All US states join Trump administration’s Medicaid drug pricing programme

WASHINGTON: (News Desk) – All 50 US states have joined a Trump administration programme aimed at lowering the prices of certain prescription medicines purchased through Medicaid, with the District of Columbia and Puerto Rico also participating. The initiative seeks to align Medicaid drug prices with the lowest prices paid by comparable developed countries.

The White House said 26 pharmaceutical manufacturers have reached agreements under the programme, covering a broad range of branded medicines. The administration estimates that the initiative could generate about $64.3 billion in savings over the next decade, including $36.6 billion for the federal government and $27.6 billion for state governments.

The programme, known as GENEROUS, operates through a most-favoured-nation pricing model under which participating drugmakers provide rebates to state Medicaid programmes so that the final prices do not exceed comparable prices in other developed countries.

Trump said the initiative would save states billions of dollars each year and allow them to redirect some of those savings towards healthcare services.

The programme is particularly significant for Medicaid, a jointly funded federal and state healthcare programme serving millions of low-income Americans, although Medicaid beneficiaries already generally pay relatively small amounts for prescription medicines.

The administration has expanded the initiative after all states applied to participate. The White House says the agreements cover hundreds of medicines across major therapeutic categories, including treatments for cancer, diabetes and asthma.

However, the programme has faced questions over transparency. Reuters reported that details of individual agreements and the specific medicines receiving discounts have not been fully disclosed, while industry critics have raised concerns about the potential effects of the pricing arrangements on access to medicines and pharmaceutical investment.

Trump has also linked the broader healthcare cost issue to the upcoming US midterm elections, saying the savings from the programme could help states improve healthcare services.