CMS Finalizes Narrowed GLOBE Model for Medicare Part B Drug Pricing, Projecting Reduced Savings
The Centers for Medicare & Medicaid Services (CMS) has finalized the Global Benchmark for Efficient Drug Pricing (GLOBE) Model, a new payment model designed to lower prescription drug costs under Medicare Part B. This model targets certain drugs administered in clinical settings, such as those for cancer or autoimmune conditions, by requiring manufacturers to provide rebates if their prices exceed those in economically comparable countries. The GLOBE Model, which will launch on January 1, 2027, and run for five years, is significantly narrower in scope than initially proposed. Exclusions from the model now include orphan-only drugs, biosimilars and their reference biologics once biosimilar competition enters the U.S. market, Inflation Reduction Act drug price negotiation-eligible drugs, plasma-derived products, and certain cell and gene therapies. These expanded exclusions have drastically reduced the projected savings from $11.9 billion in the proposed rule to an estimated $440 million over five years in ...
