Summary

Requires many direct-to-consumer advertisements for prescription drugs and biological products covered by Medicare or Medicaid to display the drug’s wholesale acquisition cost (WAC) or typical 30‑day price. Products with a 30‑day WAC under $35 are exempt. The Department must issue a final rule within one year of enactment and ads must comply by July 1, 2026; manufacturers who do not comply may face civil money penalties up to $100,000 per violation.

Key Points

• Requires many direct-to-consumer prescription drug ads for Medicare/Medicaid‑covered products to display wholesale acquisition cost (WAC).
• Products with a 30‑day (or typical course) WAC under $35 are exempt.
• HHS must issue final regulations within one year; ads must comply by July 1, 2026.
• Manufacturers face civil money penalties up to $100,000 per violation for noncompliance.
• Focuses on list price (WAC) disclosure, not negotiated or out‑of‑pocket prices.
• Aims to increase price transparency and reduce wasteful federal spending on high‑cost drugs.
• Will require manufacturers and advertisers to update ad content and compliance systems to reflect WAC changes.
• Details on format, placement, and exceptions will be set through HHS rulemaking.

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