Washington: The US government has announced new pilot programmes aimed at reducing out-of-pocket drug costs for older and disabled Americans enrolled in Medicare, bringing prices closer to those paid in economically comparable countries.
The Centres for Medicare and Medicaid Services (CMS) said the initiatives, titled Guarding US Medicare Against Rising Drug Costs (GUARD) and Global Benchmark for Efficient Drug Pricing (GLOBE), will assess manufacturer rebates when drug prices under Medicare exceed those charged in similar international markets.
Under the GLOBE model, CMS will use global pricing data to calculate manufacturer rebates and determine patient out-of-pocket costs for select drugs covered under Medicare Part B. These include treatments for cancer, autoimmune diseases, eye disorders, and hormonal conditions. The GLOBE programme is set to launch on October 1, 2026, and will run through 2031.
President Trump announces MOST FAVORED NATIONS DRUG PRICING 🇺🇸
“This represents the greatest victory for patient affordability in the history of American health care, by far.” pic.twitter.com/yGYNMrCFEW
— The White House (@WhiteHouse) December 19, 2025
The GUARD model will apply international price benchmarks to certain prescription drugs covered under Medicare Part D. It will determine both manufacturer rebates and patient cost-sharing amounts. GUARD is scheduled to begin on January 1, 2027, and continue through December 31, 2031.
Medicare Part D provides prescription drug coverage for outpatient medications through private plans approved by Medicare. Out-of-pocket costs under the programme include co-payments, flat fees, and coinsurance, which is calculated as a percentage of a drug’s price.
CMS said the pilot programmes are designed to test whether aligning US drug prices with those paid globally can help lower costs for Medicare beneficiaries while maintaining access to essential medications.
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