Vermont Governor Signs Bill Requiring Reporting of Gifts to Doctors by Drug Companies

As expected, Vermont Gov. Howard Dean (D) on June 13 signed a bill that will require pharmaceutical company representatives to publicly disclose all gifts valued at or above $25, excluding drug samples, given to doctors, hospitals and nursing homes. Vermont is the first state in the nation to pass such legislation, the Burlington Free Press reports (Kiernan, Burlington Free Press, 6/14). Proponents of the bill -- which is part of a larger package that would also authorize the state to negotiate drug prices and rebates for all Vermont residents and require drug companies to bid competitively to sell medications to beneficiaries of the state's health programs -- say that such gifts increase medical costs by encouraging physicians to prescribe more expensive drugs manufactured by gift-giving companies (Kaiser Daily Health Policy Report, 6/13). The bill mandates that the state attorney general publish the disclosure list annually (Kaufman, Washington Post, 6/14). The state is also considering publishing the list on the Internet to discourage doctors from taking gifts. "Doctors won't want to be known as the family physician who is influenced by perks and free gifts from an industry that is charging too much," Peter Shumlin, president pro tem of the state Senate, said. However, drug industry representatives said the rules are "unnecessary" because most gifts to doctors are "minor" expenses such as in-office lunches (Johannes, Wall Street Journal, 6/14). Proponents of the Vermont law hope that it will serve as a model for other states. More than 15 states are currently considering restrictions on drug company promotions and advertising (Washington Post, 6/14). PRI's "Marketplace" on June 13 reported on the signing of the Vermont bill and included comments from Dean and Trewhitt. The full segment is available online in RealPlayer Audio (Palmer, "Marketplace," PRI, 6/13).