The move, announced Wednesday by Alex M. Azar II, the health and human services secretary, is the most visible action the administration has taken so far to address the rising cost of prescription drugs.
The proposal could be challenged by the drug industry, which argues that revealing the list price will confuse consumers and could violate the companies’ First Amendment rights. While the list price of some drugs can be thousands of dollars a month, patients with insurance that covers their prescriptions frequently pay far less, often less than $50.
“We are moving from a system where people are left in the dark to a system where patients are put in the driver’s seat,” Azar said.
Under the new guidelines — expected to take effect this summer — all direct-to-consumer television advertisements for drugs covered by Medicare or Medicaid must include the list price, also known as the wholesale acquisition price, in their ads, Azar said.
A disclaimer will also state, “if you have insurance that covers drugs, your cost may be different,” according to officials at the Department of Health and Human Services.
Many of the most heavily advertised drugs cost thousands of dollars per month. Two dosing pens of AbbVie’s Humira, which treats rheumatoid arthritis and other conditions, have an average retail price of $5,684, according to the website GoodRx, which tracks drug prices. Another frequently advertised drug, Xeljanz, a Pfizer arthritis medication, costs about $4,840 a month.
The drug industry has pointed out that many patients with insurance coverage pay far less than the list price. “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,” said Stephen J. Ubl, chief executive of the Pharmaceutical Research and Manufacturers of America, the industry trade group.
“If you’re ashamed of your drug prices, change your drug prices,” said Azar. “It’s that simple.”
This article originally appeared in The New York Times.