Trump Announces All States Join Medicaid Drug Pricing Program

President Donald Trump announced on September 18, 2026, that all 50 states, along with the District of Columbia and Puerto Rico, will participate in a new program aimed at lowering Medicaid prescription drug prices by aligning them with rates paid in other wealthy nations. The initiative, called the GENEROUS model, is part of the administration's most-favored-nation pricing policy, which seeks to reduce the gap between U.S. drug prices and those in countries like Canada, Germany, and Japan. In remarks from the Oval Office, Trump was joined by governors from South Dakota, Mississippi, and Arkansas, as well as health officials. He framed the program as a significant achievement that could influence the upcoming midterm elections, stating, "This one thing alone should win us the midterms." The White House estimates that the program will save states $64.3 billion over the next decade, with broader federal savings projected at $529 billion over 10 years. The GENEROUS model involves deals with 26 major pharmaceutical companies, including Pfizer, Eli Lilly, and Novo Nordisk, which have agreed to offer lower prices comparable to those in other developed countries.