CMS Announces it Will Not Require Data Collection by Manufacturers under the Physician Payments Sunshine Act Before January 1, 2013


Margaret Tavenner, Acting Administrator of the Centers for Medicare and Medicaid Services (CMS or the “Agency”), issued a letter to Senator Chuck Grassley on May 3, 2012 formally responding to a letter sent to her by Senator Grassley and Senator Herb Kohl on April 4, 2012 requesting information regarding the Agency’s plans to implement the federal Physician Payments Sunshine Act (the “Sunshine Act”). Among other things, the letter reiterates an announcement that was posted on CMS’s website on May 2, 2012, stating that “data collection [under the Sunshine Act] will not be required before January 1, 2013.”

The Sunshine Act, Section 6002 of the comprehensive Patient Protection and Affordable Care Act enacted in March 2010, requires certain pharmaceutical, biologic, and medical device manufacturers to annually report to CMS any payments or other transfers of value they furnish to physicians and teaching hospitals (deemed “covered recipients”). In addition, the law requires certain manufacturers and group purchasing organizations (GPOs) to report ownership or investment interests in their organizations held by physicians. CMS is required to make publicly available through a searchable website the information that manufacturers and GPOs submit in transparency reports.

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