Vermont Enforces Disclosure Law For Second Time This Year: $45,000 Penalty Against Dental Company For Failing to File Disclosure Reports

Last week, in our Vermont transparency update, we wrote that Vermont’s Attorney General enforced the state’s Prescribed Product Gift Ban and Disclosure Law for the first time in nearly a year. Now, the AG’s office just posted another enforcement document to their website—a $45,000 settlement with Heraeus Kulzer, LLC, a dental company, for failing to file annual disclosure reports.

Vermont law bans most gifts from manufacturers to healthcare professionals. For any “allowable expenditures and permitted gifts,” manufacturers must disclose these amounts to the state’s Attorney General. Vermont law also requires manufacturers to disclose the distribution of samples of prescribed products to Vermont HCPs. Under Vermont law, a “sample” includes starter packs, coupons, and vouchers that enable an individual to receive a prescribed product free of charge or at a discounted price. 

Vermont’s Prescribed Product Gift Ban and Disclosure Law requires the Attorney General to include in its annual report “[i]nformation on violations and enforcement actions” brought pursuant to the statute’s enforcement provision.” According to the most recent report, “[d]uring 2012 and 2013, the Attorney General conducted dozens of investigations into potential violations of both the gift ban and the disclosure law. To date, the Attorney General has entered into 28 settlements resulting in payments to the state of $102,500.00, and one payment of $35,000 to Vermont’s Head Start Tooth Tutor Program.”  

In early February, the AG added to this number by settling with LifeNet Health. Last week, they settled with Heraeus Kulzer to bring the total enforcement actions to 30.

According to the “Assurance of Discontinuance,” the company gave allowable expenditures and/or permitted gifts to Vermont healthcare providers and/or other covered recipients over the past several years. However, according to the document, they “failed to file annual reports with the Attorney General’s Office” for the reportable periods.

Heraeus Kulzer agreed to comply with the Prescribed Product Gift Ban and Disclosure Law going forward, and pay the State of Vermont $45,000. Furthermore, “for each act in violation of this Assurance of Discontinuance,” the company will have to pay $10,000.  

View the list of now 30 enforcement actions by Vermont’s AG.