The new GENEROUS Model is intended to align Medicaid prescription prices with global standards.
The Centers for Medicare & Medicaid Services (CMS) introduced a pilot program, the GENEROUS Model, designed to reduce prescription drug costs in Medicaid and improve access to critical medications. Beginning in 2026, the program will allow participating states to purchase select drugs at prices comparable to those in other developed countries. The program is part of President Trump’s most-favored-nation (MFN) pricing agenda.
The initiative follows years of rising Medicaid drug spending, which reached $100 billion in 2024. Participating states will adopt standardized coverage rules, helping ensure patients and providers have consistent and predictable access to approved medications.
“Drug prices in the U.S. remain far too high,” said CMS Innovation Center Director Abe Sutton. “GENEROUS aims to ensure that Medicaid pricing will be on par with those in other developed nations. My hope is that all eligible Medicaid programs choose to participate in the pilot to help ensure that their Medicaid dollars can go further to support those in need.”
As the Lord Leads, Pray with Us…
- For Director Sutton to seek the Lord as he oversees the CMS Innovation Center.
- For Secretary Kennedy and CMS Director Dr. Oz as they implement the president’s MFN agenda.
Sources: Centers for Medicare and Medicaid Services
