Floor Remarks by Senator Chuck Grassley of Iowa
On Transparency in Prescription Drug Advertising
Thursday, July 26, 2018
Every American within earshot of a television has heard ads for prescription drugs. These ads promise patients relief from nearly every medical problem. The pharmaceutical companies want you to know there is a drug on the market to help you. And they want you to talk to your doctor about the newest drug.
As many of my colleagues know, I’m an outspoken supporter for transparency. From the Physician Payment Sunshine law to whistleblower protections, I am a strong believer that transparency keeps citizens informed.
Senator Durbin and I have amendments to the current funding bill which would shine the transparency light on prescription drug prices. These amendments would allow patients and their doctors make informed decisions.
Drug advertisers want to tell consumers all of the benefits of the drugs. Drug advertisers are required to tell you about the side effects. That is usually in small print and spoken very rapidly.
But, they aren’t as gung-ho to share how much it will cost.$6 billion is what pharmaceutical companies spent on direct to consumer advertising last year. Why would they spend that amount on TV commercials? Because it works.
By bypassing the trusted physician and the ability of patients to decide for themselves, TV ads increase prescription drug utilization and drug spending. This increases drug costs to patients and taxpayers. In one case, a single drug in Medicaid cost the taxpayers an additional $207 million just because of these ads.
The President’s blueprint to lower drug costs includes a provision for FDA to require the inclusion of the list price in these ads. Senator Durbin and I agree. This is a simple, common sense step to get drug prices down for our constituents. It is not the only answer, but it is a concrete first step.
Other steps include enacting the CREATES legislation introduced by Senators Leahy, Lee, Klouchar, and myself. Or, we could enact Pay for Delay introduced by Senator Klobuchar and myself. Or, Commissioner Gottleib could come up with a plan for importation of safe prescription drugs from Canada and other trusted countries.
Madame President, consumers today are promised the sun, moon, and stars if they will simply get a prescription filled. My friend Senator Durbin and I want to improve transparency in prescription drug advertising so that consumers can decide for themselves. Our amendments would simply clarify that the Secretary of HHS has the authority to require drug companies to report the list price on advertisements.
Consumers know the price of every other item they purchase before they make their decision. This is a simple free market principle.
I urge all of my colleagues to support this effort to lower drug price for all Americans.
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