Medicare Compliance & Reimbursement

Baucus, Grassley asking questions about 'educational grants.'

For years, major drug companies have been giving state governments and other organizations "educational grants," ostensibly to be used to promote good health and
to inform the public of treatment options that they may not have known about.
 
Now, two senators want drugmakers to prove that these grants are legit instructional tools - and not promotional campaigns disguised in grant garb.
 
On June 9, Sens. Chuck Grassley (R-IA) and Max Baucus (D-MT) sent a letter to all of the major drug companies asking for more data about their educational
grants. The letter aims to find out which drugmakers are on the up-and-up with their educational grant programs.
 
"I support drug companies giving back to the community through grants. However, I am concerned that some grants may be for purposes other than education," said Baucus, ranking member of the Senate Committee On Finance, which handles the oversight duties for Medicare and Medicaid.
 
Both senators have grave concerns about how much Medicare and Medicaid money will soon start pouring into pharmaceutical companies' pockets: Estimates have the price tag for prescriptions in 2006 hitting around $100 billion.
 
"We need to know how this behind-the-scenes funneling of money is influencing decision-makers; these decisions result in the government spending billions of
dollars on drugs," explained Grassley, who chairs the Senate Committee On Finance.
 
"Marketing practices that increase the rates at which drugs are prescribed ... are of concern because they have the potential to increase program costs and may encourage the use of newer, more expensive drugs that have not been proven superior to existing treatments," the letter reads.
 
Educational grants play an active role in ensuring that providers are well informed about the benefits of medications, says Jeff Trewhitt of the Pharmaceutical
Manufacturers and Research and Manufacturers of America. Trewhitt did note that each pharmaceutical company makes its own decisions as to how its grants are
determined and targeted. Senators Want Companies To Name Names  Among the information requested in the letter:
  Names and contact info for all people involved in evaluating, approving and awarding educational grants.
  A copy or description of the company's policy on educational grants.
  A list of factors that lead to a provider winning an educational grant.
  Total amount of educational grants the company disbursed in FY 2003 and 2004.