CMS finalizes mandatory GLOBE model tying Medicare Part B drug rebates to international prices

The Centers for Medicare & Medicaid Services (CMS) has finalized the Global Benchmark for Efficient Drug Pricing (GLOBE) Model, a mandatory test of an alternative rebate formula for certain drugs covered under Original Medicare Part B, as part of the Trump administration's broader push to reduce US drug costs.

This model changes how Medicare Part B drug inflation rebates are calculated for selected separately payable drugs and biological products typically administered by clinicians, using international pricing data from a set of economically comparable countries to establish a benchmark.