The U.S. government on Thursday unveiled a new program to cut prescription drug costs for Medicaid patients by tying prices to those paid in other countries.

The program, called the Generous Model, will launch in 2026 and allow participating state Medicaid programs to purchase drugs at internationally aligned prices, the Centers for Medicare and Medicaid Services (CMS) said. The program is voluntary for both states and drug manufacturers.

States that choose to participate will be able to buy certain medications at prices similar to those paid in select other countries. CMS will negotiate directly with drugmakers, aiming to bring down costs, while ensuring patients still have access to essential treatments.

Medicaid is a public health insurance program, which provides coverage to low-inc

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