Direct-to-Consumer Advertising

Many health policy experts suggest that the growth in direct-to-consumer (DTC) advertising is a major contributor to higher drug costs. Spending on DTC advertising of prescription drugs more than quadrupled between 1996 and 2003, rising from $791 million in 1996 to $3.2 billion in 2003.

The federal government is projected to spend approximately $71.6 billion dollars on prescription drugs in 2007. As our population ages, taxpayers will be asked to foot more and more of the bill through the Medicare prescription drug benefit and Medicaid programs. As patients begin to request more expensive advertised drugs, in spite of the existence of similarly effective generic drugs, the value of DTC advertising must come into question.

Senator Kohl believes that more should be done to educate physicians on the risks and benefits of new drugs and how they compare to older, less expensive drugs. While DTC advertising has a place in our society, it is necessary that we ensure that doctors and patients have all the information they need to make safe and smart decisions about what drugs they will be prescribing and taking. In late 2006, the Government Accountability Office (GAO) released a report prepared at the request of Senator Kohl on the FDA�s oversight of DTC advertising. The report found that the FDA reviews only a very small portion of the DTC materials it receives and cannot ensure that it is identifying the materials it considers to be highest priority. Upon release of the findings, Senator Kohl sent a letter to President Bush, urging him to include additional funding for the FDA in his FY 2008 budget proposal to establish a system to effectively review and regulate DTC advertising of prescription drugs.