AHA comments to CMS on GLOBE payment model

The AHA commented today on the Centers for Medicare & Medicaid Services’ proposed rule on the Global Benchmark for Efficient Drug Pricing Model, or GLOBE, a new mandatory Medicare payment model issued in December. The model seeks to make most-favored-nation prices available for select drugs in the Medicare Part B program and lower out-of-pocket costs for certain beneficiaries selected for participation. While the AHA expressed support for the administration’s broad goal of lowering drug prices, it outlined specific concerns on the GLOBE Model, saying that it lacks critical operational details that could create additional burden for hospitals and health systems. Among recommendations, the AHA urged CMS to monitor the prices hospitals pay to acquire Medicare Part B drugs, address operational and administrative burden concerns, and establish specific protections to mitigate against any increases in white bagging — a practice where third parties require certain prescribed drugs to be dispensed from a specific specialty pharmacy and shipped directly to a practice, hospital or clinic for patient administration.