Now that the Affordable Care Act is in full swing, media outlets across the country are reporting on the many changes that are meant to provide better affordable care to Americans. One of the things that is not being reported on as much is how the Affordable Care Act affects medical device and drug manufacturers. One of the key laws now mandated through the Affordable Care Act is the Physicians Payment Sunshine Act, affecting all medical supply companies, pharmaceutical drug makers and group purchasing organizations.
The act is rather straightforward. It states: “Applicable Manufacturers” of “Covered Products” are required to disclose certain “payments and other transfers of value (TOV)” made to “Covered Recipients” to CMS, who will make the information publicly available.
For those unsure of the wording, applicable manufacturers of covered products means basically any US medical supply or drug company that manufactures a product pre-approved by the FDA that is reimbursable by Medicaid, Medicare, or the Children’s Health Insurance Program. Covered recipients refers to physicians and teaching hospitals, and payments and other TOV include charitable contributions, food/drink, speaking fees, gifts, lodging and more.
Starting this past August 1st, medical supply companies must collect data on all contributions greater than $10 from non-existing personal relationships to physicians and other covered recipients. This information will eventually be available to the public on September 30, 2014.
In the meantime to stay in compliance with the law and avoid confusion, any medical supply company or drug manufacturer should make it a point to revise their current policies to make the transition easier, have training set up for all employees and salesmen, and coordinate with other business partners. The information required for collection includes the physician details, the TOV details and the product details.
By staying on top of the Sunshine provisions, you can make the new changes with the Affordable Care Act much more palpable. And as a trusted medical supply company, Cen-Med Enterprises will be in compliance with these changes to help serve the healthcare community in providing the best care possible to all of its patients.