Ways and Means Committee Hearing Targets DTC Ads
The U.S. House Ways and Means Committee conducted a February 12 hearing on The Cost of Rising Prescription Drug Prices that largely targeted direct-to-consumer advertising of pharmaceuticals. Many members of the committee questioned whether the “favorable” tax treatment of DTC advertising helped to raise the cost of prescription medications. DTC advertising receives the same treatment as the advertising for any other product or service – fully deductible as a normal and necessary business expense.
While some of the witnesses were not favorable towards DTC advertising, none went so far as to claim that limiting DTC would lead to lower drug costs.