Health Reform: CMS Issues Proposed Rules on Federal "Sunshine" Law for Manufacturers and GPOs


On December 14, 2011, the Centers for Medicare & Medicaid Services (“CMS”) issued long-awaited proposed rules with a lengthy preamble (collectively referred to herein as “Proposed Rules”) relevant to Section 6002 of the Patient Protection and Affordable Care Act, also known as the Physician Payment Sunshine Act.

Generally, the Physician Payment Sunshine Act requires applicable pharmaceutical, medical device, biological and medical supply manufacturers to report annually certain information to CMS regarding “payments and transfers of value” provided to “covered recipients.” The Physician Payment Sunshine Act also requires manufacturers and group purchasing organizations (“GPOs”) to report annually certain information to CMS regarding “ownership or investment interests” held by physicians and their immediate family members. The first report is due March 31, 2013.

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