How Does Physician Payment Sunshine Act Affect Poster Gifts?

Promotional Anatomy Posters

The PPSA doesn't prevent gifts to physicians.

LAW Many U.S. physicians receive compensation from the pharmaceutical industry. Some may feel that the PPSA law that went into effect on January 1, 2012 prohibits gifts. Drug, device, biologics and medical suppliers must report gifts exceeding $10 in value or over $100 to any one recipent during the calendar year. Are imprinted and custom posters considered gifts or advertising literature? Is there even a distinction? If considered promotional gifts, it is possible to remain below the $10 threshold by ordering 1000 or more posters. The law offices of Ober Kaler offer a useful synopsis, [1] as does PEW. [2]

Physician Payment Sunshine Act In Brief

Highlights: The primary purpose of the law is to let consumers or patients know if physican prescriptions are being influenced by compensation. Beginning January 1, 2012, all U.S. manufacturers (and other entities under common ownership) of drug, device, biologics, and medical supplies covered under Medicare, Medicaid, or SCHIP must report payments on an annual basis to the department of Health and Human Services, which will post the information on a public website. This information is to be reported to HHS by March 31, 2013, and annually thereafter. HHS will then post this information on a publicly available, searchable online database as of September 30, 2013, and on June 30 of each year beginning thereafter.

The PPSA expressly excludes certain types of payments from its disclosure requirements. This includes a transfer of anything the value of which is less than $10, unless the aggregate amount transferred to, requested by, or designated on behalf of the covered recipent by the applicable manufacturer during the calendar year exceeds $100, subject to increase each year using the consumer price index. [1]

Depending upon the outcome of motions before the Supreme Court of the United States, the Healthcare Reform law, of which the Physician Payment Sunshine Act is a part, may be rescinded. Final ruling is expected in June of 2012. Check with your legal advisors if you are in any way concerned with how these developments affect you.

Tags: drugs, healthcare, items, legality, obamacare, summary, synopsis

  1. Physician Payment Sunshine Act.
  2. Physician Payments Sunshine Provisions in Health Care Reform.