Drug companies in US mandated to put list price in TV commercials

By PharmaCompass

2019-05-17

Impressions: 99 Article

In the US, the Trump administration last week brought in a regulation that requires drugmakers to put the list price of their drugs in television advertisements. The regulation applies to all drugs covered by Medicare or Medicaid, if it costs at least US$ 35 for a month’s supply or the usual course of treatment. The administration published this rule in the Federal Register on May 10, and it is set to become effective on July 9.

It appears that self-policing didn’t bring the required results though some drug companies, like Johnson & Johnson’s and Eli Lilly, had released TV ads with the list prices of their drugs.

With this ruling, consumers will be able to “make informed decisions and demand value from pharmaceutical companies,” Centers for Medicare and Medicaid Services Administrator Seema Verma said in a statement.

According to the Department of Health and Human Services (HHS), the 10 most commonly advertised drugs in the US have list prices ranging from US$ 488 to US$ 16,938, though many patients with insurance do not pay the full amount.

“Patients have a right to know, and if you’re ashamed of your drug prices, change your drug prices,” HHS Secretary Alex Azar said.

Drug companies are largely opposed to the regulation. The Pharmaceutical Research and Manufacturers of America (PhRMA), a drug trade group, has already voiced opposition to the measure.

“We are concerned that the Administration’s rule requiring list prices in direct-to-consumer (DTC) television advertising could be confusing for patients and may discourage them from seeking needed medical care,” a representative of PhRMA said.

While no company has sued the Trump administration, the Association of National Advertisers (ANA) is “seriously considering trying to find a way to block” what it thinks is an “unconstitutional proposal by the HHS,” said Dan Jaffe, head of ANA's government relations office.

The American Medical Association, which has called for a ban on DTC ads in the past, said the rule is “a step in the right direction.”

The PharmaCompass Newsletter – Sign Up, Stay Ahead

Feedback, help us to improve. Click here

Image Credit : #Phisper Infographic by SCORR MARKETING & PharmaCompass is licensed under CC BY 2.0

“ The article is based on the information available in public and which the author believes to be true. The author is not disseminating any information, which the author believes or knows, is confidential or in conflict with the privacy of any person. The views expressed or information supplied through this article is mere opinion and observation of the author. The author does not intend to defame, insult or, cause loss or damage to anyone, in any manner, through this article.”

NEWS

DRUGS & DEVELOPMENTS

MARKET INTEL by PharmaCompass