New Senate Bill Seeks to Disallow DTC Deductions 

As ad industry leaders had feared, the Senate appears to be taking another look at direct-to-consumer advertising as a funding source for healthcare reform. Senator Al Franken (D-MN), along with co-sponsors Senators Sherrod Brown (D-OH) and Sheldon Whitehouse (D-RI), have introduced a bill that would disallow, as an ordinary and necessary business expense, the costs of all advertising and marketing of prescription medications.

The three Senators hope to add their bill to the Senate healthcare reform bill now being prepared by Senators Reid and Baucus and representatives of the White House. If it is not included in the Leadership bill, they have said they plan to offer it as a floor amendment.

The Advertising Coalition, which is comprised of the major advertising, marketing and media players in Washington, has contacted all Senators outlining the industry’s objections to the Franken bill. This is part of a very aggressive 4A’s and industry effort to head off any further action on the Franken proposal before it can gain wider support.

A final draft of the Leadership bill is not expected for several weeks and active Senate floor consideration may be a month or more away. The 4A’s will continue its outreach to key Senators and staff. Meanwhile, please contact the 4A’s Washington office with questions.

  Download the Advertising Coalition Letter