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STAT+: Trump touts pharma deals to offer cheaper drugs to state Medicaid programs
Confirmed
In Short: President Trump touted deals with pharmaceutical companies to offer cheaper drugs to state Medicaid programs, part of his plan to lower drug costs.
President Trump announced Friday that more than two dozen pharmaceutical companies have agreed to sell drugs to state Medicaid programs at prices available in peer countries under a new model called GENEROUS.
The GENEROUS model aims to provide lower drug prices to Medicaid programs across all 50 states, Washington, D.C., and Puerto Rico.
According to Trump, these deals are a major component of his initiative to reduce drug prices and have become a key part of his messaging on affordability.
The announcement comes as the Trump administration faces criticism over a new public charge rule that could affect immigrants using Medicaid and other public assistance programs.
The rule, set to take effect on September 18, has prompted concerns among immigrant communities and advocacy groups.
What's confirmed
- President Trump announced Friday that more than two dozen pharmaceutical companies have agreed to sell drugs to state Medicaid programs at prices available in peer countries under a new model called GENEROUS.
- The GENEROUS model aims to provide lower drug prices to Medicaid programs across all 50 states, Washington, D.C., and Puerto Rico.
- According to Trump, these deals are a major component of his initiative to reduce drug prices and have become a key part of his messaging on affordability.
- The announcement comes as the Trump administration faces criticism over a new public charge rule that could affect immigrants using Medicaid and other public assistance programs.
- The rule, set to take effect on September 18, has prompted concerns among immigrant communities and advocacy groups.
What's still developing
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- The 2025 reconciliation law, once called the “One Big Beautiful Bill,” signed by President Trump on July 4, 2025, requires 44 states (including DC) to condition Medicaid eligibility for adults in the Affordable Care Act (ACA) Medicaid expansion group and certain enrollees in 1115 waiver programs on meeting work requirements starting January 1, 2027.
- To implement Medicaid work requirements, states will need to make important policy and operational decisions, implement needed system upgrades or changes, develop new outreach and education strategies, and hire and train staff, all within a relatively short timeframe.
- KFF’s policy research provides facts and analysis on a wide range of policy issues and public programs.
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- Currently, 41 states (including DC) have expanded their Medicaid programs under the ACA to nearly all adults with income up to 138% FPL ($21,597 for an individual in 2025).
- In June 2026, CMS released a list of states with 1115 waiver programs that include individuals who will be subject to work requirements.