HR3789-119

What This Bill Does

The DTC Act addresses prescription drug price disclosure in consumer advertising. Congress makes findings that the United States and New Zealand are the only developed countries permitting direct-to-consumer prescription drug advertising; pharmaceutical ad spending exceeded $6.046 billion in 2018; the average American saw nine drug ads per day; and GAO found 2016-2018 advertising concentrated among 39 brand-name drugs or biologics. It cites evidence that direct ads increase patient requests, prescriptions, use, and Medicare spending, and that patients with high deductibles or coinsurance often face list-price exposure. The operative Social Security Act amendment requires HHS, by July 1, 2026, to require each direct-to-consumer advertisement for a Medicare- or Medicaid-payable prescription drug or biologic that must disclose side effects, contraindications, and effectiveness to also include pricing information. The disclosure must clearly and conspicuously state the wholesale acquisition cost for a 30-day supply or typical course of treatment, but the requirement does not apply when WAC is below $35. The disclosure may explain that the consumer's actual payment can differ based on insurance. HHS must issue final regulations within one year, including visual and audio requirements for different ad media and rules for how quickly manufacturers must update ads when prices change.

Who Benefits and How

Patients with high-deductible plans benefit from seeing list-price information before asking for an advertised drug. Medicare beneficiaries benefit if WAC disclosures help them anticipate coinsurance exposure on nonpreferred drug tiers. Drug-price transparency advocates benefit from a clear HHS rulemaking mandate for consumer-facing ads. Lower-cost drug competitors benefit if high-WAC advertised drugs face price comparison pressure.

Who Bears the Burden and How

Pharmaceutical manufacturers must add WAC disclosures to qualifying direct-to-consumer ads and update them when prices change. HHS rulemaking staff must write media-specific visual and audio disclosure regulations within one year. Advertising agencies handling drug campaigns must redesign TV, digital, print, and audio ads to include price disclosures. High-WAC brand-name drug makers face reputational and demand risk when list prices are shown in ads.

Key Provisions

• Requires direct-to-consumer ads for Medicare- or Medicaid-payable drugs and biologics to disclose WAC pricing by July 1, 2026.
• Exempts drugs and biologics with WAC below $35 for a 30-day supply or typical treatment course.
• Requires clear and conspicuous disclosure of wholesale acquisition cost.
• Allows ads to explain that consumer out-of-pocket costs may differ by insurance coverage.
• Requires HHS final regulations within one year with media-specific visual and audio rules.
• Uses findings on ad spending, GAO concentration, high deductibles, coinsurance, and Medicare spending to justify price transparency.