Press Release, June 8, 2009-Vermont Governor Jim Douglas Signs S.48 Into Law

The Vermont Association for Mental Health

PRESS RELEASE

June 8, 2009 

Today Vermont Governor Jim Douglas signed into law the Bill S.48, which requires a new national standard for disclosure and transparency in the relationship between the pharmaceutical industry and physicians.

 

The Executive Director of the Vermont Association for Mental Health, one of the lead advocacy organizations supporting the bill, characterizes Vermont’s new disclosure legislation as “the most expansive in the nation”.  “This bill”, said Libertoff “will be a major step in changing the climate and environment concerning the marketing of prescription drugs, medical devices and biological products”.

 

Highlights of the S.48 legislation are:

 1.      S.48 eliminates a major existing loophole in Vermont’s original law of 2002-the trade secret exemption 

2.      Applies to the manufacturers of prescription drugs, medical devices, and biological products.

 

3.      Bans payments for gifts including meals and travel

 

4.      Provisions extend to hospitals, nursing homes, pharmacists and health plan administrators

 

5.      Includes disclosure of payments from drug companies to health care education and advocacy groups

 

6.      Requires the establishment of a public website by Vermont Attorney General’s office in order to provide information to all interested parties

 

Despite strong opposition and strong resistance from Pharma and the drug industry, Vermont’s bill prohibits meals and gifts beginning July 1, 2009. The Vermont Legislature defined free meals as a marketing device and not a necessary requirement of the educational process between drug companies and doctors.

 

The Vermont’s Attorney General, Bill Sorrell, reported in the most recent review of expenditures that over the past three years, Vermont doctors have received an average of about $3,000,000 in gifts from drug companies.

 

Advocates for the legislation believe that not only will public disclosure change the environment but it will also have positive impacts on prescribing practices and ultimately the cost of medications.