Pharmaceutical Regulatory and Compliance Congress
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1 Pharmaceutical Regulatory and Compliance Congress Dean Forbes, Esq. Director of Corporate Privacy Global Compliance and Business Practices November 16,
2 IPPC What is the IPPC? The International Pharmaceutical Privacy Consortium (IPPC) has membership is an association with membership from 17 international pharmaceutical companies. The IPPC provides a forum for dialogue on approaches to privacy and information security issues facing the pharmaceutical industry, and to develop strategies and tools for managing and protecting the privacy of personal data. 2
3 Three Perspectives on Privacy Consumer: How do I know that my doctor / pharmacist are treating information about me appropriately? If I provide my personal information to manufacturer X, can I trust manufacturer X to use my information appropriately? Research participant: If I take part in this research project, can I be sure that health information about me will be treated confidentially? Chief Privacy Officer: How do I ensure that my company is compliant with the myriad of federal and state privacy laws? 3
4 Consumer s Perspective 4
5 GAO Report: Public Ill-Informed Government Accountability Office issued report in September on First-Year Experiences under the Federal Privacy Rule Report concludes that the general public is not well informed about their rights under the HIPAA Privacy Rule Nearly 2/3 of HIPAA complaints received by OCR were found to fall outside scope of Privacy Rule 35% of complaints involved accusations of actions that are not prohibited 20% involved entities that are not covered entities Covered entity privacy notices are long and confusing 5
6 NCVHS Hearings National Committee on Vital and Health Statistics charged with advising Secretary of HHS on implementation of HIPAA Privacy Rule NCVHS Subcommittee on Privacy and Confidentiality held hearings in July 2004 on effect of Privacy Rule on marketing Findings conveyed in September 1 letter to HHS Secretary 6
7 NCVHS Hearings: HPP Witness Witness of Health Privacy Project testified that marketing provisions of Privacy Rule are insufficient in following respects: 1. Retail pharmacies are not required to inform their customers when pharmacies are paid by drug manufacturers to send letters and other communications 2. Some product promotion materials are mailed to individuals without any envelope, thereby disclosing information about the individual s diagnosis 3. When a covered entity receives compensation from a third party to promote its products or services, this communication should be considered marketing rather than treatment or case management communications 7
8 NCVHS Letter NCVHS is concerned that PHI is being used to target individuals for the sale of specific products and services without any disclosure of the commercial relationships of the covered entity and the commercial entity. We believe that the Department should explore whether to require the disclosure of the financial and other arrangements when covered entities and commercial entities collaborate to approach individuals with recommendations that they utilize specific health care products and services. 8
9 NCVHS Letter NCVHS is concerned that in the course of some commercial activities by covered entities and their business associates that target particular individuals through the use of their PHI, diagnostic or other information may be disclosed. We note that other provisions of the Privacy Rule require covered entities to adopt measures to prevent the incidental disclosure of PHI to other patients and members of the public in the treatment setting and when communicating PHI. We believe the Department should explore whether to require that covered entities and their business associates take specific measures to prevent the incidental disclosure of PHI in communications promoting products and services. 9
10 NCVHS Letter NCVHS is concerned that covered entities have no requirement to afford individuals an opportunity to opt out of receiving communications regarding products and services. We note that designing such a requirement would be complicated by the need for covered entities to convey health information as part of their legal standard of care. We believe that the department should explore whether it would be feasible and desirable to permit individuals to opt out of further communications regarding products and services. 10
11 Research Participant s Perspective 11
12 Recommendations of HHS Secretary s Advisory Committee on Human Research Protections Human subjects research is a complicated endeavor, governed by Common Rule, FDA regulations and now HIPAA Existing regulations and policy (pre-hipaa) required the protection of subjects privacy In some areas, the application of HIPAA to the research context has unnecessarily complicated research activities Cost of research should not be increased unless meaningful protections are achieved Complexity adds to confusion, both to subjects and researchers HHS should consider the overall welfare and interests of subjects, not simply their privacy interests alone and in the abstract, when revisiting these aspects of HIPAA 12
13 Responding to Consumers: State Privacy Legislation 13
14 States Proposing Pharma Privacy Legislation ( ) California Florida Illinois Massachusetts Nebraska New Hampshire New York North Carolina North Dakota Texas Washington Wisconsin 14
15 Examples of Impact of State Privacy Laws on Pharmaceutical Company Activities Extends HIPAA-Like Requirements (e.g., notice, access, amendment) Limits Disclosure by Pharma Impacts Clinical Research Impacts Pharma DTC Impacts Pharma Programs Run Through Pharmacies & Health Plans Impacts Contact with Physicians 15
16 Extends HIPAA-Like Requirements (e.g., notice, access, amendment) Example: Adopts HIPAA Privacy Rule requirements but changes definition of covered entity (a) Notwithstanding any general or special law to the contrary, the Department of Public Health shall adopt 45 CFR Parts 160 and 164, as promulgated on August 14, 2002, in their entirety, with the changes specified in this act. (b) Definitions. is amended as follows: Covered entity means any person who, for commercial, financial or professional gain, monetary fees, dues, or on a cooperative, non-profit or pro-bono basis, engages, in whole or in part, and with real or constructive knowledge, in the practice of assembling, collecting, analyzing, using, evaluating, storing, or transmitting protected health information. 16
17 Limits Disclosure By Pharma Example: Limits disclosure by pharma; prohibits conditioning of treatment on patient signing an authorization (a) A pharmaceutical company may not require a patient, as a condition of receiving pharmaceuticals, medications, or prescription drugs, to sign an authorization, release, consent, or waiver that would permit the disclosure of medical information that otherwise may not be disclosed. (b) A pharmaceutical company may not disclose medical information provided to it without first obtaining a valid authorization from the patient. 17
18 Impacts Clinical Research Example: Requires anyone who uses or discloses health information for research to obtain authorization (a) Covered entity means any person who collects or maintains protected health information. (b) A covered entity may disclose protected health information to a person performing health research, regardless of the source of funding of the research, for the purpose of conducting health research, only if the person performing health research has obtained the express written authorization of the individual. 18
19 Impacts Pharma DTC Example: Requires anyone who uses or discloses health information for marketing to obtain authorization (a) Covered entity means any person who collects or maintains protected health information. (b) A covered entity must obtain express written authorization to use or disclose protected health information for marketing 19
20 Impacts Pharma Programs Run Through Pharmacies and Health Plans Example: Defines marketing as making a communication about a product in exchange for remuneration (a) Marketing means to make a communication about a product or service to encourage recipients of the communication to purchase or use the product or service, but does not include communications made as part of the treatment of a patient for the purpose of furthering treatment unless the covered entity receives direct or indirect remuneration from a third party for making the communication. (b) A covered entity shall not use protected health information in its possession to provide marketing services to any entity. 20
21 Impacts Contact with Physicians Example: Prescriber Data Opt-Out List (a) Prescribing data of a physician means information that sets forth a prescription written by a physician in combination with any item that individually identifies the physician, including a unique identifier assigned for tracking purposes. (b) A person may not transmit, sell, or release to a third party, in exchange for remuneration, any prescribing data of a physician, if the physician has placed his or her name on the list described in subdivision (c). (c) The Attorney General shall maintain a DO NOT USE list on its Web site for physicians licensed in the state to place their names. The Attorney General may contract with a third party for the creation or maintenance of the list. 21
22 Chief Privacy Officer s Perspective 22
23 Privacy Is a Challenge Requires understanding how personal data is used within the corporation Pharma companies communicate with consumers through a variety of media and for a variety of purposes. Uses and disclosures of personal information vary by program. Requires understanding and keeping up-to-date with myriad of privacy regulations and guidance US federal privacy laws State privacy laws HIPAA COPPA California TCPA TSR Texas CAN-SPAM Consumer protection laws Foreign laws FTC EU Data Protection Directive State AGs EU Member State Laws Canada PIPEDA Etc. 23
24 Current US Privacy Environment: Snapshot Stringent marketing requirements effective in Texas and California. States continue to consider legislation to close HIPAA gaps and require opt-in for marketing Continued interest by DOJ in privacy practices of pharma companies Criticism of pharma industry practices by some consumer privacy groups. Litigation pending 24
25 Pharma Privacy Challenges Global organizations Complex data Pharmacovigilance Medical research Complex business operations Public and regulatory mistrust of industry 25
26 Current Environment Governments around the world beginning to draft and enact comprehensive privacy and data protection laws to: remedy privacy violations that occurred under previous authoritarian regimes promote electronic commerce by setting up uniform rules promote consistency among privacy laws of trading partners Conflicting national privacy laws, however, continue to make compliance and global data transfers challenging 26
27 European Union Myriad of national laws and interpretations No one compliance option resolves all issues EU expansion in May 2004 Increased enforcement a reality 27
28 Asia Pacific Economic Cooperation (APEC) Australia Brunei Darussalam Canada Chile People's Republic of China Hong Kong, China Indonesia Japan Korea Malaysia Mexico New Zealand Papua New Guinea Peru Philippines Russia Singapore Chinese Taipei Thailand United States Vietnam 28
29 APEC Privacy Standard Privacy Subgroup of the E-Commerce Steering Committee developing Asia-Pacific Privacy Standard, with protocols for handling data transfers Released consultation draft of an APEC Privacy Framework in March 2004 Released Privacy Framework on 29 October 2004 Framework seeks to balance information privacy with business need and commercial interests Framework notes: unnecessary restrictions adversely impact global economies free flow of information is essential to sustain economical and social growth 29
30 APEC Principles I. Preventing Harm II. Notice III. Collection Limitation IV. Uses of Personal Information V. Choice VI. Integrity of Personal Information VII.Security Safeguards VIII. Access and Correction IX. Accountability 30
31 Privacy Office Role Responsibilities Organizational Design and Placement Access to Senior Management 31
32 Strategic Considerations Organization-wide position on privacy compliance Privacy principles Regulatory environment Risk management Influencing environment 32
33 Coordination Reporting developments Providing guidance on changes Ensuring compliance with emerging requirements Conducting privacy training programs 33
34 Outreach Regulators Industry associations Stakeholders 34
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