CHARLESTON, W.Va. — An official with the U.S. Department of Health and Human Services says a new rule requiring drug makers to note the price of prescription drugs in television advertisements is to increase transparency.

The department announced the rule earlier this month, which will require the notation in advertisements if the drug is covered by Medicare or Medicaid. The policy affects drugs that cost at least $35 for a month’s supply.

Department Region 3 director Matt Baker said on last Wednesday’s MetroNews “Talkline” said they believe the new system will result in lower prices.

“(In) the system we have today, all the incentives are for manufacturers to raise prices rather than to lower them,” he said. “Making the prices easily accessible in advertising is an important way to create an environment where companies can actually compete on the price.”

Baker added research collected by the department shows disclosing prices can lead to lower prices.

The prices will have to be shown on screen in legible text.

“Based on the comments that we heard across the country, we believe that the required language provides a sufficient, detailed standard for how that information is going to be conveyed in advertisements,” Baker said.

The new rule is expected to go into effect around July 11.