$25 And Up: Bill Proposes New Disclosure Rules
6 CommentsBy Ed Silverman // March 18th, 2008 // 10:34 am
That’s right. If a drugmaker or device maker gives docs payments or gifts worth more than $25, they would be required to disclose the info on their web sites. The bill, known as the Physician Sunshine Act, or HR 5605, was introduced into Congress by two Democrats, Pete DeFazio of Oregon and Pete Stark of California, and serves as a companion to a Senate bill.
Under the bill, companies with at least $1 million in annual revenue would be required to file quarterly ‘transparency reports’ to disclose gifts, trips or various payments that exceed $25 in value. And that info must posted on a company web site. And these disclosures also pertain to any gifts or payments that are made “directly, indirectly, through an agent, subsidiary or other third party.” The bill also covers payments for CME. What are the penalties? Civil fines of not less than $10,000, but not more than $100,000, for each such transgression. And tax deductions for advertising would be eliminated for any company that suffers a penalty.
In a statement, the Congressmen say their legislation “builds on existing laws in Minnesota, Vermont, Maine and West Virginia…This bill will provide much needed transparency into the increasingly corrosive relationship between the pharmaceutical and medical device industries and American physicians. DeFazio contends “this bill will keep the pharmaceutical industry honest.” And Stark adds: “It may even convince doctors to quit taking what can only be described as industry kickbacks.”
In response, PhRMA’s Ken Johnson told Congressional Quarterly: “We believe that improving transparency in such interactions is a laudable but complex goal. Any steps toward transparency should be structured in a way that would not chill these important exchanges.”
We are reminded that several device makers recently began posting on their web sites amounts paid to consultants as part of a settlement with the Department of Justice last fall. Look here.
Dan
Those opposed to the bill are those who fear exposure of thier tactics/activities. It would also illustrate the autonomy of how the pharma money is dispensed and the pharma’s lack of true control of what goes out to generate business for them. Pharma is convinced that the more they spend, the more revenue this will generate. Problem is that they dross the line perhaps from a legal paradigm, so I’d be nervous about such a bill as well.
Former pharma Marketing Exec
Actually, this is a great bill. It is already in place by some device makers and it is a real joy to visit their websites and look through the disclosure page. Must be quite exciting for patients…
Jack2
They need to disclose gifts >$25/year? I don’t always side with the industry on this blog - but that seems ridiculous. The lower limit needs to be a lot higher.
BAC
Maybe they should just have to list the Opinion leaders that they give $25,000+ per year. That list would be long enough. many of these guys are on retainer for more than that - with multiple companies!
Pharma News 3_22 « Impactiviti blog
[...] More drugmaker disclosure to be debated in a pending bill: f a drugmaker or device maker gives docs payments or gifts worth more than $25, they would be required to disclose the info on their web sites. The bill, known as the Physician Sunshine Act, or HR 5605, was introduced into Congress by two Democrats, Pete DeFazio of Oregon and Pete Stark of California, and serves as a companion to a Senate bill… [...]
Angry
Good luck with trying to put a stop to this behavior! Pharma has so many tricks up theri sleese, the feds are way, way behind. They change the names of the programs, hide them, bury the bribes, and deal with it as they have to. It’s coming from every direction. If a doc decides to give in, they are well rewarded for their loyalty.