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TrumpRx’s pharma D2C model scrutinized for kickback risks

The news: Three US senators are raising concerns that the forthcoming TrumpRx website could steer patients toward drugmakers’ medications and potentially violate anti-kickback laws that prohibit financial incentives in exchange for patient referrals in federal healthcare programs like Medicare and Medicaid.

Catch up quick: Launching soon, the TrumpRx online platform will connect patients to drugmakers’ direct-to-consumer (D2C) platforms: websites for cash-pay discounts on select medicines. The initiative grew out of the administration’s broader push to pressure Big Pharma to lower drug prices.

Why it matters: In their letter to the HHS OIG, lawmakers detailed three primary risks associated with routing the TrumpRx program through pharma D2C platforms:

  1. Biased medical advice: Linking manufacturer websites directly to "hired" telehealth providers creates a "virtual pill mill" environment. This pressures doctors to prioritize brand-name prescriptions over a neutral assessment of what the patient actually needs.
  2. Financial conflicts: Prior investigations show that partners like Pfizer and Eli Lilly paid telehealth firms millions to facilitate these platforms. Data suggests patients using these channels are up to six times more likely to be prescribed that specific manufacturer's drug.
  3. Fraudulent billing risks: The "cursory" nature of these visits—often involving only a brief questionnaire rather than video—increases the risk of allowing firms to bill Medicare or private insurance for high-cost drugs and inadequate care.

Implications for drugmakers in the D2C market: Pharma companies resisted cutting prices under TrumpRx but agreed to do so to avoid tariffs. Now, they’ll likely focus on driving prescription volume for their lower-priced cash-pay products.

Drugmakers must ensure their D2C sales efforts and telehealth partnerships comply with anti-kickback laws and do not trigger billing fraud. The OIG recently issued guidance to help pharma manufacturers navigate TrumpRx rollouts, noting an overall “low risk” of violating the federal anti-kickback statute. However, pharma brands and marketers will still need to be transparent in all promotions about which consumers are best suited for pharma D2C purchases, clarify that not all D2C provider interactions lead to prescriptions, and notify clinicians and telehealth companies that they may not bill government healthcare programs.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Not a subscriber? Click here to get a demo of our full platform and coverage.

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