CMS to Lower Drug Costs and Improve Care by Extending Deadline for GENEROUS Model Application

CMS to Lower Drug Costs and Improve Care by Extending Deadline for GENEROUS Model Application

The Centers for Medicare & Medicaid Services (CMS) is extending the application deadline for prescription drug manufacturers to apply to the GENErating cost Reductions fOr U.S. Medicaid (GENEROUS) Model-a landmark Innovation Center initiative designed to lower drug spending in Medicaid, improve quality of care and health outcomes by increasing access to critical medications, and strengthen the Medicaid program overall. The extension from March 31, 2026, to April 30, 2026, will provide interested drug manufacturers more opportunity to join the model.

"Based on feedback from drug manufacturers, CMS has decided to give interested companies additional time to apply for the GENEROUS Model," said CMS Administrator Dr. Mehmet Oz. "We are committed to partnering with states and manufacturers to drive down drug prices and ensure that the most vulnerable Americans have access to life-saving medications."

State Medicaid programs that choose to participate in the GENEROUS Model, announced in November 2025, will be able to purchase drugs included in the pilot program at prices aligned with those paid in select other countries, allowing state Medicaid programs to benefit from fairer, more competitive pricing. This will be an important tool in meeting President Trump's Executive Orderto lower drug prices for American patients.

"The GENEROUS Model aims to tackle the rising drug costs facing Americans," said CMS Innovation Center Director Abe Sutton. "Extending this deadline will allow for small and midsize manufacturers to participate and lower costs to the Medicaid program, providing more flexibility for state budgets and ensure that people who depend on Medicaid continue to access the care they need."

Next steps in the GENEROUS Model include:

• CMS will hold meetings with interested manufacturers about their potential participation in the model. Interested manufacturers that wish to schedule a meeting should contact [email protected] starting March 2 with the subject line "Small/midsize manufacturer meeting request." CMS will schedule these meetings beginning April 1, 2026.
• CMS will host a manufacturer town hall to discuss the operational and methodological details of the model in Spring 2026.

The final deadline for manufacturer participation in the GENEROUS Model remains June 30, 2026.

Additional information on the GENEROUS Model is available on the model webpage, including the Request for Applications for drug manufacturers.

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