WASHINGTON, D.C. – Last week U.S. Senators Josh Hawley (R-Mo.) and Jeanne Shaheen (D-N.H.) introduced the No Handouts for Drug Advertisements Act, which would end federal subsidies for pharmaceutical company advertising.
Current law allows pharmaceutical companies to claim business deductions on direct-to-consumer advertising, subsidizing their publicity at taxpayers’ expense. Direct-to-consumer advertising contributes to increased healthcare costs and encourages patients to request specific brand-name drugs that may be substantially more expensive than more effective alternatives, including lifestyle changes. The Senators’ legislation would close this loophole.
“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.”
“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.”
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.
Read the full bill text here.