Legislation would remove tax exemption for patient drug ads—and redirect revenue to protect health care for Marylanders
WHAT: Senate Budget and Taxation Committee hearing on SB 987 to end state tax exemption
for drug corporations’ patient-focused advertising
WHEN: Wednesday, March 11, 2026; 1 p.m.
WHERE: Senate Budget and Taxation Committee, 3 West Miller Seante Office Building, Annapolis, MD
ANNAPOLIS, MD — The Senate Budget and Taxation Committee will hold a public hearing on Senate Bill 987, which would eliminate a state tax deduction for direct-to-consumer pharmaceutical advertising and redirect the resulting revenue to protect health care coverage for Marylanders.
If implemented in Maryland, the bill could generate tens of millions of dollars in new state revenue. This revenue would come at a critical moment. In the coming years, hundreds of thousands of Marylanders are expected to face potential coverage losses due to new federal policy changes and budget cuts enacted by Congress and the Trump administration last year.
“Maryland shouldn’t be subsidizing Big Pharma’s advertising blitz while families struggle to afford their prescriptions,” said bill sponsor Sen. Karen Lewis Young (D-3). “Ending this subsidy stops the state from underwriting a flood of pharmaceutical ads and redirects that revenue to help our residents.”
Under the legislation, the revenue generated by SB 987 would be used in two ways:
- $5 million annually would be invested in Medicaid eligibility operations, helping the state prevent coverage losses caused by increased red tape and administrative hurdles.
- Remaining funds would support state insurance subsidy programs through the Maryland Health Benefit Exchange, helping stabilize premiums and keep coverage affordable for individuals and families purchasing insurance on the marketplace.
“By ending a tax break for Big Pharma’s massive advertising budgets, Maryland can redirect those dollars to where they do real good—protecting access to health care and keeping people insured,” said Vincent DeMarco, president of the Maryland Citizens Health Initiative. “This bill puts care over commercials.”
SB 987 mirrors federal proposals to end tax deductions for direct-to-consumer pharmaceutical advertising. This approach would raise an estimated $1.5–$1.7 billion annually at the federal level.
The United States is one of only two countries that allow prescription drug companies to advertise directly to consumers. Pharmaceutical manufacturers spent more than $14 billion in a single year on these ads. Taxpayers are footing the bill for patients to be flooded with unwanted and repeated exposure to ads touting prescription drugs that 82% of Americans say are unreasonably priced.
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Click to take action on this bill: Urgent Call to Action – Maryland Health Care for All
Last modified: March 11, 2026
