Summary
The Trump administration proposed a plan to reduce Medicare drug costs by changing how they are priced and paid for. Known as the Global Benchmark for Efficient Drug Pricing (GLOBE), this model aims to tie U.S. drug prices to those in other countries, potentially saving money for both patients and the government.
Key Facts
- The proposed GLOBE model would change the pricing and rebate system for certain Medicare Part B drugs.
- The plan would compare U.S. drug prices to those in other developed countries to determine fair costs.
- If approved, the GLOBE Model is set to operate from October 1, 2026, to September 30, 2031.
- Medicare Part B drug spending has grown more than spending in other areas of Medicare.
- The proposal follows previous price cuts for 15 prescription drugs, saving an estimated $12 billion.
- Biosimilars, which are similar to generic drugs, would not be included in the GLOBE Model once available in the U.S.
- The aim is to make medical treatments more affordable without reducing the quality of care.
- Americans currently pay about three times more for the same medications than people in other developed countries.
