HHS Mandates Ad Posting of Rx Prices

Are consumers ready to see the price of their prescription drugs in TV ads? How will they react? HHS has released a proposed rule to require pharmaceutical manufacturers to disclose drug prices in their television ads. The proposed rule would require drug makers to post the Wholesale Acquisition Cost (WAC) for drugs covered in Medicare or Medicaid in direct-to-consumer advertisements. It would require prices to be posted for a typical course of treatment for an acute medication like an antibiotic, or a thirty day supply of medication for a chronic condition that is taken every month. The posting would take the form of a legible textual statement at the end of the ad. Despite opposition from drug companies, HHS officials compared it to government requirements for auto makers to post their car prices. A Wall Street Journal article said the rule could create sticker shock for consumers and push drug makers to rethink their marketing strategies. Click here for the policy brief on the rule, here for the rule, and here for the WSJ article.

• According to STAT, five drug makers with the most expensive drugs will be hit the hardest, click here.
• The FDA announced that it plans to release a proposed rule next summer to allow more drugs to be available over-the-counter. Click here.
• If Democrats take over the House of Representatives in the mid-term election, big Pharma fears they will work with President Trump to cut a deal to reduce drug prices. Click here.