The rule targets PBMs, but rebate, price protection and formulary deals they strike with drugmakers will be disclosed to plan fiduciaries and open to audit.
News|Articles|September 21, 2026
FAQ: How the GENEROUS Model Applies MFN Pricing to Medicaid
Author(s)Stephen Appezzato
CMS says 40 states and Puerto Rico have signed on to the GENEROUS Model, which applies MFN pricing to Medicaid drugs through state-invoiced rebates.
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The Centers for Medicare & Medicaid Services (CMS) announced Sept. 18 that all 50 states, the District of Columbia and Puerto Rico have applied to join the GENErating cost Reductions fOr US Medicaid (GENEROUS) Model, which provides most favored nation (MFN) pricing on certain prescription drugs to Medicaid programs.¹ Forty states and Puerto Rico have signed agreements, and the remaining states have until Sept. 30 to follow. Below are answers to the key questions about the GENEROUS Model.
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