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The Administrator of the U.S. Centers for Medicare & Medicaid Services (CMS), Mehmet Oz, highlighted the Trump administration’s efforts to address rising prescription drug costs, citing projected savings of $600 billion over the next decade through a most favored nation drug pricing strategy.
Speaking at the White House press briefing on June 2, Dr. Oz said the administration spent much of the past year negotiating with 17 major pharmaceutical companies that account for more than 80 percent of the branded pharmaceutical market.
“The president demanded that we change it. We spent much of last year negotiating with the 17 largest pharmaceutical companies that drive over 80 per cent of the entire business of branded pharmaceuticals, and every single one of them agreed to a most favored nation drug pricing strategy,” Dr. Oz said.
According to Dr. Oz, the strategy would align U.S. drug prices more closely with prices paid in other countries.
“It doesn’t mean price fixing. We’re not telling pharmaceutical companies what to charge,” he added. “We’re saying to them, whatever you charge us, you got to charge the other folks, which means we might be able to help you overseas to get better pricing, so that you can make up some of the losses that you’ll experience here.”
Dr. Oz said affordability remains a major challenge for many Americans, noting that nearly one in three people leave pharmacies without filling prescribed medications because of cost, particularly when it comes to branded drugs.
He argued that U.S. consumers often pay significantly more than patients in other countries for the same medications, even when those drugs are manufactured in the same facilities.
“It’s global freeloading. It’s wrong,” he said.
Dr. Oz cited estimates from the Council of Economic Advisers projecting that the administration’s negotiated pricing program could generate approximately $600 billion in savings over the next 10 years.
He also highlighted the expansion of the TrumpRx.gov website, which he said now includes an additional 160 medications. The platform already featured roughly 600 drugs before the latest update.
According to Dr. Oz, the website allows consumers to compare medication prices and determine whether they are receiving the best available price at their local pharmacy.
“So, it’s a transparency site. It gives everybody the ability to make important decisions about medications they’re purchasing with full knowledge of what the cost of those medications are, and that’s important. Because transparency drives cost-effective changes in how we procure and consume products,” he said.
Dr. Oz added that the site has attracted approximately 12 million unique visitors and has generated an estimated $500 million in savings, a figure he said continues to grow as awareness of the program increases.
“It is our great hope and belief that the average American, before they make a purchasing decision for a pharmaceutical product will start using Trump rx.gov as a standard, as a baseline to take advantage of something that’s been given to people,” he said, adding, “There’s no money made from this site. The government does not charge money to people using this site. It’s an opportunity for you to be in power.”
Dr. Oz also announced that beginning July 1, Medicare beneficiaries who qualify for GLP-1 medications, commonly used for weight management, will be able to access those treatments for $50 per month.
He noted that the list price of many of these medications exceeds $1,000 per month and said the administration has focused on reducing costs to improve access.
According to Dr. Oz, wider access to these medications could help address obesity and reduce the risk of associated conditions, including diabetes, hypertension, kidney disease, heart disease, stroke, dementia, and certain cancers.
He said the administration believes lowering the cost of these therapies could lead to significant long-term health benefits for eligible patients.
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