Bill Overview
Title: Plain Prescription Prices Act
Description: This bill requires the Centers for Medicare & Medicaid Services to issue a rule requiring direct-to-consumer television advertisements for prescription drugs that are covered by Medicare or Medicaid to include a textual statement of the drug's list price.
Sponsors: Rep. Williams, Nikema [D-GA-5]
Target Audience
Population: People worldwide interested in or impacted by U.S. prescription drug information.
Estimated Size: 120000000
- Prescription drug advertisements are primarily viewed by adults who are the most common consumers of prescription medications.
- Medicare primarily serves Americans aged 65 and older, as well as some younger individuals with disabilities or specific conditions.
- Many adults in the middle-age category also pay attention to prescription drug ads as they anticipate or manage chronic conditions.
- Globally, direct impacts are limited to the U.S., but this may lead to international awareness and influence policies elsewhere.
Reasoning
- The policy primarily affects those who are Medicare or Medicaid beneficiaries, mainly older adults and those with disabilities.
- Consumers who frequently view television ads for prescription drugs will be directly impacted by increased price transparency.
- The policy may also affect people indirectly by increasing awareness among general consumers about drug pricing, potentially influencing market demand and price negotiations.
- The impact on well-being is considered based on increased knowledge, possible affordability, and reduced stress from unexpected high costs, though the depth of impact may vary.
- Considering the budget constraints, the implementation cost includes the integration and management of text additions to ads, potential price negotiations, and evaluation campaigns.
- The target population includes not just current users of Medicare and Medicaid but also future users and general consumers attentive to drug pricing.
Simulated Interviews
retired teacher (Florida)
Age: 67 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Seeing drug prices on TV ads will help me budget better and avoid surprises at the pharmacy.
- Sometimes medications are advertised that I might need; knowing the price upfront helps make decisions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
retired engineer (California)
Age: 72 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- I think knowing the price helps prevent overcharging, but how often will the price change?
- List prices might differ due to insurance prices, which could be confusing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
financial advisor (New York)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- I am curious if seeing prices will lead to fewer or more expensive prescriptions over time.
- This could be helpful for clients who need financial advice about drug costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
retired (Texas)
Age: 65 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- VA covers most of my costs, so list prices aren't a big factor.
- However, more transparency is always a good thing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
retired nurse (Ohio)
Age: 80 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- Advertisements may not consider different conditions in facilities where choices are limited.
- Still, all efforts adding transparency help families manage finances better.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 3 |
| Year 10 | 3 | 3 |
| Year 20 | 3 | 3 |
student (Washington)
Age: 22 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- I already struggle with costs. Knowing prices in ads could help plan ahead or ask providers about cheaper options.
- It might push companies to offer discounts to uninsured or low-income folks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
small business owner (Illinois)
Age: 56 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- More information might help with future planning, especially if I transition to Medicare.
- I hope the focus remains on reducing overall costs, not just increasing transparency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
part-time teacher (Georgia)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- I'll appreciate knowing what other families pay, maybe it'll encourage insurers to bring prices down.
- However, I'm concerned that it might not change much unless there's follow-up on why prices are what they are.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
factory worker (Missouri)
Age: 51 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- Seeing prices could help when comparing options if layoff happens.
- I'm skeptical about how much the advertised prices will align with what I encounter at the pharmacy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
stay-at-home mom (Arkansas)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I don't think it'll change much for those without specific prescription needs, but it keeps me informed.
- Prescription ads rarely show up in our routine unless watching specific content.
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 | 5 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $15000000 (Low: $10000000, High: $25000000)
Year 2: $15500000 (Low: $10500000, High: $26000000)
Year 3: $16000000 (Low: $11000000, High: $27000000)
Year 5: $17000000 (Low: $12000000, High: $29000000)
Year 10: $18000000 (Low: $13000000, High: $31000000)
Year 100: $25000000 (Low: $19000000, High: $40000000)
Key Considerations
- Potential for reduced advertising budgets impacting media industry revenue.
- Need for compliance checks and potential penalties for non-compliance impacting administrative budgets.
- Possible industry pushback due to proprietary concerns over pricing information.