorphine) – Stimulants (Amphetamines)– Illegal drugs (Heroin, Marijuana, Cocaine)

Total Quantities

Street Prices

Source: Bluelight, StreetRx

Total Quantities by Provider - Practitioners

Total Quantities by Provider - Pharmacies

Total Quantities by Provider - Hospitals

Pain Clinic Closures

Pharmacy Openings

Total Deaths

Total Deaths

Conclusions • PRELIMINARY FINDINGS suggest that in the context of

prescription drugs: – Supply-side interventions reduced drug availability and

increased street prices – No evidence of a supply recovery– Supply-side interventions reduced drug abuse/

improved public health (despite substitution to other drugs)

– Some suppliers changed their behavior in response to the interventions and according to economic incentives

Lessons from the Supply Side

Stacey Worthy & Kyle Simon

Disclosure Statement

• Stacey L. Worthy has disclosed no relevant, real or apparent personal or professional financial relationships with proprietary entities that produce health care goods and services.

• Kyle Simon has disclosed no relevant, real or apparent personal or professional financial relationships with proprietary entities that produce health care goods and services.

Disclosure Statement

• The Center for Lawful Access and Abuse Deterrence (CLAAD) receives funding from businesses in the health care industry that share CLAAD’s mission to reduce prescription drug fraud, diversion, misuse, and abuse while advancing consumer access to high-quality health care. CLAAD’s funders include pharmaceutical companies, treatment centers, and laboratories.

• CLAAD is managed by DCBA Law & Policy (DCBA). DCBA also provides legal and policy counsel to professionals and businesses whose activities align with CLAAD’s mission. To avoid conflicts of interest, DCBA adheres to the District of Columbia Rules of Professional Conduct §§ 1.7-1.9.

Learning Objectives

1. Describe Rx drug fraud, abuse, and related issues

2. Outline strategies for protecting consumers

from black market Rx drugs

Preview

• Overview of the issues

– Terminology, introduction to the Rx epidemic and biologics

– Recent examples of diversion

– Parallels to the Rx abuse epidemic

• Federal and state laws, issues, and policies• Recommendations• Conclusion

Terminology

• Policy meeting: – Washington, DC, 10/24/15– 18 organizations

• Black market– Counterfeits – Diverted

• “Gray market” FDA-approved drugs• “Reimported” foreign counterparts of FDA-approved drugs

– FDCA terms: misbranded, non-FDA-approved, adulterated

Prescription Drug Abuse

• 22,767 Americans died of prescription drug-related overdoses in 2012

• Prescribers are gatekeepers in supply chain– Educate unintentional/negligent actors– Enforce against profiteers/rogue prescribers/pill mills

• Reduce supply of medications available for abuse– Abuse-deterrent– Non-controlled substances

Biologics

• Made through biological process• Can treat cancer, Hep C, inflammatory pain,

migraines, etc.• At center of national and state debates– Nomenclature (follow-ons are not identical)– Substitution

• Highly sought on black market– New treatments and cures– Lack of info among providers & patients– Opportunity to profit

Threats to Consumers

• Unique risk for biologics products– Environment and storage– Lack of active ingredient

• Unapproved new drugs and misbranded drugs (FDCA): – Diverted drugs: FDA-approved medications flowing to

unauthorized purchasers– Foreign counterparts: wrong label information– Counterfeits: road paint, antifreeze, lead, rat poison

• Access restrictions and lack of awareness– Unlike w/Rx abuse, consumers are unwitting

victims

Increase in Diversion• Feb. 2015: Dr. ordered to pay $500k; administered

misbranded cancer drugs• Jan. 2015: MO man received 30 years in prison;

smuggled misbranded cancer drugs• Dec. 2014: 14 arrested; adulterated drugs caused

meningitis outbreak • July 2013: TN doctors ordered to pay $4.25m;

administered misbranded cancer biologics• 2004-2008: 31 arrested & 29 convicted; purposely

injected counterfeit wrinkle drugs

Motives and Methods

• Motives:– Profit– Misguided attempts to save patients money– Shortages

• Methods:– Samples– Non-profits and exports– Theft– Hoarding– Online pharmacies

• 97% violate U.S. laws and regulations

Parallels to Rx Abuse

• Diversion from intended sale and use• Negligent vs. intentional wrongdoing• Often the same “dirty docs” profiteering at

patients’ expense

• Often overlap with Rx abuse– Feb. 2015: Man sentenced to 18 mos.; sold

counterfeit testosterone injectable to MLB players

Applicable Federal Laws

• Food, Drug & Cosmetic Act• Federal Criminal Health Care Fraud Statute• False Claims Act• Prescription Drug Marketing Act• Drug Quality & Security Act of 2013• Others: Conspiracy, Fraud, False Statements,

etc.

State Law: Maine• Maine Pharmacy Act Amendments (MPAA)

(Me. 32 Rev. Stat. § 13731) – Residents import foreign drugs– Permitted: Canada, UK, Australia, New Zealand– Reality: Turkey, India Israel, Costa Rica, Vanuatu– Proliferation using “medical marijuana” model

MPAA Struck Down

• Oct. 2014: 1st online pharmacy launched• Jan. 2015: Maine res. ordered to return meds• Feb. 2015: Struck down (Oullette v. Mills)– Preempted: The MPAA’s “singling out of certain

countries from which pharmaceuticals may be imported compromises the tightly regulated structure set up by the FDCA and the federal government’s ability to ‘speak with one voice’ when it regulates foreign commerce.”

– Distinguished from marijuana cases – savings clause

Federal Supremacy

• Gonzalez v. Raich: Fed. gov’t has exclusive right to reg. interstate commerce

• Ouellette v. Mills: Fed. gov’t regulates field of pharmaceutical importation

• State-specific drug laws unlikely• Change status quo through federal legislation– Senator McCain: “This decision highlights the importance

that Congress act to change federal law. [I] continue[] to believe that Americans ought to have the right to safely import prescription drugs from Canada, where cheaper alternatives come with the same safety standards and the same dosages as those sold in the U.S.”

Federal Legislation

• Safe and Affordable Drugs from Canada Act(S.122) introduced Jan. 8, 2015

• Transnational Drug Trafficking Act (S.32) introduced Jan. 6, 2015

• Personal Drug Importation Fairness Act(H.R.3715) died in previous Congress

• Gray Market Drug Reform and Transparency Act (H.R.1958) died in previous Congress

Leadership in California

• SB600: foreign drugs lacking FDA approval or illegally obtained are misbranded

• Illegally obtained: outside of supply chain• Misdemeanor offense– Imprisonment up to one year – Fines up to $10,000 per occurrence

• Advances consumer safety & respects federal supremacy

National Debate: Importationof Foreign Drugs

• Pros:– Cost in U.S. vs. abroad– U.S. subsidizes the rest of the world– “Obscene” pharmaceutical profits

• Cons:– No U.S. oversight to protect health and safety;

• Populations with life-threatening diseases especially at risk

– Impact on innovation and new cures• Return on investment in prescription drug mark is falling

– “Obscene” third-party payer profits

National Debate: Drug Cost

• Stable growth • Competition reduces costs– Brand and generic medications

• Expanded coverage• Reducing costs due to foreign subsidies

requires major overhaul of system

Recommendations

• Prescriber Education• Professional licensing boards

– Rehabilitation– Sanctions

• Criminal enforcement (KY case)– Law enforcement– Prosecutors

• Implement professional best practices• Consumer awareness

– Risks, pricing, and research and development• Engage state leaders

– State legislation (CA model)

Professional Education

• FDA Know Your Source• Mandatory/voluntary professional education– Laws– Standard of care (diagnosis, risks, and benefits)– Whistleblower protections and incentives

• Professional society conferences and publications

• Malpractice insurers• Third-party payers

Consumer Awareness

• Obtain and use Rx drugs as directed

• Avoid diversion: safe purchase, storage, and disposal

• Drugs.com pill identifier• NABP VIPPS• Whistleblower tip lines• 1-888-INFO-FDA (1-888-463-6332)• NADDI Rx tip form: http://rxtip.org/

Conclusion

• Contact us:– Stacey Worthy

[email protected]• linkedin.com/in/staceyworthy

– Kyle Simon• [email protected]• linkedin.com/in/kyleasimon

– DCBALaw.com• Facebook.com/DCBALaw• Twitter.com/DCBALaw

• Thank you

Law Enforcement Track:Lessons from the Supply Side

Presenters:•Angélica Meinhofer, MS, Graduate Student, Department of Economics, Brown University•Kyle Simon, MS, Director of Policy and Advocacy, Center for Lawful Access and Abuse Deterrence (CLAAD)•Stacey L. Worthy, JD, Associate Attorney, DCBA Law and Policy

Moderator: Frank Rapier, Executive Director, Appalachia High Intensity Drug Trafficking Area (HIDTA)