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Medicare Drug Prices to Mirror Global Costs
20 Dec
Summary
- Pilot programs will begin in 2026 and 2027.
- New programs aim to lower drug costs for Medicare recipients.
- Rebates will be assessed if prices exceed those in comparable nations.
The U.S. government has announced new pilot programs designed to significantly lower prescription drug expenses for Medicare recipients. These initiatives are set to commence in 2026 and 2027, with the goal of aligning out-of-pocket drug costs with those paid in economically comparable nations. The programs will assess rebates for certain drugs if their prices exceed international benchmarks.
The Centers for Medicare and Medicaid Services (CMS) will implement two distinct models. The GLOBE model, launching October 1, 2025, and running through 2031, will focus on Medicare Part B drugs, including treatments for cancer and autoimmune diseases. It will use global price data to set manufacturer rebates and patient costs.
Complementing GLOBE, the GUARD model will target Medicare Part D prescription drugs. Scheduled to begin January 1, 2027, and conclude on December 31, 2031, this program will also leverage international price benchmarks to determine manufacturer rebates and patient out-of-pocket expenses.
