CMS Finalizes New Mandatory Drug Payment Model

The Centers for Medicare & Medicaid Services released a final rule to address the increasingly expensive cost of drugs in Original Medicare Part B while preserving or enhancing Medicare beneficiaries’ quality of care.  

The Global Benchmark for Efficient Drug Pricing Model is designed to test whether a new rebate formula for certain drugs in the Medicare Part B Drug Inflation Rebate Program will reduce costs for original Medicare beneficiaries while preserving quality of care. The GLOBE Model will use an alternative method for calculating Medicare Part B drug inflation rebate amounts that will reduce out-of-pocket cost to patients. The GLOBE Model will begin Jan. 1, 2027, and end March 31, 2032.