Nature of the Payment

The Nature of the payment describes the purpose and manner of the payment or transfer of value. The proposed regulations provide several points of clarification and requests for comments, and as such the list of possible choices may change with publication of the final regulations.

Currently, the Nature of payment would be selected from the following list:

• Consulting fees;
• Compensation for services other than consulting;
• Honoraria;
• Gift;
• Entertainment;
• Food;
• Travel;
• Education;
• Research;
• Charitable contribution;
• Royalty or license;
• Current or prospective ownership or investment interest;
• Direct compensation for serving as faculty or as a speaker for a medical education program;
• Grants

What is excluded from the payment or transfer of value disclosure reports?

The law and draft regulations provide several types of payments and transfers of value that are excluded from the disclosure requirements, which include:

• Payments less than $10, unless the aggregate amount for the covered recipient exceeds $100 in the calendar year;
• Product samples (note that drug samples must be disclosed under a separate section of the Patient Protection and Affordable Care Act);
• Educational materials that directly benefit patients or are intended for patient use;
• In‐kind items for the provision of charity care; and
• Payments through a third party when the manufacturer is unaware of the covered recipient's identity.

What ownership information must applicable manufacturers and GPOs report?

Applicable manufacturers and GPOs must report ownership or investment interests held by physicians or the immediate family members of physicians in the applicable manufacturer or applicable group purchasing organization.

An ownership or investment interest may be direct or indirect, including:

• Stock;
• Stock options;
• Partnership shares;
• LLC memberships;
• Loans;
• Bonds; and Other financial instruments secured with the entity's property or revenue.

Retirement plans, stock options and securities received as compensation, and unsecured loans are not considered ownership of investment interests.These interests are excluded from the ownership or investment interest reports.