The Trump administration announced that all 50 states' Medicaid programs will benefit from lower prescription drug prices through the GENEROUS Medicaid Payment Model, with participating pharmaceutical manufacturers providing rebates on brand-name drugs. The model covers hundreds of drugs across major drug classes including oncology, diabetes care, and asthma treatments.
The Council of Economic Advisers estimated taxpayers will save $64.3 billion over the next decade in Medicaid drug costs. Of those savings, $36.6 billion will accrue to the federal government and $27.6 billion to state governments, according to the administration. These savings will unlock capital for states to invest in other healthcare initiatives.
Medicaid programs have already benefited from the Most Favored Nation pricing agreements, with one million free prescriptions of Eliquis, a widely used drug for heart disease, made available to beneficiaries, the administration said. The administration also operates TrumpRx.gov, a platform where consumers can access direct-to-consumer discounts on medicines.
The administration said the agreements aim to end pharmaceutical companies' practice of charging American patients up to three times more than patients in other developed nations for the same drug. President Trump signed an executive order directing Most Favored Nation pricing in May 2025 and has since announced multiple agreements with pharmaceutical manufacturers.