NAD asks dietary supplement co. to modify or discontinue ad claims
NEW YORK The National Advertising Division of the Council of Better Business Bureaus last week recommended that Central Coast Nutraceuticals modify or discontinue certain advertising claims for the company’s Colotox dietary supplement.
NAD had request substantiation around the company’s implied claims of the product’s utility with colon cancer. And at the outset, the advertiser said it would permanently discontinue claims related to cancer to avoid any misperception that Colotox helps prevent colon cancer.
Central Coast also agreed to discontinue claims related to the positive impact of detoxification has on the appearance of hair, nails and skin; and that Colotox is the “purest and most effective cleansing product on the market today.”
In support of its remaining claims, the advertiser said it relied on testing conducted on each of the key ingredients in Colotox, including buckthorn, cascara sagrada, rhubarb, psyllium, fennel, ginger, licorice and goldenseal.
NAD did find the company provided reasonable support for claims regarding the product’s laxative properties.
The company, in its advertiser’s statement, said it does not agree with NAD’s determination regarding the “detoxification properties” of Colotox. However, the company said, “CCN will comply with the NAD’s recommendation that it discontinue making claims that Colotox can remove toxins from the body.”
The company noted that it “values and supports industry self-regulation, and we welcome the NAD’s decision regarding advertising for Colotox.”
NAD had initially referred Central Coast Nutraceuticals to the Federal Trade Commission and Food and Drug Administration after being unable to establish contact with the advertiser. However, following the referral, the advertiser contacted NAD and expressed its desire to participate in the self-regulatory process.
Walgreens draws another line in sand, opting out of Delaware Medicaid fills
DEERFIELD, Ill. Pushing back against a plan by Delaware Medicaid administrators to slash pharmacy reimbursements, Walgreens warned state budget-cutters Thursday the chain would stop filling Medicaid prescriptions in all of its 66 Happy Harry’s locations enrolled in Delaware Medicaid as of July 6.
Walgreens’ dramatic announcement comes after state negotiators refused to consider a suite of alternatives proposed by the company and by the National Association of Chain Drug Stores, company officials said. And — as has been the case in some other states — Walgreens’ ultimatum thrusts the chain into a front-line position in community pharmacy’s ongoing battle to maintain adequate prescription reimbursement rates, as states hit hard by the recession and budgetary shortfalls scramble for ways to cut spending.
Walgreens is the state’s largest pharmacy provider since it entered Delaware via its acquisition of Happy Harry’s in 2006. Thus, its announcement is sure to galvanize opposition to the cuts among all community pharmacies in the state.
Thanks in large part to its clout as a multi-store pharmacy operator; Walgreens was instrumental in a successful campaign to halt plans to drastically cut Medicaid pharmacy reimbursements in the state of Washington earlier this spring. If that pattern holds, the chain’s move could lead policymakers in Delaware to reconsider similar cuts in that state.
Delaware’s Medicaid cuts come under a new Medicaid reimbursement rule that took effect April 1, and is due to become part of the state’s new fiscal budget beginning July 1. The new reimbursement model gives pharmacies in the state one of the lowest payment rates in the country for brand name and generic medications, according to Walgreens.
“Delaware is arbitrarily and unilaterally reducing the price it will pay for brand name medications. This will severely impact the ability of pharmacies to fill Medicaid prescriptions in the state,” the company stated Thursday.
Kermit Crawford, Walgreens’ SVP of pharmacy, explained the move. “We have made the decision, after much thought and care, to end our involvement with the state Medicaid program. Quite simply, we can’t continue to participate in a program that, in some cases, pays us less than our cost to fill these prescriptions.
“By making it uneconomical for pharmacies to continue filling Medicaid prescriptions, the state’s new payments to pharmacies hurt the very patients that Medicaid is meant to serve,” Crawford asserted.
The state “could easily eliminate its Medicaid pharmacy budget gap simply by focusing on its generic dispensing rate at all pharmacies in the state,” he added, since each percentage point improvement in the generic dispensing rate would save the state approximately $1.2 million annually.In addition, Crawford noted that Walgreens, in conjunction with NACDS, had approached the state “with a number of sound alternative strategies and programs that could help Delaware fill its Medicaid budget gap.
“Many of these alternatives were rejected, despite their successes in other states. None of these methods would adversely impact patient care, unlike the reimbursement cut.”
Majority of swine flu victims predisposed to illness
NEW YORK A preliminary analysis of 152 hospitalized patients due to H1N1 influenza found that at least 82% have belonged to one or more groups at higher risk of severe illness or complications from traditional influenza, such as seniors, the very young and those with upper respiratory diseases, the New York City Department of Health and Mental Hygiene announced Wednesday.
So far, the most common risk factor in New York City has been asthma – an underlying risk factor among 41% of the New Yorkers hospitalized for H1N1 flu. Other important risk factors included being less than 2 years of age (18% of hospitalized patients), having a compromised immune system (13%), having heart disease (12%) or being pregnant.
The New York City Health Department also linked two more deaths to H1N1 influenza on Wednesday. The latest fatalities – both in adults in their early and mid 40s – bring the total number of deaths in New York to seven.
Emergency room visits have declined somewhat after spiking dramatically during the third week of May, the agency reported. More than 300 New Yorkers have been hospitalized with H1N1 flu since late April.