The Physician Payments Sunshine Act (S.301) requires drug, biologic, and medical device manufacturers to report certain gifts and payments made to physicians

Introduced – January 22, 2009

The Physician Payment Sunshine provisions were included in the Patient Protection and Affordable Care Act of 2009 which was signed into law on March 23, 2010

Start Date for Recording - January 1, 2012
Start Date for Reporting - March 31, 2013
Publication of Reports - September 30, 2013 and June 30th of every future year

Monday, June 8, 2009

Why Physician Payments Sunshine Act?

Inquiries led by Senator Chuck Grassley have revealed that physician industry funding of researchers who received millions in industry payments had allegedly failed to report the income as required by the National Institute of Health (NIH). The bill requires reporting of every kind of industry compensation to doctors, ranging from small gifts to royalties and consulting income.

Senator Chuck Grassley has also examined financial ties that members of advisory boards for the Food and Drug Administration have with the drug industry. He said he is considering MedPAC’s recommendation that reporting requirements also be applied to industry payments to medical organizations, hospitals, pharmacy benefit managers, pharmacists and pharmacies, continuing medical education groups, and medical schools. Senator Herb Kohl has also raised concern that pharmaceutical companies are now developing profiles of individual physicians’ prescribing information as part of their marketing efforts.

At present, six states have laws that require physicians to disclose any payments of $100 or more over the course of year, received from drug or medical devices manufacturers.

Penalties for non compliance are fines of up to $10,000 for each transfer of value that is not reported (not to exceed $150,000 annually) and up to $100,000 for knowingly failing to report (not to exceed $1,000,000 annually). Penalties applied will be posted on the public website.

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