CMS Finalizes GLOBE Model Testing International Drug Rebate Benchmark

CMS finalized its Global Benchmark for Efficient Drug Pricing (GLOBE) Model on Sept. 30, a mandatory test of an alternative manufacturer rebate calculation under the Medicare Part B Inflation Rebate Program. Instead of the current domestic pricing benchmark, the model uses a benchmark derived from international pricing data. After public comment, CMS excluded biosimilars, orphan-only drugs, plasma-derived products and certain cell and gene therapies, and carved out manufacturers already participating in its GENEROUS Model, leaving only four manufacturers expected to be required to participate. The model will apply to Medicare beneficiaries in a randomly selected subset of geographic areas covering about 25% of Original Medicare beneficiaries. CMS now estimates $440 million in savings over the seven-year performance period, sharply lower than its earlier $12 billion projection.

Pharmacy · Finance