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Trump Announces 50 States Join Medicaid Drug Pricing Plan

By Drooid · Sep 18, 2026, 10:58 PM UTC · How we work

Center

Unverifiable $64B Savings

U.S. President Donald Trump announced on September 18, 2026 that all 50 states will join a Medicaid most-favored-nation drug-pricing program.
The GENEROUS model is a voluntary pilot requiring state and drug-maker sign-ups, yet the administration disclosed no agreement details, preventing independent verification of the projected $64 billion savings.
States had to apply by September 10; Massachusetts signed up while California awaited more details.

Right

Tariff Leverage Secures

U.S. President Donald Trump announced on September 18, 2026 that Medicaid programs in 50 states, Washington D.C., and Puerto Rico will receive lower negotiated drug prices.
Republican governors praised the deal, saying it will improve outcomes and help the administration’s 2026 midterm prospects.
The administration secured most-favored-nation agreements with 26 drugmakers, leveraging the threat of tariffs.
HHS Secretary Robert F. Kennedy Jr. said $64 billion savings will end a ‘feedback loop’ for states.

History

Historical Context

President George W. Bush signed the 2003 Medicare Modernization Act, which barred Medicare from negotiating drug prices. The 2022 Inflation Reduction Act lifted that ban, enabling negotiations beginning in 2026. On September 18 2026, President Trump announced a state-led program that secured 26 drug-maker agreements promising up to $64 billion in savings, a move praised by Governor Maura Healey and HHS Secretary Robert F. Kennedy Jr.

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Unverifiable $64B Savings

U.S. President Donald Trump announced on September 18, 2026 that all 50 states will join a Medicaid most-favored-nation drug-pricing program.
The GENEROUS model is a voluntary pilot requiring state and drug-maker sign-ups, yet the administration disclosed no agreement details, preventing independent verification of the projected $64 billion savings.
States had to apply by September 10; Massachusetts signed up while California awaited more details.

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