Drug Prices In Ads Could Cause Sticker Shock For Consumers, Forcing Pharma To Tinker With Marketing Strategies
Experts don't predict the proposed requirement would cause a broad pullback of ad campaigns, but companies will have to make some tough, and possibly expensive, choices. Meanwhile, President Donald Trump hints at a big win for drugmakers with a big change to Medicaid's rebate rule.
The Wall Street Journal:
Proposed Rule Requiring Drug Prices In TV Ads Could Impact Marketing Strategies
Pharmaceutical marketers already follow a stack of rules when they advertise, which includes listing dangerous possible side effects to a sometimes unnerving length. Now a newly proposed requirement to disclose list prices for drugs on-screen during television commercials could add yet another headache for one of Madison Avenue’s most important categories. Health-care ad executives don’t expect a broad pullback in pharmaceutical advertising on TV, but they said the rule could create sticker shock among consumers and push drugmakers to rethink their marketing strategies. (Bruell, 10/17)
The Trump Administration Hints At New Drug Pricing Regulations
The White House on Wednesday provided the clearest evidence yet that, eventually, some drug makers might not have to cut Medicaid the best deal on prescription drugs. It would be a big win for drug makers, who say the current rules — which require every drug company to give Medicaid programs the lowest possible price, or “best price,” for any drug they sell — don’t give them the flexibility to test new payment ideas, like paying for drugs based on how well they work. (Florko, 10/17)