President Trump Requires Drug Companies to Advertise Prices

drug companies

In a move that has gone against strong resistance and lobbying from drug companies, President Trump has given his support for new rules that will require manufacturers to disclose drug prices in consumer advertising. The administration announced the rules after Trump called existing transparency plans “inadequate”.

Trump’s new rule was made in collaboration with the United States Department of Health and Human Services (HHS).

Drug Companies Wholesale Prices Required for Treatments Above $35

The proposed rule change will be applicable to drugs that cost more than $35 for a single month of treatment. Drug companies will now need to include price information in text that is “large enough for people to read.” Manufacturers will be able to include language to indicate that prices can change depending on health insurance coverage.

Lobbying group PhRMA, which represents major drug companies, has expressed strong opposition to the rule change.

PhRMA has up until now been working towards a plan where drug companies would not include pricing on advertisements but would instead direct consumers to a separate online resource. PhRMA argues that wholesale pricing on advertisements would be misleading, as most consumers would pay less for their medication through health insurance.

The Secretary of the HHS has gone on record to say that PhRMA’s proposed system is not enough, making a statement that “list prices matter for American patients. I’ve heard it personally myself and so has the President.”

New Rule Could Prevent Price Increases

It is believed that the proposed rule could prevent anti-consumer price increases on drugs that manufacturers are already selling at a profit. It is unclear at this stage whether Congress would have to approve the changes proposed by the President and the HHS.

PhRMA and related lobbyist groups are likely to raise the issue with lawmakers to have Congress weigh in on the rules.

The proposal for the rule change will be officially announced on Wednesday, and there will be a 60-day period for members of the public to comment on the changes. According to the HHS, it will publish names of companies that do not comply with the rule, and legal action may follow.

President Trump has vowed to bring down drug prices, and this could be a critical step in his effort to do so.

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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