Final Rule: GLOBE Model
Article Publication Date
Summary
The Global Benchmark for Efficient Drug Pricing (GLOBE) Model is a mandatory model that will assess rebates for certain drugs payable under Original Medicare Part B if prices exceed those paid in economically comparable countries.
This model focuses on drugs administered in a clinical setting and will include select drugs from the oncology, rheumatology, immunology, ophthalmology, and endocrinology therapeutic classes (with certain exceptions) where annual Original Medicare spending exceeds $100 million. CMS expects GLOBE to reduce out-of-pocket drug costs for people with Medicare and save Medicare money while preserving or improving beneficiaries’ quality of care.
The GLOBE Model will launch on January 1, 2027, and run through March 31, 2032, with rebate invoicing and reconciliation continuing into 2034. Reduced coinsurance amounts for GLOBE Model drugs are in effect from April 1, 2027, to March 31, 2032.
This model focuses on drugs administered in a clinical setting and will include select drugs from the oncology, rheumatology, immunology, ophthalmology, and endocrinology therapeutic classes (with certain exceptions) where annual Original Medicare spending exceeds $100 million. CMS expects GLOBE to reduce out-of-pocket drug costs for people with Medicare and save Medicare money while preserving or improving beneficiaries’ quality of care.
The GLOBE Model will launch on January 1, 2027, and run through March 31, 2032, with rebate invoicing and reconciliation continuing into 2034. Reduced coinsurance amounts for GLOBE Model drugs are in effect from April 1, 2027, to March 31, 2032.