By Michael Bielawski

Pharmaceutical companies are allegedly making late or missing payments on a Vermont tax intended since 2006 to create new resources for public health. Millions of dollars may be late for various public health services.

There are roughly 200 companies on the late-list provided by the state all with outstanding balances totaling close to $3 million as of October. Outstanding balances ranged from Astrazeneca Pharmaceuticals LP late on $2.61 to Novo Nordisk, Inc. based in New Hampshire owing the Green Mountain State $436,083.34. Another notable on the list is Janssen Pharmaceuticals, Inc. of New Jersey, which owes $735,929.28.

Language from the state statute states, “Annually, each pharmaceutical manufacturer or labeler of prescription drugs that are paid for by the Department of Vermont Health Access for individuals participating in Medicaid, Dr. Dynasaur, or VPharm shall pay a fee to the Agency of Human Services.”

Money gets used

The 1.75% fee is collected using the Medicaid rebate program. It is intended for numerous public health-related services, including education programs, and drug disposal programs, and it supports the Substance Misuse Prevention Oversight and Advisory Council.

It also supports nonpharmacological pain management, the purchase of fentanyl testing strips; purchasing naloxone, as well as “any opioid-antagonist education, training, and distribution program operated by the Department of Health or its agents.”

Why so late?

According to a VTDigger report, unpaid fees can happen for multiple reasons, including mergers and bankruptcies. The latter usually means the money is never collected. Their report notes that six companies account for almost a quarter of the total outstanding balances. Some of the worst offenders include Johnson & Johnson owes the Green Mountain State roughly $1.3 million.

The report notes that the Vermont Department of Health is now collecting about 80% of these fees which is up from around 50% last year.

Not the first abuse

There have been other controversial headlines in recent years concerning Vermont and pharmaceutical companies. About two years ago there was a major settlement between the State of Vermont and Johnson & Johnson, among other big drug distributors, and the state was awarded $64 million.

A state report says, “The agreement marks the culmination of three years of negotiations to resolve more than 4,000 claims of state and local governments across the country. It is the second-largest multistate agreement in U.S. history, second only to the Tobacco Master Settlement Agreement.”

Johnson & Johnson was also in the news for a baby powder controversy.  A 2019 NPR report states, “In December, Reuters reported that Johnson & Johnson had known for decades that the raw material in talcum powder could be contaminated with asbestos and sought to cover it up. The report triggered a 10% drop in the company’s stock price.

Fewer big pharma ads?

In related news, under the incoming Trump Administration, it’s being reported this week that Pharmaceutical companies may no longer enjoy the direct-to-consumer advertising that they’ve been used to.

The Daily Caller reported Sunday, “President-elect Donald Trump’s nomination of Robert F. Kennedy Jr. to helm the Department of Health and Human Services(HHS) is reportedly rattling drugmakers in light of Kennedy’s prior calls to ban pharmaceutical advertising.

Kennedy also highlights the conflicts of interest that the pharmaceutical industry currently has with the media.

“During his run for president and as a Trump campaign surrogate, Kennedy claimed that media outlets who receive substantial ad revenue from pharmaceutical companies cannot report on Big Pharma with objectivity,” the article states.

The author is a writer for the Vermont Daily Chronicle