The Big Story

Trump admin brings international drug pricing to Medicaid

A new payment model from the Centers for Medicare and Medicaid Services (CMS) aims to bring the Trump administration’s “Most Favored Nation” pricing deal to Medicaid, in an effort to link U.S. drug prices to lower prices abroad.

© Joseph Choi

State Medicaid programs that choose to participate in the model will be able to purchase drugs included in the pilot at prices aligned with those paid in select other countries.

The agency said the five-year pilot, which launches in 2026, is designed around "allowing Americans to benefit from fairer, more competitive pricing."

The model will allow CMS to negotiate with participating manufacturers for lower prices, while states adopting the model will implement uniform, trans

See Full Page