Open Payments Expansion Act
Open Payments Expansion Act would extend the federal Open Payments (Sunshine Act) transparency program to require pharmaceutical and device manufacturers, and applicable group purchasing organizations (GPOs), to publicly disclose payments they make to patient advocacy organizations. Starting March 31, 2027, and each year thereafter on the 90th day, these entities must report details about any covered payments to patient advocacy organizations, including the organization’s name and the payment amount. The act defines what counts as a “covered payment,” including direct payments and indirect payments routed through a third party, when the manufacturer or GPO instructs or causes the third party to provide funds to the advocacy group. It broadens the scope of recipients to include patient advocacy organizations, as defined in the bill, and states that the disclosure requirements are not subject to the Paperwork Reduction Act. The Secretary of HHS would administer the reporting in electronic form.
Key Points
- 1Adds patient advocacy organizations to the list of recipients required to be reported on in Open Payments, alongside other payees (e.g., physicians and teaching hospitals).
- 2Reporting deadline schedule: first due date is March 31, 2027, and then annually on the 90th day of each calendar year thereafter.
- 3Defines “covered payment” to include direct payments/transfers of value and indirect payments routed through a third party when the manufacturer or GPO directs or influences the third party to pay the advocacy organization.
- 4Broad definition of “patient advocacy organization” (501(c)(3) organizations that educate/advocate/support patients or caregivers, or organizations focused on medical conditions or vulnerable populations).
- 5Updates cross-references to include patient advocacy organizations as eligible recipients and exempts the reporting requirement from the Paperwork Reduction Act (PRA).