Originally published on 12/22/25

On Friday, December 19, the government announced two pilot programs that could potentially reduce out-of-pocket drug costs for older disabled Americans on Medicare: the Guarding U.S. Medicare Against Rising Drug Costs (GUARD) and the Global Benchmark for Efficient Drug Pricing (GLOBE) in 2026 and 2027. If the programs go into effect, they could save Americans serious money, according to the news outlet Axios. To learn more about the programs, keep reading. 

What to know about the new Guarding U.S. Medicare Against Rising Drug Costs (GUARD) pilot program

According to the Centers for Medicare & Medicaid Services (CMS), the GUARD pilot program will use international drug prices to calculate American patients’ out-of-pocket costs for certain Medicare Part D drugs. They hope that by doing this, prices will drop and Americans will be able to save money on there everyday prescription prices. 

“Seniors who rely on Medicare Part D drugs should never have to choose between filling their prescriptions and filling their grocery carts or gas tanks,” CMS Administrator Mehmet Oz, MD, said in a statement. “That’s why we’re proposing the GUARD Model to reduce costs and improve quality of care by addressing the broken pricing system that forces Americans to pay top dollar for drugs foreigners get at a fraction of the cost.”

As of publication, the program is expected to start on January 1, 2027 and will remain in effect for five years. There is no news on which drugs CMS will test the pilot out on, but the government organization did say, “The model would encompass 25 percent of Part D enrollees and would only apply to beneficiaries that live in randomly selected geographic areas of the country.” 

They have not shared what those areas will be or how they will be determining them. There is also no information available on if people can apply to be in the pilot program once the locations are selected. 

“GUARD is an innovative solution designed to bring Americans the drugs they need at prices they can better afford,” CMS Innovation Center Director Abe Sutton said in a statement. 

What to know about the Global Benchmark for Efficient Drug Pricing (GLOBE) pilot program

The GLOBE pilot program will use global price data to determine manufacturer rebates and set out-of-pocket costs for patients or certain drugs included in Medicare Part B. This program will launch October 1, 2026, and run through 2031, but it’s only expected to impact “drugs that are administered in a clinical setting, such as cancer therapies or drugs used to treat autoimmune conditions and arthritis,” according to CMS. 

“For too long, the patients who use Medicare Part B and the taxpayers who fund it have been paying far more than people from comparable countries for the exact same drugs,” Dr. Oz said in a statement. “The proposed GLOBE Model will reduce costs and improve quality of care without slowing down medical innovation. At CMS, we’re not just talking about making life more affordable. We’re delivering results.” 

Similar to GUARD, the GLOBE program will only be available to about 25 percent of Medicare users across the country. CMS has not shared how those people will be determined. 

“GLOBE would help make drugs, like life-saving cancer treatments and cutting-edge autoimmune medications, available at prices Americans can better afford,” Sutton said in a statement. “Americans should not have to choose between medical treatment and daily living expenses.”

Link to original: https://www.womansworld.com/healthcare/medicare-drug-prices-to-drop-under-two-new-pilot-programs