CMMI to launch model to lower Medicaid drug spending

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 by the CMS. States will be able to enroll on a rolling basis through Aug. 31.

Dive Insight:

Under the Generating Cost Reductions for U.S. Medicaid, or Generous, model, drug companies who apply for and are accepted will enter neg