Maryland Bill Would End Tax Breaks for Pharmaceutical Drug Ads

Maryland lawmakers are advancing legislation to eliminate tax breaks for pharmaceutical companies on direct-to-consumer drug advertisements, with 73% of state residents supporting the measure according to a new poll conducted by OpinionWorks. The bill would generate at least $23 million annually to help fund Medicaid and the Maryland Health Benefit Exchange, the state's public health insurance marketplace.

"There is no need for the state to subsidize Big Pharma's exorbitant spending on direct-to-consumer drug advertisements," said Vincent DeMarco, president of Maryland Healthcare for All! "Ending this unnecessary tax break will generate at least $23 million a year, which will help Maryland keep more people insured. This bill puts care over commercials."

Pharmaceutical manufacturers spent an estimated $14 billion on direct-to-consumer drug ads in 2023. "These costs inevitably get passed down to businesses, governments and of course, consumers who are struggling to pay for their prescriptions," said Del. Natalie Ziegler, (D-Howard County), a sponsor of the bill. "We all pay for these ads in the form of higher drug prices and overall higher health care costs."

The U.S. is only one of two countries in the world that allow direct-to-consumer drug ads, the other is New Zealand.

The poll also showed broad support for government healthcare programs in Maryland, with 85% of residents saying Medicaid is important to their community and 88% saying Maryland should help control healthcare costs to ensure people have access to the coverage they need. About two thirds of Marylanders are opposed to the Trump Administration's attempt to put more regulations on Medicaid, which could push about one hundred and thirty thousand residents off the rolls.

If passed, the bill would go into effect in July.