Small GLOBE, big precedent: a Perspective

The Trump administration’s GLOBE model has shriveled, and in the process, the threat it poses to biomedical innovation has become clearer.

A mandatory scheme for regulating prices in Medicare Part B, the Global Benchmark for Efficient Drug Pricing model was originally slated to suck $11.9 billion out of the biopharmaceutical industry over seven years. That money was never the real problem. Now that a hodgepodge of deals and exemptions has pared that figure to $440 million, the critical issue is clear: the precedent GLOBE sets for imposing international reference pricing and for using CMS’s demonstration authority to mandate sweeping policies...