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flag The U.S. will launch a 2026 program to lower Medicaid drug prices by aligning them with international benchmarks.

flag The federal government is launching the GENEROUS Model in January 2026, a voluntary five-year program to lower Medicaid prescription drug costs by aligning U.S. prices with those in other developed countries. flag Administered by CMS, the initiative allows states to negotiate lower drug prices using international benchmarks, with manufacturers optionally participating. flag The program aims to reduce spending, which exceeded $100 billion in 2024, by securing supplemental rebates and sharing savings through reduced federal contributions. flag CMS will accept applications from states and manufacturers later in 2025, with the goal of improving access to affordable medications for low-income Americans.

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