Bill Overview
Title: No Tax Breaks for Drug Ads Act
Description: This bill prohibits a tax deduction for expenses relating to direct-to-consumer advertising of prescription drugs. Direct-to-consumer advertising is any dissemination, by or on behalf of a sponsor of a prescription drug product, of an advertisement that is in regard to the drug product and primarily targeted to the general public.
Sponsors: Rep. Slotkin, Elissa [D-MI-8]
Target Audience
Population: People globally exposed to pharmaceutical advertising
Estimated Size: 250000000
- The pharmaceutical industry is a major global industry impacting all populations where medications are marketed and sold.
- In countries allowing direct-to-consumer advertising of prescription drugs, all individuals can be indirectly impacted by changes in drug promotion strategies, potentially affecting drug awareness and pricing.
- The global population of adults and seniors is especially likely to be targeted by such advertisements, as these groups utilize prescription medications extensively.
Reasoning
- The policy primarily affects pharmaceutical companies by removing tax deductions related to advertising costs. This might reduce the volume of advertising, potentially altering drug prices and consumer awareness, though consumers aren't directly targeted by the fiscal change.
- Parents and the elderly, who are frequent users of prescription drugs influenced by direct-to-consumer advertising, might see indirect effects such as price changes or reduced exposure to new treatment awareness.
- Different demographic segments might experience varying levels of impact based on their media consumption habits and sensitivity to advertisement-driven drug choice decisions.
- The policy's financial impact on the drug industry is less than 1% of the projected US advertising spend on prescription drugs over the next decade, meaning significant consumer-level changes might not manifest rapidly or be easily observable.
Simulated Interviews
marketing specialist (New York, NY)
Age: 33 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I generally tune out drug ads, but I know they remind some people to ask their doctors for prescriptions they've seen on TV.
- If companies advertise less, maybe prices could come down for some drugs I use occasionally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 7 | 6 |
junior high school teacher (Tucson, AZ)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I notice a lot of drug commercials and occasionally ask my doctor about them.
- I worry if ads stop, doctors might not consider all treatment options.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 7 |
retired (Des Moines, IA)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- Limiting drug advertising could mean fewer breakthrough treatments are recognized early by patients.
- I rely on ads to know which new treatments to explore with my doctor.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 7 | 5 |
software engineer (Seattle, WA)
Age: 28 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- Never really noticed those drug ads—I'm more concerned about privacy issues than drug marketing.
- It's likely that these ads don't influence me, personally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
pharmacist (Atlanta, GA)
Age: 54 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Although patients might benefit from awareness, often they request brand-name drugs they cannot afford because of ads.
- This policy might drive curiosity back to pharmacies and healthcare providers, which could be good.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
graphic designer (San Francisco, CA)
Age: 39 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- Ads help people like me stay informed about new treatment options, even though they can be annoying.
- If people become less informed about treatment options, it could negatively affect health outcomes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 7 | 5 |
retired accountant (Miami, FL)
Age: 72 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- As a senior, I learn a lot from TV about maintaining health—drug ads are part of that information cycle.
- Reducing advertising might lead to less accessible information for people like me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
insurance agent (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- I'm worried about healthcare costs continually rising—maybe cutting back on some advertising will make drugs cheaper.
- This would be a relief to families who already spend too much on healthcare.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
graduate student (Boston, MA)
Age: 26 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- As someone studying public health, I see the merits of limiting influence and focusing on what's best for health outcomes rather than advertising profits.
- This could push for better transparency and honesty in drug promotion.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
retired factory worker (Houston, TX)
Age: 65 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 13/20
Statement of Opinion:
- TV ads help me keep up with treatments—Sometimes I even ask my doctor about them when they stand out.
- If policy reduces TV ads, I'll seek more information during medical visits instead.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $1470000000 (Low: $1260000000, High: $1680000000)
Year 2: $1470000000 (Low: $1260000000, High: $1680000000)
Year 3: $1470000000 (Low: $1260000000, High: $1680000000)
Year 5: $1470000000 (Low: $1260000000, High: $1680000000)
Year 10: $1470000000 (Low: $1260000000, High: $1680000000)
Year 100: $1470000000 (Low: $1260000000, High: $1680000000)
Key Considerations
- Pharmaceutical industry may lobby against the bill, impacting political feasibility.
- Impact on advertising could lead to shifts in public perception and awareness of certain medications.
- There may be pressures on pharmaceutical companies to find alternative marketing strategies or offset costs in other areas, potentially affecting drug prices.