PhRMA’s Defensive Move On DTC Ads: Putting Drug List Prices ‘In Context’

Member companies’ direct-to-consumer TV ads will direct patients to information about drug costs – including list price, estimated out-of-pocket costs for the drug, and availability of financial assistance – under a voluntary program that takes effect in April 2019; initiative falls short of mandatory list price disclosures proposed by Trump Administration.

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The Pharmaceutical Research and Manufacturers of America’s (PhRMA) new plan for conveying information about drug costs to consumers may be viewed as a defensive moved aimed at heading off a regulatory requirement to include list prices in direct-to-consumer (DTC) advertising. However, given the potential constitutional concerns inherent with any regulatory requirement, PhRMA’s voluntary approach might just be the one that ultimately prevails.

The voluntarily program also allows PhRMA to continue to shape the drug pricing conversation by framing the impact that other players in the healthcare supply chain have on the costs that consumers ultimately pay at the

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