The U.S. government on Thursday announced a new program aimed at lowering prescription drug costs for Medicaid patients by linking prices to those paid in other countries.

The Centers for Medicare and Medicaid Services said the program, called the GENEROUS Model, will allow states to buy certain medications at prices similar to those in select other countries. The program is set to begin in 2026.

"Drug prices in the U.S. remain far too high," said Abe Sutton, director of the CMS Innovation Center. The program aims to ensure Medicaid pays prices on par with other developed nations, he said.