ICYMI: Shaheen, Hawley Introduce Bipartisan Bill to End Taxpayer-Funded Pharma Ads, Hold Drug Companies Accountable
(Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH) and Josh Hawley (R-MO) last week introduced the No Handouts for Drug Advertisements Act—bipartisan legislation that would prohibit pharmaceutical companies from claiming tax deductions for expenses on drug advertisements to consumers. Under current law, pharmaceutical companies can deduct the costs of direct-to-consumer advertising, subsidizing their media campaigns at taxpayers’ expense. Shaheen’s and Hawley’s bipartisan legislation would end this practice that contributes to increased health care costs.
“It’s flat-out wrong that drug companies receive huge tax breaks for running ads directly to consumers, especially as taxpayers in my state pay more and more for life-saving drugs,” said Senator Shaheen. “It’s well past time for Congress to step in to end these tax breaks, lower costs for everyday Americans and hold pharmaceutical companies accountable. My bipartisan bill with Senator Hawley offers a practical solution to do just that.”
“For too long, Big Pharma has used our tax dollars to fund ads that push their products directly on patients. That needs to end,” Senator Hawley said. “HHS Secretary RFK, Jr. has made it clear that he wants to ban prescription drug commercials, and I’m proud to introduce legislation to do just that. Making America Healthy Again starts by ending handouts to these corporations and empowering consumers to make the health decision that is truly in their best interest.”
“This bipartisan bill seeks to eliminate a tax break that fuels the flood of prescription drug ads designed to boost profits and drive up prices for patients. The U.S. is one of just two countries that even allow direct-to-consumer drug advertising — there’s no reason taxpayers should be footing the bill for it. We’re proud to support Senators Shaheen and Hawley’s common-sense reform to put patients before pharma profits,” said Merith Basey, Executive Director of Patients for Affordable Drugs Now.
The No Handouts for Drug Advertisements Act would:
- Amend the Internal Revenue Code to disallow tax deductions for expenses related to direct-to-consumer advertising of both prescription drugs and compounded medications.
- Define "direct-to-consumer advertising" as advertisements primarily targeted to the general public through television, radio, direct mail, billboards, internet, social media, and other digital platforms.
Shaheen has spearheaded efforts to combat rising drug prices and make essential medications more affordable, including by supporting key provisions in the Inflation Reduction Act that provide Medicare the ability to directly negotiate the prices of certain high-cost drugs with pharmaceutical manufacturers. As co-chair of the bipartisan U.S. Senate Diabetes Caucus, Shaheen has consistently pressed to hold insulin manufacturers, insurers and pharmacy benefit managers accountable for the skyrocketing cost of life-saving insulin. Her bipartisan legislation with Senator Susan Collins (R-ME), the INSULIN Act, would comprehensively address the skyrocketing costs of insulin and remove barriers to care making it more accessible to millions of Americans.
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