Excluding orphan drug therapies from Medicare pricing pilots could erase most cost savings
A Harvard researcher warns that leaving rare disease treatments out of two Medicare price-control pilots would eliminate the majority of projected savings on retail drugs.
Researchers at Harvard University have found that removing rare disease drugs from the Global Benchmark for Efficient Drug Pricing (GLOBE) and Guarding U.S. Medicare Against Rising Drug Costs (GUARD) pilots would wipe out most of the anticipated savings on retail pharmaceuticals. Biotech companies are lobbying the Trump administration to secure such exemptions, arguing that orphan treatments need special consideration.
The two pilots are central to President Trump’s effort to bring U.S. drug prices down to levels seen in other wealthy countries through a “most-favored nation” approach. The exact scope of the pilots is still being defined, and some major drugmakers that have entered pricing agreements with the White House say they are already excluded, though the terms are not public. If the exemptions are granted, the cost-containment impact of the pilots would be severely compromised.
Why it matters
The potential loss of savings could keep drug prices high for millions of Medicare beneficiaries.
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