CMS announces new drug payment model for US patients

The USA’s Centers for Medicare & Medicaid Services (CMS) is tackling high drug prices and protecting the American taxpayers through a landmark Innovation Center initiative designed to lower prescription drug spending in Medicaid, improve health outcomes by increasing access to critical medications, and strengthen the Medicaid program overall.

State Medicaid programs that choose to participate in the GENErating cost Reductions fOr US Medicaid (GENEROUS) Model will be able to purchase drugs included in the pilot at prices aligned with those paid in select other countries, allowing Americans to benefit from fairer, more competitive pricing.

“Thanks to President Trump’s leadership and Dr Oz’s bold direction at CMS, we’re expanding access to affordable medicines for millions of Americans,” said Health and Human Services Secretary Robert F Kennedy Jr, adding: “By bringing most-favored-nation pricing to Medicaid, we’re driving down drug protecting the future of care for our most vulnerable citizens.”