# CMS Finalizes GLOBE Drug Payment Model

The Centers for Medicare & Medicaid Services (CMS) finalized the five-year GLOBE Model, effective January 1, 2027, to test an international benchmark-based formula for Part B drug inflation rebates in selected geographic areas covering approximately 25% of Original Medicare beneficiaries. The federal payment-policy change is not a contract award or solicitation, but it may affect pharmaceutical manufacturers and contractors supporting manufacturer invoicing, Medicare provider billing, and health-plan operations. Manufacturer invoicing and reconciliation will continue through March 31, 2034, and affected beneficiaries may begin seeing lower out-of-pocket costs on April 1, 2027.

- Companies supporting pharmaceutical manufacturers, Medicare providers, or health-plan operations should assess potential effects on rebate calculations, billing workflows, and beneficiary cost processes.
- The model begins January 1, 2027, and applies in selected geographic areas; the signal does not identify those areas.
- Manufacturer invoicing and reconciliation continue through March 31, 2034, providing a long implementation horizon for affected operational support.

**Jurisdictions:** federal
**Industries:** Healthcare
**Topics:** Policy
**Published:** October 01, 2026

### Government Entities
- Centers for Medicare & Medicaid Services (CMS)
- U.S. Department of Health and Human Services (HHS)
- Office of the Assistant Secretary for Planning and Evaluation (ASPE)

### Key Quotes
> At CMS, we’re focused on more than promises to make healthcare more affordable — we’re taking action to pilot a new approach to lower costs and strengthen the quality of care while preserving medical innovation.
> — Dr. Mehmet Oz, CMS Administrator

### Sources
- [CMS Finalizes New Mandatory Drug Payment Model to Deliver Lower Drug Prices for Beneficiaries in Original Medicare Part B | CMS](https://www.cms.gov/newsroom/press-releases/cms-finalizes-new-mandatory-drug-payment-model-deliver-lower-drug-prices-beneficiaries-original) - CMS