Trump Medicare drug pricing model may apply to only four companies after exemptions
XLV•A finalized rule may leave only four drugmakers in the Medicare GLOBE price-setting model after exempting companies with separate White House pricing agreements. HHS cut its projected Medicare Part B savings to about $440 million from roughly $11.9 billion.
1. Exemptions narrow participation
The finalized rule says Medicare’s regulator plans to waive GLOBE participation requirements for manufacturers that signed separate most-favored-nation pricing agreements with the White House. A footnote says the model could then apply to just four manufacturers, without naming them.
2. Savings estimate reduced
HHS now estimates the program will reduce Medicare Part B spending by about $440 million over the model period, down from roughly $11.9 billion in the proposed rule. HHS did not respond to questions about what drove the reduction.
