NY gov proposes limiting drugmakers' gifts to docs

NEW YORK, May 15 (Reuters) - Doctors in New York state would be prohibited from accepting gifts or payments from drugmakers worth more than $50 a year under a law Gov. David Paterson proposed on Thursday.

Doctors would also have to reveal any financial ties to the companies if they gave educational talks to their peers,

"Studies show that gifts can have an influence, perhaps even unconsciously, on prescribing decisions," Paterson said in a statement, though he said most doctors "work very hard" to serve their patients.

Lavish gifts to doctors from industry -- ranging from golf vacations to pricey dinners -- have come under fire from lawmakers for influencing doctors' prescribing habits. The industry says such gestures are part of its doctor education, but critics say they taint independent decision-making.

Under a recently revised U.S. Senate bill, drugmakers and medical device makers would be required to publicly report gifts over $500 a year to doctors.

Paterson said his bill would free doctors from the influence of the billions of dollars drug companies spend each year on gifts and payments to physicians.

Drugmakers that violated the gift limits would be fined. So would doctors who accepted bigger rewards, and any violations would be considered professional misconduct. There would be exemptions for "reasonable payments" for bona fide research or education, Paterson said.

He also proposed stiffer disclosure rules for pharmacy benefit managers, which run prescription drug plans for companies that provide health benefits.

The new bill would force these companies to say what drugs the patients use, explain any price increases, and disclose any "actual or potential" conflicts of interest.

Patients could not be switched to more costly drugs without being told and given "relevant clinical and financial information." The companies would also have to disclose contracts with drugmakers and other providers, Paterson said. (Editing by Leslie Adler)