HHS Brings Most-Favored-Nation Pricing to Medicaid Drug Pilot

The Trump administration announced a payment model that will allow state Medicaid programs to purchase drugs at prices paid by other countries.

The Generating Cost Reductions for U.S. Medicaid (GENEROUS) Model announced Thursday will allow the Centers for Medicare & Medicaid Services to negotiate with manufacturers to lower prices, after which participating states can implement uniform coverage criteria for their Medicaid beneficiaries.

The Medicaid pilot comes as part of President Donald Trump’s initiative to tie US drug prices to lower prices paid abroad and follows an executive order on “most-favored-nation” pricing signed in May.

The CMS estimates that gross spending ...