PPAI LAW: New Healthcare Bill Holds Hope For Promotional Products


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PPAI LAW: New Healthcare Bill Holds Hope For Promotional Products

Issue: 2009sep

Last week, Sen. Max Baucus, D-Montana, released a bill entitled “America’s Healthy Future Act of 2009.” This summary of healthcare reform incorporates provisions of S. 301, the Physician Payments Sunshine Act, but also proposes some slightly different measures for controlling the costs of healthcare, including the de minimis reporting requirement.

While S. 301 requires drug and medical supply manufacturers to report any gift of any value—including promotional products—once a $100 annual ceiling has been reached, Baucus’ bill calls for a $10 de minimis. A similar bill before the U.S. House of Representatives, H.R. 3200, calls for a $5 de minimis.

However, the $100 tracking total used to “trigger” the reporting requirement includes a wide variety of payments and activities, not just promotional products. Once the $100 annual total is reached, all items, regardless of value, must be reported.

“That triggering clause renders any minimum dollar exclusion moot and without a reasonable minimum dollar exclusion (e.g., $25) these medical supply companies and drug companies simply aren't going to order any more promotional products, in order to avoid the paperwork headache associated with tracking and reporting these items,” says John Satagaj, PPAI legal counsel and chief Washington lobbyist.

Satagaj adds that Baucus’ legislation also includes language preventing state legislatures from enacting similar but stricter laws. “This is good news. But we are not out of the woods yet,” he says.

Satagaj and members of PPAI’s Government Relations Action Council (GRAC) continue to encourage members to contact their Congressmen and women to call for changes to S. 301 and other legislation that would prohibit the distribution of promotional products.

Specifically, Satagaj encourages members to ask that the Senate not delete the $100 annual aggregate reporting requirement for other payments, but simply exclude transfers valued at less than $25 from reporting once the trigger is reached. Additionally, members should ask the Senate to revise the term ‘payment or other transfer of value’ to mean transfer of anything of value that exceeds $25.

Information on these bills and how to contact senators and representatives can be found at the PPAI LAW website. For more information, contact Anne Lardner, PPAI senior manager of public affairs, at 972-258-3041 or AnneL@ppai.org.

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