Trump administration finalizes watered-down Medicare drug pricing rule covering four companies
The Trump administration published a final rule in Washington that limits its new Medicare drug pricing pilots to only four specific companies.
Scope of the new pilot program
The Global Benchmark for Efficient Drug Pricing, known as GLOBE, is one of two mandatory pilot programs under the administration's plan. The final rule applies this model to only four companies, whereas the initial proposal included many more drugs. Companies that struck voluntary deals with the administration are exempt from the GLOBE pilot according to the final text.
Estimated savings drop significantly
Medicare actuaries estimate the model's projected savings have fallen from nearly $12 billion in the proposal to $440 million now. The rule also excludes drugs for rare diseases, though those treating both rare and common conditions will not receive that exclusion.
Second pilot remains proposed
The other pilot program called GUARD is still in the proposed stage and has not yet been finalized. This policy generally refers to most-favored nation pricing, aiming to lower prices to levels charged in other rich countries.
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