This bill matters because it aims to bring more transparency to the relationships between drug and medical device companies and the organizations that advocate for patients. Currently, while payments to individual doctors are public, the financial ties between industry and patient advocacy groups are not as clear. If this bill becomes law, voters would have access to information that could help them understand if the advice, education, or policy positions of patient advocacy groups are influenced by funding from the companies whose products they may be discussing.
Without this bill, these financial connections could remain largely hidden, making it harder for the public to fully assess the independence and potential biases of patient advocacy organizations. With it, people could make more informed decisions about the healthcare information and advocacy they trust, potentially impacting public perception of both industry and patient groups.
KEY PROVISIONS
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PROVISION 01
Requires pharmaceutical and medical device manufacturers, and group purchasing organizations, to disclose direct and indirect payments made to patient advocacy organizations.
This creates a public record of financial ties between industry and patient groups.
PROVISION 02
The definition of 'covered payment' explicitly includes 'indirect payments,' meaning funds funneled through third parties if the manufacturer directed the payment.
This provision prevents companies from easily circumventing disclosure by using intermediaries.
PROVISION 03
Mandates that disclosures include the name of the patient advocacy organization and the amount of the payment.
This ensures specific, actionable data is collected for public review.
PROVISION 04
Requires annual submission of this payment data to the government, with the first report due on March 31, 2027.
This establishes a recurring schedule for transparency and ongoing oversight.
PROVISION 05
Expands the existing 'Open Payments' public reporting system to include this new category of payments, making the information accessible to the public.
This ensures the collected data is made publicly available for scrutiny.
This bill matters because it aims to bring more transparency to the relationships between drug and medical device companies and the organizations that advocate for patients. Currently, while payments to individual doctors are public, the financial ties between industry and patient advocacy groups are not as clear. If this bill becomes law, voters would have access to information that could help them understand if the advice, education, or policy positions of patient advocacy groups are influenced by funding from the companies whose products they may be discussing.
Without this bill, these financial connections could remain largely hidden, making it harder for the public to fully assess the independence and potential biases of patient advocacy organizations. With it, people could make more informed decisions about the healthcare information and advocacy they trust, potentially impacting public perception of both industry and patient groups.
KEY PROVISIONS
AI-extracted
high
Requires pharmaceutical and medical device manufacturers, and group purchasing organizations, to disclose direct and indirect payments made to patient advocacy organizations.
This creates a public record of financial ties between industry and patient groups.
high
The definition of 'covered payment' explicitly includes 'indirect payments,' meaning funds funneled through third parties if the manufacturer directed the payment.
This provision prevents companies from easily circumventing disclosure by using intermediaries.
high
Mandates that disclosures include the name of the patient advocacy organization and the amount of the payment.
This ensures specific, actionable data is collected for public review.
med
Requires annual submission of this payment data to the government, with the first report due on March 31, 2027.
This establishes a recurring schedule for transparency and ongoing oversight.
high
Expands the existing 'Open Payments' public reporting system to include this new category of payments, making the information accessible to the public.
This ensures the collected data is made publicly available for scrutiny.
First submission of details regarding covered payments made to patient advocacy organizations.
90th day of each calendar year beginning thereafter
Subsequent annual submissions of details regarding covered payments made to patient advocacy organizations.
GLOSSARY
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Open Payments Program (Sunshine Act)
A federal program that requires drug and medical device manufacturers to publicly report payments and other transfers of value made to physicians and teaching hospitals.
Applicable Manufacturer
A company that makes drugs, medical devices, biological products, or medical supplies covered by Medicare, Medicaid, or CHIP.
Group Purchasing Organization (GPO)
An entity that helps healthcare providers like hospitals buy products at a discount by negotiating with manufacturers on their behalf.
Patient Advocacy Organization
A non-profit group that provides education, support, or advocacy for patients and caregivers, is concerned with a medical condition, or helps vulnerable individuals affected by medical conditions.
Covered Payment
Any direct or indirect transfer of money or other valuable items from a manufacturer or group purchasing organization to a patient advocacy organization.
Indirect Payment
A payment or transfer of value made by a manufacturer or group purchasing organization to a patient advocacy organization through a third party, where the manufacturer or group purchasing organization directed the payment.
ACTION TIMELINE
2 EVENTS
SEP 4, 25
Introduced in Senate
INTROREFERRAL
SEP 4, 25
Read twice and referred to the Committee on Finance.
A section of federal law that includes provisions related to preventing fraud and abuse in Medicare and Medicaid, and contains the existing Open Payments Program.
