On December 19, 2025, the U.S. Centers for Medicare & Medicaid Services (CMS) unveiled two new pilot programs aimed at reducing the out-of-pocket prescription drug costs for Medicare beneficiaries. These initiatives, known as GLOBE (Global Benchmark for Efficient Drug Pricing) and GUARD (Guarding U.S. Medicare Against Rising Drug Costs), are designed to provide significant relief to older and disabled Americans who often face high treatment costs for serious health conditions such as cancer and autoimmune diseases.
The GLOBE initiative will focus on Medicare Part B drugs, which include treatments administered in clinical settings, such as chemotherapy and biologics. Under GLOBE, CMS will compare the prices of these drugs in the U.S. with those in other developed countries that have similar healthcare systems. If the prices for these drugs in the U.S. exceed the global benchmarks, the program will apply rebates to lower the cost for Medicare beneficiaries. This approach is modeled after pricing systems used in other countries, where drug prices are often lower due to government-negotiated rates.
On the other hand, the GUARD program will extend this pricing strategy to Medicare Part D outpatient medications, which are typically prescribed for chronic conditions and are purchased through private insurers. Like GLOBE, GUARD will compare U.S. drug prices with international standards and introduce rebates if U.S. prices are disproportionately high. The goal is to create a more affordable drug pricing structure for seniors and individuals with disabilities, providing them with the financial relief needed to access essential treatments.
Both pilot programs are set to begin between October 2026 and January 2027, with the full implementation planned to last through 2031. CMS officials hope that these initiatives will not only improve the affordability of prescription drugs for Medicare recipients but also set a precedent for future drug pricing reforms across the country.
These programs reflect a broader federal push to align U.S. drug costs with international pricing standards. For years, Americans have paid higher prices for prescription medications than people in other developed nations, sparking debate over how to address the issue. With these new pilot programs, CMS aims to reduce the financial burden on Medicare recipients and ensure that lifesaving medications are accessible to all.
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The GLOBE and GUARD initiatives mark a critical step in the ongoing effort to control rising healthcare costs in the U.S. By aligning the prices of medications with global standards, CMS hopes to create a more sustainable and equitable healthcare system that benefits both patients and taxpayers. The programs are expected to be closely monitored by healthcare experts, policymakers, and industry stakeholders, as they could serve as a model for broader healthcare reforms in the future.
