Vermont Governor To Sign Bill Requiring Drug Makers To Report Gifts To Doctors

Vermont Gov. Howard Dean (D) on June 13 plans to sign a bill that would require pharmaceutical companies to report to the state any gifts to doctors valued at or above $25, excluding free drug samples, the AP/Baltimore Sun reports. Proponents of the bill say that such gifts increase medical costs by encouraging physicians to prescribe more expensive drugs manufactured by gift-giving companies. A study released in April by the Kaiser Family Foundation found that 92% of doctors accept free drug samples from pharmaceutical companies, and 61% accept "meals, tickets to entertainment events or free travel." State Sen. Peter Shumlin (D), president pro tem of the Vermont Senate, said the new disclosure requirement -- "one of a growing number" of similar state laws aimed at controlling health care costs -- "should embarrass this greedy industry into playing fair" (AP/Baltimore Sun, 6/12). Opponents of the bill said it is "unnecessary" in part because the pharmaceutical industry on July 1 plans to implement new, voluntary guidelines that "prohibi[t] or curtai[l] most gifts, entertainment and consulting arrangements" between drug companies and doctors (Washington Times, 6/12). The Vermont bill would also authorize the state to negotiate drug prices and rebates for all Vermont residents and would require drug companies to bid competitively to sell medications to beneficiaries of the state's health programs (AP/Baltimore Sun, 6/12).