The Trump administration finalized a rule Wednesday that requires drugmakers to disclose prices in television ads, despite skepticism the move will lower the high cost of drugs and concerns that sticker shock will frighten patients into going off their medications. Under the rule, which takes effect in 60 days, manufacturers must list a product's monthly wholesale price or the cost for a typical course of treatment if it is greater than $35 for 30 days. The information should appear in text large enough for most people to read and include a statement that patients with health insurance may pay a different sum.Story Continued Below The rule allows companies to include list prices of competitor products, and says HHS will publicize companies that create false or misleading ads. But primary enforcement will be left to industry. If a drug company fails to include required information, a competitor can file suit under the deceptive and unfair trade practice provisions of the Lanham Act. HHS Secretary Alex Azar, in a news release, called the requirement "the single most significant step any administration has taken" toward price transparency. But health policy experts are skeptical it will have any impact on drug costs. Most Americans agree. A July 2018 POLITICO/Harvard poll found that 63 percent of Americans favored requiring price information in drug advertisements, but only 28 percent believed it would bring lower costs. The drug industry spent more than $5.5 billion on advertising in 2017, including nearly $4.2 billion on television ads, according to HHS. Prescription Pulse A weekly briefing on pharmaceutical policy news — in your inbox. By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time. Azar told reporters he could not provide an estimate of whether or how much the rule would change drug prices because "the behavioral aspects of this are too unpredictable" to quantify. But when combined with other steps the administration is taking on drug costs, the rule will lower medication prices, he said. He dismissed statements from drug companies that the ads could cause some insured patients to stop filling their prescriptions out of the mistaken belief the drugs would cost them too much. "If a drug company is afraid that their prices are so excessive and abhorrent that they will scare patients away from using their drugs, well they ought to look inside themselves and think about whether they should be lowering their prices," Azar said. “If you are ashamed of your drug prices, change your drug prices, it’s that simple,” he said. The drug lobby PhRMA has been pushing a different plan that would not put prices directly in ads, but direct patients to more nuanced information, such as a website that includes the drug's list price, an expected range of patient out-of-pocket costs and financial support available to patients. PhRMA reiterated that it may mount a First Amendment chal
Trump finalizes rule to require drug prices in TV ads
The Trump administration finalized a rule Wednesday that requires drugmakers to disclose prices in television ads, despite skepticism the move will lower the high cost of drugs and concerns that sticker shock will frighten patients into going off their medications. Under the rule, which takes effect in 60 days, manufacturers must list a product's monthly wholesale price or the cost for a typical course of treatment if it is greater than $35 for 30 days. The information should appear in text large enough for most people to read and include a statement that patients with health insurance may pay a different sum.Story Continued Below The rule allows companies to include list prices of competitor products, and says HHS will publicize companies that create false or misleading ads. But primary enforcement will be left to industry. If a drug company fails to include required information, a competitor can file suit under the deceptive and unfair trade practice provisions of the Lanham Act. HHS Secretary Alex Azar, in a news release, called the requirement "the single most significant step any administration has taken" toward price transparency. But health policy experts are skeptical it will have any impact on drug costs. Most Americans agree. A July 2018 POLITICO/Harvard poll found that 63 percent of Americans favored requiring price information in drug advertisements, but only 28 percent believed it would bring lower costs. The drug industry spent more than $5.5 billion on advertising in 2017, including nearly $4.2 billion on television ads, according to HHS. Prescription Pulse A weekly briefing on pharmaceutical policy news — in your inbox. By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time. Azar told reporters he could not provide an estimate of whether or how much the rule would change drug prices because "the behavioral aspects of this are too unpredictable" to quantify. But when combined with other steps the administration is taking on drug costs, the rule will lower medication prices, he said. He dismissed statements from drug companies that the ads could cause some insured patients to stop filling their prescriptions out of the mistaken belief the drugs would cost them too much. "If a drug company is afraid that their prices are so excessive and abhorrent that they will scare patients away from using their drugs, well they ought to look inside themselves and think about whether they should be lowering their prices," Azar said. “If you are ashamed of your drug prices, change your drug prices, it’s that simple,” he said. The drug lobby PhRMA has been pushing a different plan that would not put prices directly in ads, but direct patients to more nuanced information, such as a website that includes the drug's list price, an expected range of patient out-of-pocket costs and financial support available to patients. PhRMA reiterated that it may mount a First Amendment chal
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