Madam President, I ask unanimous consent that the text of the bill be printed in the Record. Madam President, most Americans spent more time at home watching television during the pandemic. I know I…
Madam President, I ask unanimous consent that the text of the bill be printed in the Record.
Madam President, most Americans spent more time at home watching television during the pandemic. I know I did. And what was one of the most common commercials we saw? Direct-to-consumer drug ads. You know, those fancy commercials with catchy music, celebrity actors, and swinging golf clubs? Even before COVID, Americans saw an average of nine ads per day. Every year, the pharmaceutical industry spends more than $6 billion on ads--$6 billion. That is the same as the entire budget of the Food and Drug Administration. In fact, we know that most top Pharma companies spend more on their advertising budget than on drug research and development.
It turns out, the United States is one of only two countries in the world that even allows these commercials. Can you guess the other? New Zealand.
Do you want to know why Pharma spends so much money promoting their drugs? Because it increases their profit margins. Pharma pushes these ads because they steer patients to specific, expensive medications-- whether a patient actually needs the drugs or not. And sometimes it is easier in a 10-minute meeting for the doctor to just write the prescription than to take the time to explain why the drug may not be needed or a less expensive, generic version might be a better choice. Pharma thinks if they pummel you with enough ads that you finally learn how to spell Xarelto, you will insist to your doctor that this is the blood thinner you need though a less expensive option would be just as effective.
With billions in targeted spending, patients are bombarded with information--don't take Xarelto if you are allergic to Xarelto--but kept in the dark on one crucial factor--the price.
Take Rinvoq, which is manufactured by Illinois-based AbbVie for eczema and arthritis. It is now the most-advertised drug on television--replacing two other AbbVie medications, Humira and Skyrizi. AbbVie spent $315 million last year on TV ads for Rinvoq alone. But nowhere in the ad do they tell you it costs $6,100 per month.
Well, Senator Grassley and I think it is time for Big Pharma to end the secrecy. If they are advertising a drug, they should disclose the price right up front. It is a basic transparency measure for patients. Consumer protection 101. So today, we are reintroducing bipartisan legislation to require price disclosures in direct-to-consumer drugs ads, or DTC ads. Our plan is simple, and it has actually passed the Senate once before.
Here is why we think this transparency in drug ads is so important. Earlier this year, a study found that more than two-thirds of drugs advertised on television were considered, quote, ``low-value.'' Those pricey drugs that show you whitewater rafting or rock climbing? They are often no better than other, more affordable drugs.
One-in-five Americans do not take their medications as prescribed because of the cost. They cut their pills in half or skip doses because they can't afford to take their medications as prescribed. So don't you think it is worth knowing right away that Rinvoq could run you $6,100 per month rather than waiting for that moment of truth at the pharmacy counter?
Don't just take my word for it. These advertisements often urge you to ``ask your doctor if it is right for you.'' Well, we asked those doctors. The American Medical Association says: ``Direct-to-consumer advertising inflates demand for new and expensive drugs, even when these drugs may not be appropriate.''
As Democrats are working in Washington to avoid default and prevent our economy from crashing and to preserve the solvency of Medicare, we asked the Government Accountability Office, GAO, to look at the impact of these DTC ads on Medicare's budget. The GAO found that between 2016 and 2018, drugs advertised on television accounted for 58 percent of Medicare's spending. These DTC ads ballooned Medicare spending on a small handful of drugs, costing the Medicare Program $320 billion over 3 years. Humira topped the list with $500 million in advertising in 2018, which contributed to $2.4 billion in Medicare costs.
I used this chart in 2017 when I first introduced this legislation, and when the monthly cost of Humira was $3,700 per month. But as you can see, the cost of Humira is now $6,900 per month. Shouldn't AbbVie-- makers of Humira--disclose that price to you so you can use this information when making treatment decisions? If they did, AbbVie may think twice before raising the price.
Our DTC bill is supported by Democrats and Republicans, the AARP, American Medical Association, American Hospital Association, and 88 percent of Americans. President Trump supported our bill. This bill has passed the Senate before. And several Republicans have included this provision in larger packages they have supported. The only opposition comes from one place: Pharma. They hate the idea of being honest with patients about the price of their drugs and they are looking for Senators to help keep their secret.
So when the Senate considers drug pricing legislation in the coming weeks, I will ask for a vote on this bipartisan policy. Senator Grassley has been a great partner in this effort; and we will work to bring this dose of sunshine to the airwaves. It is about time Americans catch a break when it comes to the cost of drugs.
Madam President, I ask unanimous consent that the text of the bill be printed in the Record.
