Drugmakers and the administration headed to court Monday in a fight over a Trump rule that would require companies to disclose the list prices of their drugs in television advertising.
The narrow ruling by U.S. District Judge Amit Mehta in Washington, D.C., struck down a requirement that was set to go into effect within hours, on Tuesday. Drugmakers had argued that requiring them to disclose list prices amounted to coercion that would violate their free speech rights under the Constitution.
The rule, set to take effect July 9, is one of the most visible efforts by the Trump administration to try to address high drug prices.
What Do New Drug Ad Price Disclosures Mean?
Last week, the Department of Health and Human Services adopted a new rule mandating, at some point later this year, that prescription drug advertising on TV contain certain price information. Specifically, HHS will require TV ads for prescription drugs covered by Medicare or Medicaid to include the list price for a month’s supply or for the usual course of therapy, if that price is $35 or more. While some advertising groups argue that this requirement is an unconstitutional infringement on free speech, assuming that the rule goes into effect as planned, what effect will the rule have on TV?
Broadcasting and advertising groups are adding a powerful voice to the fight against a controversial Trump administration proposal that would require drug companies to share prices in their commercials. Critics worry the new rules could discourage Big Pharma from advertising on air, costing the nation’s advertisers and television stations an important source of revenue.
The Senate on Thursday passed a measure to provide funding to require drug advertisements to disclose the price of the drug after a last-minute push. The move marks a rare moment where Congress took some action aimed at high drug prices, a contentious issue that has been a recent target of Democrats and the Trump administration.
Exclusives
Direct-to-consumer advertising for prescription drugs is back in the spotlight again following the American Medical Association’s recommendation that such ads be banned. While the most recent round of this longstanding debate is just beginning, marketers and drug companies opposed to the AMA suggestion already have some ammunition to respond to these claims, showing that DTC prescription drug ads may be beneficial to consumer healthcare by boosting patient adherence to drug regimes.
The AMA is calling to end them has media sellers in fits, and no wonder. It’s big dollars, $4.5 billion last year, and spending is surging at a time when other ad categories are down
The American Medical Association wants direct-to-consumer ads for prescription drugs and implantable medical devices banned. “Today’s vote in support of an advertising ban reflects concerns among physicians about the negative impact of commercially driven promotions and the role that marketing costs play in fueling escalating drug prices,” said Dr. Patrice Harris, an AMA board member.
