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CMS Administrator Oz reports record drug price drops and outlines Medicare fraud cuts

CMS Administrator Dr. Mehmet Oz said 'Most-Favored-Nation' pricing is driving a record drop in drug costs while advocating for parental choice in vaccine schedules.

Published August 23, 2026 at 12:50 PM EDT

The short answer

CMS Administrator Dr. Mehmet Oz said 'Most-Favored-Nation' pricing is driving a record drop in drug costs while advocating for parental choice in vaccine schedules. Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services (CMS), stated in an interview aired August 23, 2026, that drug prices are falling at the fastest rate in 63 years.

CMS Administrator Oz reports record drug price drops and outlines Medicare fraud cuts

The Facts

Who
Dr. Mehmet Oz, CMS Administrator
What
Dr. Mehmet Oz discussed drug price reductions, Medicare fraud, and vaccination policies.
When
August 23, 2026
Where
Washington, D.C.
Why
The administration's pricing policies and fraud reduction efforts affect Medicare solvency and out-of-pocket costs for millions of patients.

Timeline of what happened

Key dates and decisions, in the order they occurred.

  1. August 16, 2022

    Inflation Reduction Act signed into law

  2. August 23, 2026

    Interview with CMS Administrator Mehmet Oz airs on 'Face the Nation'

Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services (CMS), stated in an interview aired August 23, 2026, that drug prices are falling at the fastest rate in 63 years. Oz attributed the decline to the administration's "Most-Favored-Nation" drug pricing policy, which requires pharmaceutical companies to offer the same prices in the United States that they charge in overseas markets. According to Oz, 17 major drug companies representing 85% of the sector have agreed to these terms.

The CMS administrator also discussed the impact of the Inflation Reduction Act (IRA), a 2022 law that granted Medicare the authority to negotiate drug prices. While Oz acknowledged the law provided tools for price reductions, he characterized the "Most-Favored-Nation" policy and the "TrumpRx.gov" platform as the primary drivers of current savings. He stated that the administration is working to codify this pricing model through the proposed Great American Health Act.

Regarding specific medications, Oz reported that GLP-1 weight-loss drugs, which previously cost over $1,000 per month, are now available to eligible Medicare beneficiaries for $50 per month. He also noted that fertility drug prices have decreased by 90%. Additionally, Oz stated that the agency cut $42 billion in fraud from Medicare last year, primarily through a moratorium on durable medical equipment fraud, in an effort to extend the solvency of the Medicare trust fund.

The interview also addressed public health concerns following a report that national kindergarten vaccination rates for measles have fallen to 92%, below the 95% herd immunity threshold. When asked about President Trump's comments describing the combined MMR (measles, mumps, and rubella) vaccine as "lethal," Oz stated the vaccine is not lethal but advocated for parental autonomy. He suggested that parents should have the choice to delay certain vaccinations, such as Hepatitis B, if they believe their children are not in high-risk categories.

The policy intends to eliminate what the administration calls "global freeloading" by ensuring U.S. patients do not pay more than patients in Europe or Asia for the same products. CMS reports that the $42 billion recovered from fraud last year is intended to bolster the Medicare trust fund, which is currently projected to become insolvent in six to seven years. If insolvency occurs, the Committee for a Responsible Budget projects that payments could be cut by 11%, impacting the healthcare providers and facilities that serve the roughly 65 million people currently enrolled in the program.

The administration's emphasis on parental choice regarding vaccines comes as measles vaccination rates remain below the threshold required to prevent community spread. While CMS indicates it will continue to pay for vaccines regardless of the schedule chosen, a move toward separate shots or delayed administration could increase the number of doctor visits required for families. The proposed Great American Health Act remains the central legislative vehicle for codifying these changes, though its final text and the specific timeline for broader implementation of the medical record sharing technology—currently used by 50% of patients—have not been fully detailed.

What happens next: The administration plans to introduce or advance the Great American Health Act following the upcoming midterm elections. The CMS health tech ecosystem, which currently includes pledges from 800 companies, continues to work toward increasing patient access to medical records. Dates for legislative votes or further changes to the Medicare negotiation schedule were not reported.

Summaries are written by The Plain Record to state the facts of a story plainly and without political slant. See our editorial standards, or report a correction.

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Questions readers ask

What happened: CMS Administrator Oz reports record drug price drops and outlines Medicare fraud cuts?

Dr. Mehmet Oz discussed drug price reductions, Medicare fraud, and vaccination policies.

Who is involved?

Dr. Mehmet Oz, CMS Administrator

When did this happen?

August 23, 2026

Where did this happen?

Washington, D.C.

Why does this matter?

The administration's pricing policies and fraud reduction efforts affect Medicare solvency and out-of-pocket costs for millions of patients.