CMS to launch model to lower Medicaid drug spending

BioPharma Dive November 7, 2025
Emily Olsen

Under the model, set to start next year, the CMS will negotiate lower prices for Medicaid programs linked to those paid in select other countries with participating pharmaceutical manufacturers.

Dive Brief:

• The CMS’ Innovation Center is launching a new payment model that aims to lower drug spending in Medicaid, the agency said Thursday.
• Under the voluntary model, which will run for five years starting in January, the CMS will negotiate lower prices linked to those paid in select other countries with participating pharmaceutical companies.
• The agency is now seeking applications from manufacturers interested in participating in the model, as well as letters of intent from states that may want to opt into the pricing and terms eventually negotiated...

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