Savings Under Most-Favored-Nation Pricing for Prescription Drugs in Medicaid

CMS’ proposed GENEROUS payment model, which would apply most-favored-nation pricing to brand-name drugs in Medicaid, was projected to generate an estimated $8.6 billion in savings across 47 states and the District of Columbia, accounting for nearly 35% of net Medicaid spending after rebates. These savings would be concentrated among newer products and states that currently negotiate smaller supplemental rebates.