The Department of Health and Human Services announced a new policy to improve transparency in the pharmaceutical industry.
Starting this summer, TV commercials for prescription drugs covered by Medicaid or Medicare must mention the list price if it exceeds $35 for the standard treatment course or monthly supply. The policy has no enforcement mechanism but depends on companies suing rivals that violate the standard. The HHS will also publish a list of drugs with non-compliant ads.
“Patients who are struggling with high drug costs are in that position because of the high list prices that drug companies set,” HHS Secretary Alex Azar said in a press release. “Making those prices more transparent is a significant step in President Trump’s efforts to reform our prescription drug markets and put patients in charge of their own healthcare.”