New California Law Requires Open Payments Notice to Patients

By on November 29, 2022

On September 29, 2022, California Governor Gavin Newsom signed Assembly Bill 1278, which requires physicians and their employers to provide patients with notices about the Open Payments database starting January 1, 2023.

The federal Open Payments program is designed to promote transparency by requiring applicable manufacturers of drugs, devices, and biological or medical supplies to annually report to the Centers for Medicare & Medicaid Services certain payments and other transfers of value made to physicians, certain advanced practice providers (e.g., nurse practitioners) and teaching hospitals. Currently, pharmaceutical companies in California must disclose their compliance program, including information related to the annual dollar limits on gifts, promotional materials or incentives provided to medical or health professionals (California Health & Safety Code § 119402). The enactment of this new legislation will impose new disclosure requirements specifically onto physicians and their employers regarding physicians’ financial relationships with pharmaceutical and medical device manufacturers.

Read more here.

Ming Chuang
Minghao (Ming) Chuang advises on regulatory and transactional matters affecting a wide range of clients in the healthcare industry, such as health plans, hospitals, physician groups, ambulatory surgery centers, and digital health companies. Ming is experienced assisting clients navigating issues related to the California Knox-Keene Act, the Stark Law, the Anti-Kickback Statute, corporate practice of medicine and Medicare and Medi-Cal regulations. Read Ming Chuang's full bio.




Top ranked chambers 2022
US leading firm 2022