Healthcare Innovation November 6, 2025
The new drug payment initiative is designed to negotiate fairer prices for Medicaid
On Thursday, November 6, the Centers for Medicare & Medicaid Services (CMS) announced a new drug payment model aimed at strengthening Medicaid. The new model, called the GENEROUS (GENErating cost Reductions for U.S. Medicaid) Model, is expected to lead to reasonable drug prices for Medicaid through negotiations between CMS and drug manufacturers.
Under the GENEROUS Model, manufacturers will provide supplemental rebates to participating states for drugs included in the model, aligning Medicaid net prices with those paid by certain other countries, as explained by CMS. This would allow Americans to benefit from fairer and competitive...
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