This Act mandates that television advertisements for prescription drugs and biologics covered by Medicare or Medicaid must clearly display the list price for a standard supply.
Nikema Williams
Representative
GA-5
The Plain Prescription Prices Act mandates that television advertisements for prescription drugs and biologics covered by Medicare or Medicaid must clearly display the list price for a standard supply. This aims to increase transparency by ensuring consumers see the cost information directly in drug advertisements. The Secretary of Health and Human Services will establish the specific rules and enforcement mechanisms for this price disclosure.
The Plain Prescription Prices Act is pretty straightforward: it aims to pull back the curtain on the cost of prescription drugs advertised on TV. Specifically, it requires that any direct-to-consumer television ad for a drug or biologic covered by Medicare or Medicaid must clearly display the list price for a typical 30-day supply or standard course of treatment.
Think about those slick pharmaceutical commercials you see during the evening news—the ones that list a dozen side effects faster than you can follow. Under this proposed law (SEC. 2), those ads would have to include a written statement showing the drug’s list price, specifically the price from the beginning of the quarter the ad is running. For people on Medicare or Medicaid, this is huge; it means that before they even talk to their doctor about a new medication, they’ll have a clear idea of what the drug costs before insurance or rebates kick in.
This isn't just about transparency; it's about empowering the consumer. Right now, you might see an ad, ask your doctor for the drug, and only find out the sticker shock when you get to the pharmacy counter. This bill moves that price tag right onto the screen, giving you a chance to weigh the cost against the benefit immediately. It’s like seeing the price of a car right next to the attractive features in the commercial, instead of waiting until you’re in the dealership.
The bill gives the Secretary of Health and Human Services (HHS), specifically through the Centers for Medicare & Medicaid Services (CMS), one year to figure out the exact rules. The CMS Administrator has some important decisions to make (SEC. 2). They need to figure out the best way for that price text to look on the screen—because we all know how companies try to bury fine print. They also have the authority to decide if this price disclosure rule should apply to other types of advertising beyond just TV, like maybe online video ads or print media. Finally, they have to set up the enforcement mechanisms for companies that don't follow the new disclosure rules.
This administrative discretion is where things get interesting. While the main goal is clear—show the price—the effectiveness will depend entirely on how CMS defines 'not misleading' and the visual requirements for the disclosure. If the price is displayed in tiny, fast-scrolling text, it won't achieve the transparency the bill intends. Conversely, if CMS requires a large, clear display, it could genuinely change how drug companies market their products and potentially put pressure on those list prices, which are often astronomical. For the pharmaceutical companies, this means a significant change to their advertising budgets and strategy, forcing them to be upfront about the price of admission.