The Centers for Medicare & Medicaid Services (CMS) has proposed a new drug payment model aimed at reducing the cost of medications for Medicare Part D beneficiaries. The initiative, known as the Guarding U.S. Medicare Against Rising Drug Costs (GUARD) Model, seeks to address the high prices of drugs while maintaining or improving the quality of care for beneficiaries.
Health and Human Services Secretary Robert F. Kennedy, Jr. emphasized the importance of affordable healthcare, stating, "As HHS Secretary, I am focused on making health care affordable – starting with the price Americans pay for prescription drugs." He noted that President Trump had called for a comprehensive response to bridge the gap between U.S. drug prices and those in other countries.
CMS Administrator Dr. Mehmet Oz highlighted the financial challenges faced by seniors reliant on Medicare Part D drugs: "Seniors who rely on Medicare Part D drugs should never have to choose between filling their prescriptions and filling their grocery carts or gas tanks." The GUARD Model aims to tackle this issue by addressing what is described as a broken pricing system.
According to CMS Innovation Center Director Abe Sutton, "GUARD is an innovative solution designed to bring Americans the drugs they need at prices they can better afford." The model will test a new rebate formula that includes international drug pricing information to establish benchmarks based on costs in economically similar countries.
The GUARD Model is set to begin on January 1, 2027, and will run for five years. It will cover 25% of Part D enrollees in randomly selected geographic areas across the United States. More details about the GUARD Model can be found on [CMS's website](https://www.cms.gov/priorities/innovation/innovation-models/guard), and further information is available in the [Federal Register](https://www.federalregister.gov/d/2025-23705).
