Vermont legislators have passed a bill requiring drug, biotech and device makers to disclose gifts they offer to physicians and other health providers. The bill would expand an existing ban forbidding these companies from giving free food and gifts to providers. It would also tighten some loopholes in the state's current rules demanding that medical-products companies disclose payments made to providers and researchers.
The measure, which Gov. Jim Douglas is expected to sign, would be the most stringent public-disclosure requirement implemented by states so far. Medical products companies would have to make detailed annual public disclosures detailing what kind of payments they’re making to doctors, healthcare organizations, non-profits and academic medical institutions. Companies also have to annually disclose the names of their compliance officers and any previous year disclosure violations and enforcement actions to which they were subject. Under the proposed law, medical products companies would pay a $500 annual disclosure fee and a fine of up to $10,000 per incident for any violations of the rules.