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CMS Launches Drug Pricing Pilot to Cut Costs

11/7/2025

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Summary

Story summary

The Centers for Medicare and Medicaid Services (CMS) will launch a five-year Most Favored Nation pricing pilot for Medicaid in 2026, tying U.S. prices to lower foreign prices.
States may opt into the program, enabling CMS to negotiate lower prices with drug manufacturers.
The initiative follows agreements with Pfizer and AstraZeneca to reduce drug costs.
All 50 states have applied for a $50 billion fund to transform rural health care.

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Story summary

The Centers for Medicare and Medicaid Services (CMS) will launch a five-year Most Favored Nation pricing pilot for Medicaid in 2026, tying U.S. prices to lower foreign prices.
States may opt into the program, enabling CMS to negotiate lower prices with drug manufacturers.
The initiative follows agreements with Pfizer and AstraZeneca to reduce drug costs.
All 50 states have applied for a $50 billion fund to transform rural health care.