All 50 states plus the District of Columbia and Puerto Rico will participate in a program extending most-favored-nation drug prices to state Medicaid programs, President Donald Trump announced on Sept. 18.
“Every state will now have the ability to use those extra billions of dollars to invest in other healthcare improvements or something else,” Trump said from the Oval Office. “States are going to save tens of billions of dollars.”
The program, called the GENEROUS Model, will test whether manufacturer-paid supplemental rebates can align Medicaid drug prices with the most-favored-nation benchmark.
Most-favored-nation prescription drug pricing is Trump’s signature effort to reduce prescription drug prices, which have historically been the highest in the world.
Some 20 prescription drug manufacturers have signed agreements with the government, pledging to offer their lowest available price to the Medicaid program, to reinvest profits in domestic drug production, and to offer some drugs directly to consumers.
At the same time, Trump said other nations have agreed to raise the prices they pay for prescription drugs—in some cases by 300 percent or more.
Governors, including Sarah Huckabee Sanders and Tate Reeves of Mississippi, attended the announcement, praising Trump’s initiative.
This story is developing and will be updated.
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