Trump Rule Requiring Drug Prices in TV Ads Blocked
July 08 2019 - 9:34PM
Dow Jones News
By Stephanie Armour
A federal judge on Monday blocked a Trump administration rule
requiring drugmakers to put prices in television ads, a central
part of the president's push to lower the cost of prescription
medications.
The decision from U.S. District Judge Amit Mehta in Washington,
D.C., is the latest blow to a number of administrative actions on
health care. Judge Mehta sided with drug companies, saying the
Health and Human Services Department rule would violate free speech
and exceeded the agency's statutory authority.
"But no matter how vexing the problem of spiraling drug costs
may be, HHS cannot do more than what Congress has authorized," he
wrote in his decision. "The responsibility rests with Congress to
act in the first instance."
The lawsuit was brought by three pharmaceutical companies: Merck
& Co., Inc., Eli Lilly and Co. and Amgen Inc.
The rule, completed in May, was part of President Trump's
broader blueprint to lower drug prices and was set to go into
effect July 9. It required list prices to be included in
direct-to-consumer TV ads for most prescription drugs covered by
Medicare and Medicaid. The ruling blocks the rule from going into
effect.
HHS didn't return an email seeking comment, while the Justice
Department declined to comment.
The administration said the goal of the rule was to increase
transparency, which would put pressure on drugmakers to keep prices
low. It argued that list prices matter to patients, especially
consumers with high deductibles who must often pay the full amount.
The U.S., one of the few countries to allow TV ads for drugs,
currently requires them to disclose side effects and other
information.
"If drug companies are ashamed of those prices -- lower them!"
Mr. Trump tweeted in May.
Drugmakers have opposed the mandate, saying the rule could
improperly limit free speech and that providing only the list price
would confuse and mislead consumers who might think they have to
pay more than they actually would. The list price is the figure
initially set by the drugmaker, but it is different from what
consumers generally pay because it doesn't take into account
rebates, discounts and insurance payments.
An industry trade group, PhRMA, said Monday it has taken its
own, voluntary steps to help improve transparency.
"PhRMA has long been concerned about the administration's rule
requiring list prices in direct-to-consumer (DTC) television
advertising," it said in a statement.
In 2017, more than $5.5 billion was spent on prescription-drug
ads, including nearly $4.2 billion on TV ads. Commonly advertised
drugs include AbbVie Inc.'s Humira, which has a list price of more
than $5,000 a month, along with Pfizer Inc.'s Lyrica, which costs
$468 a month, according to data provided under the rule.
"Today's ruling is a step backward in the battle against
skyrocketing drug prices and providing more information to
consumers," AARP, a group for people age 50 or older, said Monday
in a statement.
Write to Stephanie Armour at stephanie.armour@wsj.com
(END) Dow Jones Newswires
July 08, 2019 21:19 ET (01:19 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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