Trump Finalizes Plan to Cut Medicare Drug Prices
The Trump administration has finalized a new program that ties what Medicare pays for some of the most expensive drugs in America to what other wealthy countries pay for the same medicines. The program, called GLOBE, will launch January 1.
What the GLOBE Program Does
Under GLOBE, Medicare will set what it pays for certain high-cost drugs based on prices in 19 other countries with similar economies. The program targets Medicare Part B drugs — typically expensive medicines that doctors or hospitals administer in person, such as cancer and autoimmune treatments. One example cited is Entyvio, made by Takeda, which is used to treat Crohn’s disease and ulcerative colitis.
Lower Prices for Seniors
The logic behind the program is straightforward: American taxpayers and Medicare patients have been paying far more for prescription medicines than people in comparable countries. Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz said Medicare Part B patients “have paid significantly more for prescription medications than people in comparable countries,” and that the agency is taking action to pilot a new approach that lowers costs while preserving medical innovation.
Part of a Bigger Drug Price Push
GLOBE is the latest move in an aggressive administration-wide campaign on prescription drug costs. Trump has already pushed his Most Favored Nation policies and launched the TrumpRx platform, which the White House credits with producing the largest annual drop in U.S. prescription drug prices in more than 60 years, the steepest since 1963. The administration reports that prescription drug prices have fallen every month of 2026, and that TrumpRx has generated $700 million in patient savings so far, with GLP-1 weight-loss drugs that once cost over $1,000 a month now starting at $149.
Drugmakers Push Back
Not everyone is celebrating. The pharmaceutical industry’s trade association has decried the GLOBE rule as unlawful and harmful to patients. The final rule applies to fewer drugs than the administration initially proposed, and drugmakers that cut earlier deals with the White House to lower their prices are expected to be exempt from the current effort. Critics argue the exemptions shrink the program’s reach.
What Happens Next
The five-year demonstration will run as an experiment through Medicare’s Innovation Center. If it shows that linking prices to overseas benchmarks saves taxpayers money without sacrificing quality of care, it could be expanded nationwide. For millions of seniors facing high drug bills, the promise of prices closer to what patients pay in Europe and elsewhere is a tangible win. With affordability ranked as voters’ top concern heading into the November 3 midterms, the White House clearly intends to run on the issue.
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