Medicaid managed care: An Explainer

A paper by Mark Shepard and Jacob Wallace (2026) has a great overview of the Medicaid managed care program. The first question one may have is, how does Medicaid managed care differ from other forms of government procurement. “In standard public procurement—such as contracting for infrastructure projects—the government specifies desired services, solicits bids, selects winners,…

Most Favored Nation Drug Pricing in the U.S.: Comparing GENEROUS, GLOBE and GUARD

The Trump administration has introduced three most-favored-nation (MFN) drug pricing initiatives designed to link U.S. pharmaceutical costs to prices paid in economically comparable countries. Most-favored-nation pricing requires manufacturers to provide rebates when U.S. prices exceed those in reference nations—a direct response to the persistent gap between U.S. drug prices and those in other developed economies.…

What are rural emergency hospitals?

Rural Emergency Hospitals (REHs) are a new Medicare provider type created to preserve essential emergency and outpatient access in rural communities where low inpatient volume makes full-service hospitals financially unsustainable. They receive enhanced outpatient payments and a fixed monthly facility payment in exchange for forgoing acute inpatient care.​ CMS has an REH fact sheet that…

How do CMS negotiated prices compare to value?

That is the question asked in a recent Health Affairs Forefront article by Peter Neumann, Josh Cohen, Sean Sullivan and Feng Xie. They compare the CMS negotiated prices for Initial Price Applicability Year (IPAY) 2027 against value-based prices (using QALYs) from the Tufts Cost-Effectiveness Analysis (CEA) Registry. The authors found that cost-effectiveness estimates varied among…

Medicare Drug Price Negotiation Results: 2027

Today, the Centers for Medicare and Medicaid Services (CMS) released the results from the Medicare Drug Price Negotiation Program for Initial Price Applicability Year (IPAY) 2027 (press release). What was the average reduction in drug prices? Across the 15 drugs included in the 2027 negotiation, on average, drug prices fell by 62% (median: 63%); accounting…