March 14, 2010 - 10:52:22 AM EST
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Could Promotional Products be banned?

The Physician Sunshine Payment Act, also known as S.301, is pending legislation that could have a far reaching impact on the Promotional Products industry.

When the Senate absorbed the Physician Payments Sunshine Act (PPSA) into broader healthcare reform, they modified the language to require only those products valued at $10 or more be reported. On the surface that would appear to be a victory for the promotional products industry. Unfortunately, the Senate included language that triggers reporting requirements for all items, regardless of value, once an annual total of $100 for a wide variety of payments and activities, not just promotional products, is reached.

When the House of Representatives absorbed PPSA into their healthcare reform proposal they modified the language of the bill so that only those items valued at $5 or more must be reported. Although the dollar amount for each item is lower, there is no "trigger" for reporting items valued at $5 or less based on annual total of promotion products and other payments, and therefore there is no limit on the number of promotional products with a value of less than $5 that can be given.

We are now at a critical juncture. These two separate bills-one from the House of Representatives and one from the Senate-must be merged into one and that final bill is likely to become law.

It is our belief that the "trigger" language in the Senate version is unfair and unreasonable. The method established by the House of Representatives healthcare bill is fairer to the promotional products industry; the House version does not impose reporting requirements. If medical supply and drug companies are required to track and record all transfers of value, they will not order promotional products to avoid the paperwork associated with them. Unfortunately, the dollar value assigned to each transfer of value is lower ($5 versus $10) in the House bill and the ideal solution would be to adopt the House method with the $10 limit per item.

Contact your Representatives today and let them know you could support the PPSA of the House Healthcare Reform legislation if they increase the value to $10. Additionally, let your Senators know you oppose their version of Healthcare reform and that their legislation will cause profound harm to the promotional products industry.

Go to PPAILAW.org to find out more about this, and other issues that directly affect the Promotional Products industry.

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