Advocacy Group Finds Limiting Big Pharma’s TV Advertising (Or Tax Deduction) Could Benefit The Federal Budget

There’s lots of talk in Washington, D.C. ,about the federal budget. Here’s a new wrinkle: New research suggests that limiting the pharmaceutical industry’s direct-to-consumer advertising — or eliminating the tax benefit — could save more money than previously thought.

The research, by the Campaign for Sustainable Rx Pricing and reported by Politico, finds that taxing or banning drugmaker advertisements could raise federal revenues by $1.5 billion to $1.7 billion annually. That estimate is based on what drug companies would pay to the U.S. Treasury if advertising expenses weren’t tax-deductible.

“The findings of this study should add to the bipartisan momentum in Washington to bring greater scrutiny to the pharmaceutical industry’s aggressive marketing practices in the U.S., their impact on drug prices, and solutions to discourage or tax Big Pharma’s DTC (direct to consumer) advertising,” CSRxP executive director Lauren Aronson said in a statement.

The Campaign for Sustainable Rx Pricing is an advocacy group that includes insurers, doctors and pharmacists among its members. Clearly the group has an agenda, but Voices for Affordable Health often hears from consumers who are sick of pharmaceutical commercials.

What about you? Tell us where you stand at Voices for Affordable Health.