CMS releases proposed rules on two drug pricing models

The Centers for Medicare & Medicaid Services Dec. 19 issued two proposed rules for implementing alternative drug pricing models. 

The first proposed rule would implement a new Medicare payment model called the Global Benchmark for Efficient Drug Pricing Model, also known as the GLOBE Model. The GLOBE Model would test an alternative calculation for manufacturer rebates under the Medicare Part B Inflation Rebate Program that uses a benchmark derived from international pricing information instead of the current domestic benchmark. The benchmark would be based on either manufacturer-reported international pricing information or available information to CMS for economically similar countries. 

The second proposed rule would implement the Guarding U.S. Medicare Against Rising Drug Costs Model, also called the GUARD Model. The proposed rule would test an alternative payment method for calculating inflation rebates for certain Part D drugs and biological products. The proposed GUARD Model would test whether changing the calculation of the Part D inflation rebate would reduce costs for the Medicare program while preserving or enhancing quality of care for Part D enrollees. 

CMS will accept comments on the proposed rules for 60 days after publication in the Federal Register on Dec. 23.