This weekend the Massachusetts legislature passed an economic stimulus package that failed to include a repeal of the Pharmaceutical and Medical Device Code of Conduct .
As we reported in early July, the Massachusetts State House passed a repeal of the Pharmaceutical and Medical Device Code of Conduct, referred to as the “gift ban.” Amendments to keep the gift ban law in place were defeated.
The repeal however, which was part of the state economic stimulus package, was stalled for most of July because policymakers in Massachusetts were busy negotiating other pieces of the legislation including gambling, a sales tax holiday, a measure that would help the state locate new wind farms, and a bill that would limit many employers’ access to criminal records.
But the Boston Globe reported that “legislative leaders were hoping to enact the measures before midnight on Friday, when the legislative session is scheduled to end.”
Consequently, although “the House version of the bill would have reversed a ban on pharmaceutical firm gifts to health care workers, the compromise measure left the gift ban in place.” In other words, if the bill is passed in its current form, the Gift Ban will be repealed.
According to legislative leaders on the ground in Massachusetts the votes just weren’t there in the senate to repeal the Code, and they are hopeful that next legislative session they will have the votes to repeal this very bad law.
There has been tremendous impact the gift ban has had on innovation and medicine in Massachusetts over the past year, which was evidenced by a recent thesis from MIT/Harvard.
The house passing the repeal shows that legislatures have been listening to constituents and businesses such as restaurants, hotels, and conference centers that have all been negatively affected by the gift ban. More importantly, since medicine and healthcare is such a large field and presence in the state, it is clear that Massachusetts policymakers are reacting to the possibility that many companies will take their income, taxes, jobs, and numerous other beneficial factors to other states.