Medicaid Monitor
Policy Intelligence
Medicaid Monitor
Policy Intelligence
Updated 12:08 PM MT
© 2026 Lanphier Ventures, LLC
Informational use only. Not legal or compliance advice.
← All stories
Federal Policy·September 18, 2026

CMS Launches Medicaid Drug Payment Model with Participating States

CMS announced participating states in a new Medicaid drug payment model aimed at reducing prescription drug costs for Medicaid beneficiaries. The model will test alternative reimbursement methodologies for prescription drugs in Medicaid programs. Participating states will implement the model beginning in 2027, with CMS providing technical assistance and evaluating outcomes over a multi-year period. The initiative targets cost reduction while maintaining access to necessary medications for Medicaid enrollees.

Why it matters

States and managed care plans will need to adapt pharmacy benefit structures and contracting arrangements to align with new federal reimbursement methodologies and reporting requirements.

Pharmacy · Managed Care · Finance

Read the full article at cms.gov

Share this briefing

You might also like

← All stories

Get the daily briefing.