Pharmaceutical Research and Manufacturers of America (PHRMA)

Drug prices will now be required in TV ads

A pile of drug capsules and pills.
Drugmakers oppose listing prices on TV. Photo: Philippe Huguen/AFP via Getty Images

The Trump administration finalized a rule Wednesday that will require pharmaceutical companies to post the list prices of their drugs in TV commercials.

Why it matters: The drug industry may sue to block the rule, and many people are skeptical that publishing prices in ads would help patients or successfully shame drugmakers into lowering their prices. But the rule is another sign of bipartisan pressure against the industry and a step toward more transparency.

Part of Trump's drug pricing plan is already happening

Adapted from a Pew report; Chart: Axios Visuals

As part of its plan to lower prescription drug prices, the Trump administration wants to force a major change in the way industry middlemen make their money. But that change is already happening naturally — and drug prices aren't falling.

The big picture: Pharmaceutical companies place the blame for high drug prices on pharmacy benefit managers and their complex system of rebates. The Trump administration largely agrees with that assessment, and has proposed a major overhaul that would make rebates a lot less lucrative for PBMs.