Medicaid Could Save $$ Under 'Most Favored Nation' Pricing, Study Finds

— 47 states and DC could save as much as $8.6 billion, researchers say

July 16, 2026

• 3 min read

A study showed that a new Medicaid drug pricing model based on other countries' drug prices could save Medicaid money.For 47 states and Washington, D.C., savings could total $8.6 billion.Congress will have to ensure that drugmakers don't try to "game" the system in the new model.

A new program to base Medicaid drug prices on the lowest drug prices in other countries -- known as "most favored nation" (MFN) pricing -- could result in substantial savings, researchers found.