Baucus Plan Includes Doctor Payment Disclosure Regulations (Known as Sunshine Act)

Tucked into the details of the Senator Baucus' draft health reform bill is a measure that would require drug and medical device companies to publicly report payments or “transfers of any value, with limited exceptions” to physicians or teaching hospitals. While the actual bill is not yet available, it appears that this provision will impact both physicians and manufacturers. The scope of the Senate provision is unclear but the House reform bill would require reporting of payments to a broader category of recipients, including all hospitals, physicians, pharmacies, health insurers, continuing medical education sponsors, researchers and patient and professional organizations.

The proposal is based on a bill introduced by Sen. Charles Grassley (R-IA), the committee’s ranking Republican, which would require drug makers to publicly report gifts to physicians once the aggregate amount over a year totals $100. Currently, the House bill sets the threshold at $5. This language will be another aspect of health reform to watch as it could create new administrative burdens of physicians as well as manufacturers.