Savings Under Most-Favored-Nation Pricing for Prescription Drugs in Medicaid.

Medicaid could save billions by adopting Most-Favored-Nation pricing, with potential reductions exceeding current rebates for prescription drugs.

• Why it matters: Reducing drug costs in Medicaid is crucial for improving healthcare affordability and access, yet current rebate systems may not fully leverage international price comparisons.
• What they did: The study analyzed existing Medicaid rebates against international reference prices and modeled savings using the Generating Cost Reductions for US Medicaid payment approach.
• The result: Findings suggest substantial savings are achievable, highlighting the potential for policy changes to lower prescription drug costs and enhance Medicaid sustainability.