Trump's week in review: Cuts TPS status for South Sudan; Nigerian pres. responds to threat over Christian persecution

4. CMS announces new drug payment model for Medicaid

The Centers for Medicare and Medicaid Services released a statement Thursday announcing that it had launched a new initiative titled the GENErating cost Reductions for U.S. Medicaid (GENEROUS) Model that will enable state Medicaid programs to purchase drugs included in the pilot program at “prices aligned with those paid in select other countries.”

CMS maintains that this will enable “Americans to benefit from fairer, more competitive pricing.” 

“Under the leadership of President Trump and Secretary Kennedy, CMS is making a historic commitment to driving down the cost of drug prices and ensuring Americans have access to life-saving medications,” stated CMS Administrator Dr. Mehmet Oz.

“The GENEROUS Model will help ensure state Medicaid programs are paying a fair and reasonable price for prescription drugs — furthering our efforts to preserve funds for our most vulnerable.” 

As explained in a fact sheet about the GENEROUS Model, which is slated to launch in January, “GENEROUS builds on the work the states have done to manage Medicaid drug costs through the Medicaid Drug Rebate Program (MDRP), in which states receive rebates from manufacturers in exchange for coverage of manufacturers’ covered outpatient drugs.” 

Manufacturers that have an active rebate with HHS under the MDRP are eligible to participate in the GENEROUS Model, as are all state Medicaid programs that submit a letter of intent to CMS.