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Global Benchmark for Efficient Drug Pricing (GLOBE) Model
Plain English Summary
A new rule has been introduced that affects Medicare payments for certain drugs. This rule, called the GLOBE Model, will test a different way to calculate rebates for specific Medicare Part B drugs. The goal is to see if this new method can lower costs for Medicare beneficiaries while still maintaining high-quality care. Insurance agents should stay informed about these changes as they may impact how they advise clients on Medicare drug coverage.
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This final rule implements the Global Benchmark for Efficient Drug Pricing Model (GLOBE Model), a new mandatory Medicare payment model under section 1115A of the Social Security Act. The GLOBE Model will test whether a payment model that uses an alternative method for calculating Medicare Part B drug inflation rebate amounts for certain separately payable Medicare Part B drugs and biological products reduces costs for Original Medicare (OM) beneficiaries and the Medicare program while preserving quality of care. The term OM has the same meaning as Medicare fee-for-service and the traditional Medicare program.