CMS has proposed two new drug pricing models designed to reduce Medicare spending by linking U.S. payments to international pricing benchmarks. Announced by the CMS Innovation Center, the proposals—GUARD and GLOBE—aim to improve affordability for beneficiaries while supporting the long-term sustainability of the Medicare program. Key elements of the proposal include:
- Two distinct models, with GUARD applying to Medicare Part D prescription drugs and GLOBE targeting Medicare Part B drugs such as physician-administered injectables
- The use of international reference pricing, which would benchmark Medicare payments against prices in economically comparable countries
- A focus on improving affordability and access by reducing out-of-pocket costs and supporting better medication adherence
- An open public comment period, allowing stakeholders to provide feedback through the Federal Register before the models are finalized.