Bills of Congress by U.S. Congress

S.229 - Drug-price Transparency for Consumers Act of 2025; DTC Act of 2025 (119th Congress)

Summary

S.229, 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 a disclosure of pricing information, specifically the wholesale acquisition cost (WAC). This requirement would apply 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: Consumers will have access to the wholesale acquisition cost of advertised drugs.
  • Informed Decision-Making: Patients can make more informed decisions about their healthcare choices, considering cost alongside clinical effectiveness.
  • Potential Cost Savings: Increased awareness of drug prices may lead to consumers choosing lower-cost alternatives.
  • Reduced Healthcare Spending: By promoting cost-consciousness, the bill could help reduce overall healthcare spending, particularly within Medicare and Medicaid.
  • Empowered Consumers: Consumers will be better equipped to discuss drug costs with their doctors and insurance providers.

Potential Disadvantages

  • Limited Impact on Actual Costs: The WAC may not reflect the actual out-of-pocket costs for consumers due to insurance coverage and rebates.
  • Potential for Confusion: Consumers may be confused or misled by the WAC, especially if they do not understand how it relates to their individual costs.
  • Increased Advertising Costs: Drug manufacturers may incur additional costs to comply with the disclosure requirements, potentially leading to higher drug prices.
  • Reduced Advertising: Some manufacturers may choose to reduce or eliminate DTC advertising to avoid disclosing pricing information.
  • Enforcement Challenges: Ensuring compliance with the disclosure requirements and penalizing violations may pose administrative challenges.

Constitutional Alignment

The bill appears to align with the general welfare clause of the Constitution, as it aims to promote informed healthcare decisions and potentially reduce healthcare costs. Specifically, the preamble of the Constitution states the goal to "promote the general Welfare". The bill's focus on regulating commerce (drug advertising) also falls under the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate interstate commerce. 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).