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News
The Trump administration's GLOBE drug pricing model — designed to cut hospital drug costs for Medicare patients — may now apply to as few as four drugmakers. Most major pharmaceutical companies were exempted after signing separate "most favored nation" pricing deals with the White House. The move also slashed projected Medicare savings from $11.9 billion to just $440 million.
The Trump administration's GLOBE model, a rule aimed at reducing hospital drug prices for Medicare patients, has been dramatically narrowed. After exempting companies that signed separate "most favored nation" (MFN) pricing agreements with the White House, the finalized rule may now apply to as few as four unnamed drugmakers — down from the broad industry-wide scope originally envisioned.
The exemptions cover more than two dozen major pharmaceutical companies, including giants like Pfizer, Eli Lilly, and Novo Nordisk, all of which struck individual pricing deals with the administration. The White House Council of Economic Advisers argues these broader MFN deals could still save the federal government $36.6 billion and state governments $27.6 billion over the next decade.
By the Numbers:
Why it matters: The dramatic narrowing of GLOBE raises questions about whether the administration's drug pricing strategy will deliver meaningful savings for Medicare patients, or whether broad industry exemptions have effectively defanged the rule before it even takes effect.
