CMS Introduces GENEROUS Model to Align Medicaid Drug Prices with International Benchmarks

The Centers for Medicare & Medicaid Services (CMS) has introduced a new model aimed at implementing Most Favored Nation (MFN) pricing within Medicaid. The initiative, referred to as the GENEROUS model, seeks to align drug prices in the United States with those of other developed nations by leveraging international pricing benchmarks. This approach is designed to address disparities in pharmaceutical costs and ensure more consistent pricing across markets.

Under the GENEROUS model, CMS plans to use data from select countries with comparable healthcare systems to establish reference prices for certain prescription drugs covered under Medicaid. The program will apply these international price points as a basis for reimbursement rates within the U.S., potentially reducing costs for both state and federal governments. CMS has outlined specific criteria for determining which drugs will be included in this pricing framework, focusing on high-cost medications that significantly impact Medicaid spending. The agency aims to implement this model while maintaining access to necessary treatments for beneficiaries and ensuring compliance with existing legal and regulatory standards.

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Date: November 12, 2025

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