DATA MINING LAW UPHELD AS CONSTITUTIONAL
April 24, 2009: The federal court today upheld Vermont's Pharmaceutical Data Mining Law as constitutional, warding off an attack on the law by a group of data miners and PhRMA, the pharmaceutical manufacturers association. The court found that the Vermont law reasonably regulates the information that data mining companies obtain from individual Vermonters' prescription information. This data is then compiled and sold to pharmaceutical companies so that their salespeople can target individual physicians for the marketing and sale of new prescription drugs. The new law would allow physicians to protect the disclosure of this information for marketing purposes.
The Legislature's goal in enacting the data mining law was to contain health costs by ensuring that physicians focused on generic alternatives where appropriate. The Court found that even a one percent change in prescribing practices could result in a two million dollar cost savings for Vermonters. The lawsuit alleged that the law violated the data mining companies and pharmaceutical companies right of free speech. The District Court soundly rejected that contention, finding instead that the law reasonably regulated commercial speech. Attorney General William H. Sorrell embraced the decision as a vindication of the Legislature's courageous efforts to curb the mounting costs of health care in this state. "It is a testament to our Legislature and to the courage of this small state that we continue to lead the way on important public health issues."
For a copy of the opinion, check Attorney General’s website at: http://www.atg.state.vt.us/upload/1240579961_IMS_Opinion.pdf.
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