October 9, 2026
The Centers for Medicare & Medicaid Services (CMS) has finalized the Global Benchmark for Efficient Drug Pricing (GLOBE) Model, a mandatory drug payment model intended to reduce costs for Medicare and beneficiaries receiving certain separately payable drugs under Original Medicare Part B. CMS announced the final rule on September 30.
GLOBE will use drug prices in economically comparable countries to calculate manufacturer rebates and reduce beneficiary coinsurance for selected drugs. The model focuses on medications typically administered in clinical settings, including certain treatments for cancer, autoimmune conditions, and arthritis. It does not apply to all prescription drugs or medications covered under Medicare Part D.
The model will apply to beneficiaries living in randomly selected geographic areas encompassing approximately 25% of beneficiaries with Original Medicare as their primary coverage. Participation is mandatory for manufacturers whose drugs meet the model’s eligibility criteria and are not otherwise excluded.
GLOBE will launch January 1, 2027, and run through March 31, 2032. Affected beneficiaries may begin seeing reduced out-of-pocket costs on April 1, 2027. CMS will test whether the new approach lowers spending while preserving or improving the quality of care.
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