CMS Finalizes International Reference Pricing Model for Part B Drugs
CMS finalized the GLOBE Model, a mandatory payment model tying Medicare Part B drug inflation rebates to prices paid in 19 reference countries, per a Sept. 30 CMS news release. The regulation takes effect Nov. 30, with voluntary manufacturer data submission beginning Jan. 1, 2027, a five-year performance period from April 2027 through March 2032, and a seven-year payment period running through March 2034. The final model is narrower than proposed, excluding orphan-only drugs, biosimilars, plasma-derived products and certain cell and gene therapies, cutting projected Medicare Part B savings from $8.4 billion to $440 million over the payment period. GLOBE applies to a random sample of ZIP code areas covering about 25% of Original Medicare Part B beneficiaries and follows the Medicaid-focused GENEROUS model, under which 40 states and Puerto Rico have already agreed to similar international benchmarking for Medicaid drug pricing.
State Medicaid agencies and manufacturers should track GLOBE's design and savings methodology closely since CMS is applying the same international-reference-pricing approach to Medicaid drug costs through the companion GENEROUS model already adopted by 40 states.
Pharmacy · Finance
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