Every year, drug manufacturers spend $6 billion on direct-to-consumer pharmaceutical advertising, which often steers patients to choose more expensive drugs.
U.S. Reps. Abigail Spanberger of Virginia and Zach Nunn of Iowa introduced the Drug-Price Transparency for Consumers Act today to require pharmaceutical companies to disclose the price of their drugs on advertisements.
“Multinational pharmaceutical companies spend billions of dollars each year encouraging patients to spend more money than necessary on drugs — just to line their pockets,” Spanberger said. “Requiring advertisers to disclose the price tag on the drugs they are steering patients toward would hold drug companies accountable for skyrocketing drug costs and empower consumers to make informed decisions about their care. Virginians and Americans across the country deserve this information, and I’m proud to work with Rep. Nunn to bring a healthy dose of transparency and common sense to the pharmaceutical industry.”
Drug manufacturers spent more than quadruple in the last 20 years on ads, rising from $1.3 billion spent on 79,000 ads in 1997 to $6 billion on 4.6 million in 2016.
However, prescription drugs advertised directly to consumers account for 58 percent of Medicare’s spending on drugs, according to the Government Accountability Office (GAO). Each American sees an average of nine pharmaceutical advertisements each day and are often steered toward more expensive drugs, even when low-cost generics are available. The United States and New Zealand are the only countries in the world that allow direct-to-consumer pharmaceutical advertising.
“Iowa families are struggling to afford necessary health care due to out-of-control prescription drug prices,” Nunn said. “Iowans deserve to know what they’re paying before they agree to a plan of care and right now, the lack of transparency doesn’t make it easy. This legislation will create critical transparency in drug pricing that will hold the drug companies accountable and allow patients, families, and providers to make the best decision for their health.”
The legislation would amend the Social Security Act to allow the Secretary of the Department of Health and Human Services (HHS) to require that pharmaceutical advertisements disclose the wholesale cost for a 30-day supply or typical course of treatment of the drug, clearly present the price information, and explain that pricing may vary depending on insurance coverage. The bill would also subject advertisers to a penalty of up to $100,000 for each violation.
Companion legislation in the U.S. Senate is led by Sens. Dick Durbin of Illinois and Chuck Grassley of Iowa.
“Big Pharma spent more than $8 billion last year on direct-to-consumer (DTC) advertising pushing sales of high-priced blockbuster products,” said Lauren Aronson, Executive Director, Campaign for Sustainable Rx Pricing. “Requiring Big Pharma to disclose list prices in DTC ads will increase transparency in the prescription drug market, help serve as a deterrent to egregious price-gouging and arm patients and providers with useful information for considering the best treatment options for individual health care needs.”
Edward Cates is chair of the Senior Citizens League.
“It is time to give patients the clear information required to make informed decisions about their health. Critical medical decisions should always be made between a patient and their doctor — not between a patient and their television screen,” he said.
Share
Rebecca Barnabi
