The Center for American Principles issued a statement in response to the Centers for Medicare & Medicaid Services (CMS) final rule implementing the “Global Benchmark for Efficient Drug Pricing” (GLOBE) payment model.
The GLOBE model would impose rebates on certain Medicare Part B medicines when U.S. prices exceed benchmarks derived from prices paid in foreign countries. CAP President Anthony Zagotta criticized the policy as an expansion of government price controls that CAP believes exceeds the intended authority of the Center for Medicare and Medicaid Innovation.
Zagotta warned that tying Medicare payments to prices established in foreign countries could undermine private-sector competition and incentives for biomedical research and development. CAP also argues that similar price restrictions abroad have limited access to new medicines and that GLOBE could introduce comparable barriers for American patients.
CAP further questions whether the model will produce meaningful out-of-pocket savings for patients and argues that maintaining a market-driven system for biomedical innovation is important both for developing future treatments and preserving U.S. leadership as international competition in the life sciences increases.