President Trump announced that his most-favored-nation drug pricing agreements with pharmaceutical companies are now being extended to Medicaid programs in all 50 states, Washington, D.C., and Puerto Rico. Through the GENEROUS Medicaid Payment Model, states will receive rebates ensuring they never pay more than the international price for expensive brand-name drugs.
The initiative has seen voluntary participation from 26 major pharmaceutical companies, including Eli Lilly, Novo Nordisk, AstraZeneca, and AbbVie. The Council of Economic Advisers projects over $64 billion in combined savings—$27.6 billion flowing to state governments and $36.6 billion to the federal government—over the next decade. President Trump stated: “The Council of Economic Advisers estimates that the most-favored-nation deals we’re extending to states today will save Medicaid over $64 billion, and that’s over a relatively short period of time.”
CMS Administrator Dr. Mehmet Oz noted that even Democrat-run states have adopted the policy, describing it as “such a good deal that every state realized they need to take it.” PhRMA chief Steve Ubl criticized the approach by calling it “importing foreign prices from socialist countries” and warning it could threaten innovation and investment.
