The Centers for Medicare & Medicaid Services (CMS) has proposed a new drug payment model aimed at reducing the cost of medications for Medicare Part B beneficiaries. This initiative, called the Global Benchmark for Efficient Drug Pricing (GLOBE), seeks to address the high prices of drugs while maintaining or improving the quality of care for patients.
Health and Human Services Secretary Robert F. Kennedy, Jr. emphasized the importance of affordable healthcare, particularly concerning prescription drug prices. He said, "As HHS Secretary, I am focused on making health care affordable – starting with the price Americans pay for prescription drugs." The proposal is part of a broader effort initiated by President Trump to align U.S. drug prices with those in other developed countries.
CMS Administrator Dr. Mehmet Oz highlighted that Americans pay significantly more than their counterparts in other nations for identical medications. He remarked, "For too long, the patients who use Medicare Part B and the taxpayers who fund it have been paying far more than people from comparable countries for the exact same drugs." The GLOBE Model aims to lower costs without hindering medical innovation.
According to data from the HHS Office of the Assistant Secretary for Planning and Evaluation, spending on Medicare Part B drugs was nearly four times higher than across all payers between 2008 and 2021. CMS Innovation Center Director Abe Sutton noted that high costs force some older Americans to choose between essential medications and daily expenses.
The GLOBE Model will test a new rebate formula using international pricing benchmarks to reduce expenditures while preserving care quality. It excludes biosimilars once they enter the U.S. market and will operate from October 1, 2026, to September 30, 2031, covering about 25% of Medicare beneficiaries in a defined geographic area.
For further details on this proposal, visit CMS's page on innovation models at https://www.cms.gov/priorities/innovation/innovation-models/globe or view the proposed rule at https://www.federalregister.gov/d/2025-23702.
