Medicaid MFN Pricing Could Save $8.6 Billion

Extending most-favored-nation (MFN) drug pricing to Medicaid could save the program $8.6 billion a year, which is the equivalent of more than a third of current net drug spending, according to a new research letter published in JAMA.¹ The findings offer one of the first independent estimates of how much states stand to gain from CMS’s new Generating Cost Reductions for US Medicaid (GENEROUS) payment model, a voluntary pilot that ties Medicaid drug rebates to prices paid in other developed countries.