Several key medical groups have announced their support for legislation (S 2029) that would require pharmaceutical companies to report any gifts given to physicians.

The measure, sponsored by Sen. Charles E. Grassley, R-Iowa, and co-sponsored by Sen. Herb Kohl, D-Wis., is modeled after legislation already in effect in Minnesota and Vermont. Under the bill, pharmaceutical companies with revenues exceeding $100 million would need to file quarterly reports detailing all gifts of $25 or more given to physicians and clinicians. All disclosures would then be made public through the Department of Health and Human Services (HHS) Web site. Any company that did not file a report would be subject to a fine between $10,000-$100,000.

The American Medical Students Association (AMSA), the National Physicians Alliance (NPA) and the Prescription Project are supporting the legislation along with a companion bill that will be offered in the House by Oregon Democrat Peter A. DeFazio.

“Medicine is in danger of losing the public trust,” said AMSA President Michael Ehlert. According to Ehlert, pharmaceutical companies spent $22 billion on advertising last year, of which $7 billion was spent on direct marketing to doctors: paying for continuing medical education, travel and consultancy fees. Sales representatives also distributed items such as pens and notepads, and paid for free meals.

“None of this stuff is illegal,” said NPA executive director Jean Silver-Isenstadt. “It’s just not good for the patients.” According to Silver-Isenstadt, 94 percent of physicians receive some form of gifts from drug companies.

At a Monday news conference, all three of the groups stated that such gifts influence doctors to prescribe more expensive name brand medications instead of generic drugs. The groups hope that forcing drug companies to make such disclosures will raise public awareness of the issue. According to Silver-Isenstadt, 94 percent of physicians receive some form of gifts from drug companies.

Monday’s briefing coincides with the launch of AMSA’s “Pharm Free Week,” which will attempt to discourage medical students from accepting gifts, as it may constitute a conflict of interest.

Several states have already enacted similar legislation. Vermont and Maine require disclosure of payments of $25 or more, but do not make that information available to the public. Minnesota passed a law that requires the reporting of payments over $100 to physicians and bans any gifts worth over $50. While such disclosures are made public, the Minnesota state legislature is not required to analyze the data.

The Pharmaceutical Research and Manufacturers of America (PhRMA) issued a statement Tuesday expressing concern about the measure. It said the bill would create a “reporting bureaucracy and could cause confusion and burdens for companies, physicians and patients.” PhRMA officials reiterated that the organization’s marketing code states that all forms of entertainment, including competitive sporting events and golf games, are inappropriate. The PhRMA guidelines also state that “modest meals should be allowed” and that gifts should not exceed $100 in value and should be items that support a medical practice, such as a stethoscope or medical dictionary.