Healthcare Innovation December 21, 2025
The proposed models intend to test a payment model that modifies the inflation rebate using international drug pricing information
Key Highlights
- The GUARD Model targets Medicare Part D outpatient drugs, adjusting rebates based on prices in comparable countries, starting January 2027.
- The GLOBE Model applies to certain Medicare Part B drugs, using international data to modify rebate calculations, operating from October 2026.
- Both models will run for five years, covering about 25 percent of Medicare beneficiaries in selected geographic areas.
- CMS aims to reduce U.S. drug spending, which is significantly higher than in other developed nations, by implementing these global benchmarking approaches.
- The initiative responds to calls for fairer drug pricing, seeking to protect innovation while controlling costs for...
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