Trump administration trims Medicare drug pricing rule, slashing projected savings

Washington reported that the Trump administration issued a final rule to modify the GLOBE pilot, a mandatory program intended to align Medicare drug prices with those in other affluent nations. The rule now applies to only four pharmaceutical firms and does not list them by name, while also excluding drugs for rare diseases unless they also treat non-rare conditions. Firms that have entered voluntary most-favored-nation pricing deals with the administration are exempt from the pilot, a departure from the earlier draft that would have included a broader range of drugs.

Because of these changes, Medicare actuaries now estimate the program will save roughly $440 million, a steep drop from the nearly $12 billion projected in the proposal. Harvard analyst Thomas Hwang said the revised estimate matches his own calculations. The related GUARD pilot remains pending as a proposal.