Most Favored Nation: Future Implications for Medicaid Rebates

IPD Analytics has released a new report, “Most Favored Nation: Future Implications for Medicaid Rebates,” outlining the expanding number of manufacturers entering agreements to offer most favored nation (MFN) pricing to state Medicaid programs, signaling a meaningful shift in U.S. drug pricing strategy. MFN pricing aligns U.S. drug costs with those in other high-income countries, and as of November 6, 2025, major manufacturers including Pfizer, AstraZeneca, EMD Serono, Novo Nordisk, and Eli Lilly have committed to providing MFN pricing under recently issued federal directives. Centers for Medicare & Medicaid Services (CMS) plans to implement MFN as an additional supplemental rebate through the voluntary GENEROUS Model, a move expected to affect Medicaid drug rebates, preferred drug list (PDL) placement, and broader brand strategies. As these changes evolve, it is increasingly important for Medicaid programs and manufacturers to prepare for potential cost and access implications in 2026 and beyond.