News|Articles|July 20, 2026

Medicaid MFN Pricing Could Save $8.6 Billion

Fact checked by: Brooke McCormick

Existing rebates and manufacturers' gaming risk may limit these gains.

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.