CMS to Negotiate with Drug Manufacturers to Lower Prescription Drug Costs for Medicaid

Centers for Medicare & Medicaid Services

CMS to Negotiate with Drug Manufacturers to Lower Prescription Drug Costs for Medicaid

What’s new: CMS announces the GENEROUS (GENErating cost Reductions fOr U.S. Medicaid) Model designed to reduce drug costs in the Medicaid program, which supports our most vulnerable populations.

Why it matters: By engaging directly with drug manufacturers, CMS can negotiate lower prices to what other comparable countries pay, reducing burden to Medicaid programs and allowing for States to do more for the American people.

What to expect: CMS is issuing a Request for Applications to solicit drug manufacturers to participate in negotiations and will issue a Letter of Intent for state Medicaid programs; GENEROUS will launch in 2026 with state Medicaid agencies enrolling on a rolling basis.

The big picture: GENEROUS reflects this Administration and HHS Secretary’s commitment to Make American Healthier Again by tackling high drug prices.

Find out more:

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