H.R.3789 - Drug-price Transparency for Consumers Act of 2025; DTC Act of 2025 (119th Congress)
Summary
H.R.3789, the Drug-price Transparency for Consumers Act of 2025, aims to amend Title XI of the Social Security Act. The bill mandates that direct-to-consumer (DTC) advertisements for prescription drugs and biological products include disclosures of pricing information, specifically the wholesale acquisition cost (WAC). This requirement applies to drugs covered under Medicare (Title XVIII) and Medicaid (Title XIX).
Expected Effects
The primary effect of this bill would be increased transparency in drug pricing for consumers. This could lead to more informed decisions about medication choices and potentially drive down drug costs through increased competition. The bill also empowers the Secretary of Health and Human Services to enforce these regulations and penalize non-compliant manufacturers.
Potential Benefits
- Increased price transparency, enabling consumers to make more informed decisions about prescription drug purchases.
- Potential for reduced healthcare costs as consumers may opt for lower-cost alternatives.
- Greater awareness of the actual cost of medications, especially for those with high-deductible health plans or coinsurance.
- Could lead to increased competition among pharmaceutical manufacturers, potentially driving down prices.
- May reduce unnecessary prescriptions of higher-cost drugs when more affordable alternatives exist.
Potential Disadvantages
- Pharmaceutical companies may reduce direct-to-consumer advertising, potentially limiting patient awareness of new treatments.
- The disclosed wholesale acquisition cost (WAC) may not accurately reflect the actual out-of-pocket cost for all consumers due to insurance coverage variations.
- Implementation and enforcement may create additional administrative burdens and costs for the Department of Health and Human Services.
- Some argue that focusing solely on WAC does not address the complexities of drug pricing and the role of pharmacy benefit managers (PBMs).
- The exemption for drugs with a WAC less than $35 may exclude a significant portion of medications from the transparency requirement.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to promote informed healthcare decisions and potentially reduce healthcare costs. Congress has the power to regulate interstate commerce (Article I, Section 8), which includes the advertising and sale of pharmaceuticals. The bill does not appear to infringe on any specific constitutional rights or freedoms.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).