Bill > HR3789

This bill aims to increase transparency in pharmaceutical pricing by requiring direct-to-consumer (DTC) drug advertisements to include the wholesale acquisition cost (WAC) for a 30-day supply or typical treatment course. The legislation applies to prescription drugs and biological products covered by Medicare or Medicaid, with an exemption for medications costing less than $35 for a typical supply. Manufacturers would be required to clearly and conspicuously disclose the list price in both visual and audio components of their advertisements, with the option to explain that actual consumer costs may vary depending on insurance coverage. The bill is motivated by findings that DTC advertising can inflate demand for expensive drugs, that consumers often underestimate medication costs, and that price transparency can help patients make more informed healthcare decisions. The legislation would impose civil penalties of up to $100,000 for each violation and requires the Secretary of Health and Human Services to establish specific regulations for implementing these disclosure requirements by July 1, 2026. The bill highlights that the United States is one of only two developed countries allowing DTC pharmaceutical advertising, and that such advertising can significantly influence prescription patterns, potentially leading to less clinically appropriate or more expensive medication choices.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/3789/all-info