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Your health care data is for sale. Here’s how Big Pharma is using it.
Straight Arrow News
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3 months ago
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00:00
In this video, we're going to explain how Big Pharma buys your healthcare data and uses
00:05
it to target doctors who don't prescribe their drugs.
00:10
It sounds like a HIPAA violation.
00:13
Insurance companies are selling your healthcare information to pharmaceutical companies so
00:17
they can target your doctor.
00:19
It's legal because they remove your name and replace it with a number.
00:23
They know your age, your sex, your medications, your hospitalizations, your illnesses, and
00:29
the zip code where you live.
00:32
But as long as your name isn't attached to that information but you're identified by
00:36
a number that's considered anonymized, patient-level information and that is compliant with HIPAA
00:44
laws.
00:45
The prescription data sold by pharmacies de-identifies patient information and replaces doctors'
00:51
names with their license numbers.
00:53
But here's the key.
00:54
The American Medical Association sells access to its Physician Master File, which
00:59
contains the license information for nearly every doctor in America.
01:04
This gives drug companies everything they need to connect doctors to their prescriptions.
01:08
They know exactly what they're prescribing and they also know what they're prescribing it
01:14
for because your insurance company sells your health information to these health information
01:21
organizations as well.
01:23
There's a $9 billion industry called Healthcare Commercial Intelligence that buys all this information
01:29
from insurance companies and pharmacies and puts it together in one easy-to-use database.
01:35
Drug companies subscribe to these databases and use the information to make inroads either
01:40
in a new market or with a new drug.
01:43
Definitive Healthcare, for example, sells itself as having all the answers to pharmaceutical companies'
01:48
most important questions.
01:49
How do you find the physicians who can prescribe your drug?
01:53
Who are the key decision makers at your target account?
01:57
How big is the market for your new device?
01:59
Definitive has profiles on more than 2.6 million physicians, nurses, and other healthcare professionals,
02:06
as well as billions of insurance claims on hundreds of millions of patients.
02:11
The company updates its database daily.
02:14
The physician profiles include clinical activity level, prescription activity level, and their
02:19
propensity to prescribe brand name over generic drugs.
02:23
So when a drug rep walks into a doctor's office, they have the doctor's profile in hand and a custom
02:28
sales pitch based on their patients' data.
02:31
I started practicing 30 years ago.
02:33
And even back then, the pharmaceutical companies could buy vendor data.
02:37
They knew what your prescribing practices were.
02:40
And they would use that to target specific medications, specific physicians based on prescribing
02:47
patterns.
02:48
Dr. Ami Bera has a unique perspective as a medical doctor and as a member of Congress.
02:53
It could be used for good if you're not using the medications correctly or it seems like you're
02:58
an outlier in those medications.
03:00
I'm going to guess most of the time it's used to market those medications and try to get you to switch
03:05
from one, let's say, antihypertensive to a different one.
03:09
According to a 2022 report from the cloud software company Viva, 60% of healthcare providers meet with
03:15
drug reps.
03:16
Dr. John Dombrowski, an anesthesiologist based in Washington, D.C., counts himself among
03:20
that crowd.
03:21
How does that make you feel knowing that the drug rep knows exactly what you've been doing lately?
03:26
I mean, that makes me a little uncomfortable.
03:28
It seems like Big Brother.
03:29
I did not consent to that.
03:31
I did nothing about this.
03:32
This is all kind of being vacuumed up.
03:35
It's very sad that, you know, the American Medical Association is then making profit off
03:40
my data that I didn't consent to that they can then sell to Big Pharma.
03:44
And what are you trying to get out of a drug rep and your interaction with a drug rep?
03:47
What are you hoping to learn?
03:48
Basically, I learn as much as I can.
03:50
Obviously, I go to meetings.
03:51
I have journal club.
03:53
And maybe there's a new medication out there that I may not know about that I would certainly
03:57
listen to them.
03:58
They can leave a leave behind.
03:59
Obviously, I know from a drug representative, they're here to push a product.
04:03
I know what they're selling and you should always be aware of that.
04:07
But just because there's a new product out there doesn't mean it's good or bad.
04:10
It means I should take a look at it to see maybe there's something I'm missing.
04:14
And that's appropriate.
04:16
Pharmaceutical companies spend billions of dollars a year on what's called prescriber detailing,
04:20
which is face-to-face sales meetings.
04:22
One of the most popular ways to do that is with a meal.
04:26
Drug reps take doctors out to dinner or deliver lunch to their office.
04:29
In exchange, the doctor listens to the sales pitch while they eat.
04:33
Some doctors have become so fed up with drug reps that they either won't meet with them
04:37
or have time limits.
04:39
Some hospital systems have banned them entirely.
04:42
Did you ever have an interaction with a drug rep where it seemed like they might have been
04:44
pressuring you?
04:45
You know, I never felt pressure.
04:48
But again, I think they're doing their job, which is selling their medication.
04:52
I think we have to do our job and I think we could do a better job educating medical students
04:57
in residency to understand what the real world is going to be like.
05:01
So our job is to push back, ask questions, gather information, but then make the most cost-effective
05:07
decisions.
05:08
This is all allowed under the Health Insurance Portability and Accountability Act of 1996,
05:13
or HIPAA, which was written to protect private health information.
05:17
HIPAA works by saying to the doctors and the hospitals and the health insurers, here's
05:22
a bunch of rules that you have to follow about this data, no matter what the patient says.
05:26
The patient gets these rights just by existing.
05:29
They don't have to agree to anything.
05:31
HIPAA only applies to personally identifiable information, so insurance companies can legally
05:37
de-identify information and sell it.
05:39
There are two ways to de-identify data, the expert method and the safe harbor method.
05:45
The expert method is pretty simple.
05:46
An expert must examine the data to ensure there is a very small risk a company could figure
05:51
out who it is.
05:53
The safe harbor method requires the removal of 18 identifiers, including name, zip code, telephone
05:58
numbers, email addresses and social security numbers.
06:02
According to the Department of Health and Human Services, de-identified health information
06:06
created following these methods is no longer protected by HIPAA.
06:10
But they wrote it and said if you go through this de-identification process, essentially
06:14
as long as it's still de-identified, you can do whatever you want with the data.
06:17
So nobody in that chain knows that you were one of the 400 patients that the doctor prescribed
06:24
for any drug.
06:25
So the patient data isn't a part of this.
06:29
Insurance companies spell out exactly what they do in their disclosures, it's just so
06:33
few people read them.
06:35
Take Cigna as an example.
06:37
Their Notice of Privacy Practices states, in some circumstances we may use your protected
06:41
health information to generate aggregate data or summarize data that does not identify
06:46
you to study outcomes, costs and provider profiles and to suggest benefit designs for
06:51
your employer or health plan.
06:53
These studies generate aggregate data that we may sell or disclose to other companies
06:57
or organizations.
06:59
United has a very similar disclosure.
07:01
Their Notice of Privacy Practices states, we may collect, use and disclose health information
07:06
needed to operate and manage our business activities related to providing and managing your health
07:10
care coverage.
07:11
We may also de-identify health information in accordance with applicable laws.
07:16
After that information is de-identified, the information is no longer subject to this
07:20
notice and we may use the information for any lawful purpose.
07:24
Is that a sufficient disclosure in your mind?
07:26
I mean that almost exactly word for word tracks the rules pretty much.
07:31
SAN reached out to the major insurance companies, health care, commercial intelligence providers
07:35
and the nation's largest pharmacy chains.
07:37
Despite multiple inquiries, these household names including United, Cigna and CVS never returned
07:43
our calls or emails.
07:45
But one of the nation's leading privacy and cybersecurity attorneys pushed back on the idea that selling
07:50
data is inherently bad.
07:52
This idea that your privacy is being violated because your data in an anonymous, de-identified
07:58
format is being used for other purposes, there's a disconnect there.
08:03
I mean it's a little hard to frame what your privacy interest is in having data that none
08:09
of the recipients know is about you.
08:11
Nara explained how this practice could help lead to better care for patients because it helps
08:16
all health care professionals track what works and what doesn't.
08:20
You want to be able to follow a patient across a journey.
08:24
I don't care that it's you.
08:26
I just need to know that it's the same patient who had this diagnosis on this day, this test,
08:31
this procedure, this, you know, whatever they're going to do and had that result.
08:36
I need to know that it's the same person in order to evaluate whether it's working and
08:40
whether you're doing that across the healthcare system.
08:42
I've practiced in 150 specialty medical group.
08:45
We would want to have the information to get a sense of how are doctors prescribing, what
08:50
are they prescribing, how are they using their medications, so that we could actually
08:55
take that feedback and give it back to our doctors, compare them to a panel of their peers
09:01
and see where they're at.
09:03
That I think is all valuable information, but that's not the pharmaceutical company.
09:08
That's the medical group.
09:09
That's the hospital system per se.
09:13
Interactions between drug reps and medical professionals have changed since the turn
09:16
of the century.
09:17
In 2002, the Pharmaceutical Research and Manufacturers of America created a code to police interactions
09:22
between reps and healthcare professionals.
09:25
The self-imposed rules were updated in 2009, further restricting gifts and meals.
09:30
For more coverage of the healthcare industry, head to san.com or download the Straight Arrow
09:35
News app and search healthcare.
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