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Trump's GLOBE Model Aims to Cut Medicare Drug Costs

12/23/2025

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Story summary
  • The Trump administration proposed the Global Benchmark for Efficient Drug Pricing (GLOBE) model to reduce Medicare Part B drug costs and align U.S. prices with those in comparable countries, with a start date of October 1, 2026 and a five-year run if approved.
  • CMS Administrator Dr. Mehmet Oz emphasized that the model would lower costs while maintaining care quality.
  • Experts noted potential financial benefits for seniors but raised concerns about the impact on drug innovation if prices are excessively reduced.
  • Final Congressional approval is still pending.