Federal Policy
CMS Finalizes GLOBE Model for Medicare Part B Drug Rebates
In a client alert, King & Spalding reports that CMS finalized the GLOBE Model on October 2, 2026, a mandatory test of international reference pricing for certain Medicare Part B drugs. The model assesses additional rebates when U.S. prices exceed those paid in economically comparable countries, using Innovation Center authority to alter how Part B drug inflation rebates are calculated. The firm notes the model will affect only a limited set of Part B drugs rather than the broader drug market. No Medicaid-specific provisions are described in the source.
Why it mattersDrug manufacturers and providers billing Medicare Part B must track which drugs fall under the mandatory rebate test, though the model as described has no direct Medicaid managed care mechanism.