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8 LONG TITLE
9 General Description:
10 This bill amends provisions related to health and accident policies in the Insurance
12 Highlighted Provisions:
13 This bill:
14 . defines kickback or bribe;
15 . prohibits a pharmaceutical company from offering to pay or rebate the copayment or
16 out-of-pocket costs to induce a patient to order or purchase a drug that will be paid
17 for in whole or in part by an accident and health insurance plan; and
18 . makes a violation of the statute a class B misdemeanor.
19 Monies Appropriated in this Bill:
21 Other Special Clauses:
23 Utah Code Sections Affected:
25 31A-22-638, Utah Code Annotated 1953
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 31A-22-638 is enacted to read:
29 31A-22-638. Kickbacks or bribes prohibited.
30 (1) For purposes of this section:
31 (a) "Kickback" or "bribe" includes rebates, compensation, or any other form of
32 remuneration which is:
33 (i) direct or indirect;
34 (ii) overt or covert; or
35 (iii) in cash or in kind.
36 (b) "Person" means a pharmaceutical company that is not a contracted provider for the
37 accident and health insurance carrier that may be asked to pay for a drug in whole or in part.
38 (2) A person may not offer to pay or rebate a patient's copayment or out-of-pocket costs
39 in return for or to induce the purchasing or ordering of a drug as defined in Section 58-17b-102
40 for which payment is or may be made in whole or in part pursuant to an accident and health
41 insurance policy.
42 (3) A person who violates this section is guilty of a class B misdemeanor for each
Legislative Review Note
as of 2-15-10 11:28 AM