Pharmaceutical Advertising and Prudent Purchasing Act

Pharmaceutical Advertising and Prudent Purchasing Act - Amends title XIX (Medicaid) of the Social Security Act to provide for increased rebates under the Medicaid program for prescription drugs directly advertised to consumers.

Requires the Secretary of Health and Human Services (Secretary) and the Secretary of Veterans Affairs to develop and implement procedures under which any master agreement, pricing agreement, or contract for the procurement or purchase of a covered drug or a covered outpatient drug by a federal agency or reimbursement program shall provide that the agency or program shall pay a negotiated reduced price for such drug unless the manufacturer has certified to the head of the agency or program that the drug was not directly advertised to consumers during the 12-month period preceding the date of such procurement or purchase.

Requires the Secretary to report to Congress on strategies to reduce the cost of prescription drugs covered under the Medicare and other federal programs directly advertised to consumers.