H.R. 3789: Drug-price Transparency for Consumers Act of 2025

This bill, known as the Drug-price Transparency for Consumers Act of 2025, aims to mandate that advertisements for prescription drugs and biological products include clear pricing information. Here’s what it proposes in simple terms:

Key Provisions

• Advertising Requirements: Beginning on July 1, 2026, all direct-to-consumer advertisements for prescription drugs that are covered under Medicare or Medicaid will need to disclose the wholesale acquisition cost (WAC) for a typical 30-day supply or a standard course of treatment. This means that when consumers see ads for these medications, they must also see the listed price.
• Exemption Clause: If the WAC for a 30-day supply of the advertised drug is less than $35, the advertising requirement does not apply. This makes sure that lower-cost drugs are not burdened by the additional requirements.
• Insurance Information: The advertisements must explain that the actual price paid by consumers may vary depending on their insurance coverage.
• Regulatory Timeline: The Secretary of Health and Human Services is tasked with establishing regulations for how these disclosures should be made in advertisements across different media platforms within one year of the bill’s enactment.
• Penalties for Non-compliance: Manufacturers that fail to comply with these advertising requirements could face civil penalties of up to $100,000 for each violation.
• Public Reporting: The Secretary will have the authority to publicly report information regarding manufacturers that do not meet these advertising standards.

Rationale Behind the Bill

The bill is introduced in response to concerns about the lack of transparency in drug pricing. It highlights several points:

• Most advertising is concentrated on a limited number of high-cost drugs, which may distort consumer choices.
• Many Americans are unaware of the actual prices of medications because they often don’t have access to this information.
• By providing pricing information upfront, the bill aims to help consumers make informed choices and potentially promote competition in the pharmaceutical market.
• It is described that better price understanding can lead consumers to ask their doctors for alternatives, potentially lowering costs.

Definitions Included in the Bill

• Prescription Drug: A medication approved by the FDA that can only be obtained with a prescription.
• Biological Product: A type of medicine made from living organisms, also licensed by the FDA.
• Wholesale Acquisition Cost: The price set by manufacturers for wholesale distribution of the drug.

Relevant Companies

• None found