Story perspectives

Trump's GENEROUS Program Aims to Slash Drug Costs

11/7/2025

Summary

Story summary

U.S. President Donald Trump announced a pilot program called GENEROUS to lower prescription drug costs for Medicaid, starting January 2026.
Trump's GENEROUS program would allow participating states to purchase select drugs at most-favored-nation rates, saving billions for low-income Americans.
Private insurers would access prices about 25% below current market rates.
Medicaid spending exceeded $100 billion in 2024, and the plan expands Medicare eligibility for obesity treatments, with a $50 copay.

History

Historical Context

The Medicare Prescription Drug, Improvement, and Modernization Act was enacted on December 8, 2003, establishing Medicare Part D, which provided a prescription drug benefit for seniors. This legislation aimed to address rising medication costs, projected to cost $400 billion over ten years. Subsequent reforms, including the Inflation Reduction Act of 2022, reflect ongoing efforts to enhance healthcare affordability in the U.S.

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Story summary

U.S. President Donald Trump announced a pilot program called GENEROUS to lower prescription drug costs for Medicaid, starting January 2026.
Trump's GENEROUS program would allow participating states to purchase select drugs at most-favored-nation rates, saving billions for low-income Americans.
Private insurers would access prices about 25% below current market rates.
Medicaid spending exceeded $100 billion in 2024, and the plan expands Medicare eligibility for obesity treatments, with a $50 copay.

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