WASHINGTON, D.C. — U.S. Senator Angus King (I-ME) is cosponsoring legislation to promote transparency, boost competition, and bring down the cost of prescription drugs. The bipartisan Drug-Price Transparency for Consumers (DTC) Act would require price disclosures on advertisements for prescription drugs in order to inform patients who are considering certain medications after seeing television commercials. By requiring direct-to-consumer (DTC) advertisements for prescription drugs to include a disclosure of the list price, patients can make informed choices when inundated with drug commercials and pharmaceutical companies may reconsider their pricing and advertising tactics. 

Each year, the pharmaceutical industry spends $6 billion in DTC drug advertising to fill the airwaves with ads, resulting in the average American seeing nine DTC ads each day. Studies show that these commercials often steer patients to more expensive drugs, even when a patient may not need the medication or a lower-cost generic is available. Studies show that patients are more likely to ask their doctor, and ultimately receive a prescription, for a specific drug when they have seen ads for it.  For these reasons, most countries have banned DTC prescription drug advertising — the United States and New Zealand are the only industrialized nations that allow these ads.

“Current advertisement practices in the pharmaceutical industry allow drug companies to unfairly inflate the efficacy of their products while concealing their exorbitant prices,” said Senator King. “The Drug-Price Transparency for Consumers (DTC) Act would ensure that Maine people have more transparency, choice, and competition in the prescription drug marketplace. I want to thank my colleagues on both sides of the aisle for putting Americans first above the profits of big pharma.”

The Government Accountability Office (GAO) has found that prescription drugs advertised directly to consumers accounted for more than half of Medicare’s spending on drugs between 2016 and 2018, while a 2023 study in the Journal of the American Medical Association found that two-thirds of advertised drugs offered “low therapeutic value.” Additionally, a Kaiser survey found that 88 percent of Americans support this price disclosure policy for advertisements.

Below are some key findings from the GAO report:

1. Two-thirds of pharma’s spending between 2016 and 2018 on DTC ads ($12 billion out of $18 billion total) was concentrated on just 39 drugs.
1. During this period, these advertised drugs accounted for 58 percent of Medicare’s spending on drugs ($320 billion out of $560 billion). 
2. Among the top 10 drugs with the highest cost to Medicare, four were also in the top 10 for advertising spending (Humira, Eliquis, Keytruda, Lyrica).

Joining King on this bill are Senators Dick Durbin (D-IL), Chuck Grassley (R-IA), Joni Ernst (R-IA), Tina Smith (D-MN), Peter Welch (D-VT), Richard Blumenthal (D-CT), and Tammy Baldwin (D-WI).

Senator King has consistently worked to lower healthcare costs and increase transparency for Maine people. Last year, he introduced bicameral legislation to prohibit direct-to-consumer drug advertising of pharmaceutical drugs in the first three years after the drug receives Federal Drug Administration (FDA) approval. Senator King also cosponsored the Health Care Affordability Act which permanently extends enhanced Premium Tax Credits (PTCs) — tax subsidies that increase the amount of financial assistance available to people buying their own health insurance. Additionally, Senator King has introduced legislation to prohibit pharmaceutical drug manufacturers from claiming tax deductions for consumer advertising expenses.

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