The Sunshine Provision
President Obama recently signed legislation that affects the promotional products industry – if you happen to work with doctors, or have customers who do. Here at Bankers, we want to keep you informed as well as answer any questions you might have about this new law.
The following is a list of guidelines and some helpful information regarding The Sunshine Provision.
- Manufacturers of drugs, biologics, and medical supplies or devices (covered manufacturers) are required to disclose to the government when they extend gifts to covered recipients.
- The transfer of anything with a value greater than $10 to a covered recipient (see below) must be disclosed. Or, if the amount exceeds $100 in a calendar year to any one recipient, it must be disclosed.
- The transfer of anything valued less than $10 is completely okay in any circumstance (up to $100 a year) There are over 43,000 promotional products available for under $10.
Exceptions include:
- Products that include educational materials that benefit patients
- Gifts intended for patients, nurses, physician assistants and other allied health professionals do not require disclosure.
- Hospitals and other businesses can buy promotional products (like food gifts!) to give as gifts to their employees and customers such as doctors
What types of doctors (covered recipients) does this law cover?
- Teaching hospitals and physicians
- All doctors of medicine and osteopathy
- Dentists and oral surgeons
- Podiatrists
- Optometrists
- Chiropractors
How this law benefits you:
- This could be an opportunity, because the bill also includes a grant for workplace wellness program development in small businesses.
- If customers declined promotional products in the past, using this law as an excuse, review the actual legislation with them.
- Review past and canceled orders, such as calendars. Maybe you can get the business back!
- Encourage products that focus on patient education.
- Ask medical clients about how they have been impacted by this law. They are likely to be craving sticky notes, other office supplies, etc. with their name and logo.
To Summarize
- Doctors are not prohibited from receiving promotional products. Depending on who the giver is, disclosure may or may not be required.
- Patient Educational materials are exempt from the law.
- Gifts for patients, nurses, physician assistants, etc. do not require disclosure.
- Doctor or employee gifts from the hospital or other non-covered businesses are not included.
- This law does not stop you from distributing promotional products to physicians. You only need to report the amount if it is over $10 per item or over $100 annually.
- And that is only if the giver is a manufacturer of drugs, biologics and/or medical supplies or devices (applicable manufacturer).
The reporting requirements are not effective immediately. First annual reports covering the 2012 calendar year are due on March 31, 2013.