A newly finalized Medicare program could reduce out-of-pocket costs for some beneficiaries receiving expensive medications in a doctor's office, hospital outpatient department, or other clinical setting beginning in 2027.
On September 30, 2026, the Centers for Medicare & Medicaid Services finalized the Global Benchmark for Efficient Drug Pricing Model, or GLOBE Model. Unlike Medicare Part D, which generally covers prescriptions you obtain from a pharmacy, this new program focuses on certain drugs covered by Original Medicare Part B—including some medications used for cancer, autoimmune diseases, arthritis, eye conditions, and other illnesses. Centers for Medicare & Medicaid Services
For Medicare beneficiaries in Tampa Bay, Apollo Beach, Riverview, Brandon, Bradenton, Sarasota, and elsewhere along Florida's Gulf Coast, here's what the new program actually means—and why most beneficiaries should not expect their drug costs to change immediately.
First, What's the Difference Between Part B and Part D Drugs?
Many people understandably think of all Medicare prescription coverage as Part D.
But Medicare Part B also covers certain medications.
Part D generally covers prescription drugs that beneficiaries obtain through pharmacies or other Part D channels. Part B can cover certain drugs administered by a physician or other healthcare professional in a clinical setting.
CMS says the GLOBE Model specifically focuses on certain separately payable Part B drugs and biological products that are typically administered by clinicians. Centers for Medicare & Medicaid Services
That distinction matters because the new program isn't a general reduction in the price of every prescription a Medicare beneficiary takes.
What Is the New GLOBE Model?
CMS says the GLOBE Model will test a different way of calculating rebates for certain Medicare Part B drugs.
The basic idea is to use drug-pricing information from economically comparable countries to establish a benchmark for selected medications. CMS will then test whether this approach can reduce costs to Medicare and Original Medicare beneficiaries while maintaining or improving quality of care. Centers for Medicare & Medicaid Services
The model officially launches January 1, 2027 and is scheduled to operate through March 31, 2032. Manufacturer rebate invoicing and reconciliation will continue beyond that date. Centers for Medicare & Medicaid Services
However, beneficiaries selected for the program aren't expected to see reduced coinsurance from the model until April 1, 2027. Centers for Medicare & Medicaid Services
That's an important detail when reading headlines suggesting that Part B drug prices are simply dropping on January 1.
Who Could Be Affected?
Not every Medicare beneficiary will participate.
CMS says the model will apply to people who:
Have Original Medicare as their primary coverage;
Live in geographic areas randomly selected for the model; and
Receive one of the drugs included in the program.
CMS estimates the selected geographic areas will encompass approximately 25% of Medicare beneficiaries who have Original Medicare as their primary coverage. Centers for Medicare & Medicaid Services
That means this is a significant national demonstration, but it isn't a universal Medicare benefit affecting everyone.
Whether particular areas of Florida are included will depend on CMS's geographic selection and the beneficiary's circumstances.
What Types of Medications Could Be Included?
CMS says drugs selected for the GLOBE Model will come from several therapeutic categories, including:
Oncology, rheumatology, immunology, ophthalmology, and endocrinology. Centers for Medicare & Medicaid Services
In practical terms, those categories can include drugs used to treat serious conditions such as cancer, autoimmune diseases, arthritis, and certain eye or endocrine conditions.
The program doesn't include every drug within those categories.
CMS says eligible drugs will be selected from a subset of Part B rebatable drugs and must meet additional program requirements. The agency also finalized several exclusions.
For example, certain orphan-only drugs, plasma-derived products, and certain cell and gene therapies are excluded. Biosimilars and their reference biological products are also excluded once a biosimilar enters the U.S. market, according to CMS. Centers for Medicare & Medicaid Services
How Could This Lower a Beneficiary's Costs?
This is where the new program becomes particularly relevant for seniors receiving expensive Part B medications.
Under Original Medicare, beneficiaries can be responsible for coinsurance on many Part B-covered services and medications unless another form of coverage helps with those expenses.
Under GLOBE, CMS says qualifying beneficiaries' out-of-pocket costs for selected medications will be tied to the international pricing benchmark used by the model.
CMS expects that to result in reduced drug costs for affected Original Medicare beneficiaries receiving selected GLOBE medications. Centers for Medicare & Medicaid Services
CMS says reduced beneficiary coinsurance amounts under the model are scheduled to apply from April 1, 2027 through March 31, 2032. Centers for Medicare & Medicaid Services
Exactly how much an individual beneficiary might save will depend on the medication, Medicare's allowed amount, whether the beneficiary lives in a selected geographic area, and any additional coverage they have.
So there is no single dollar amount that every participant should expect to save.
Does This Affect Medicare Advantage?
The newly finalized model is specifically designed around drugs payable under Original Medicare Part B.
CMS says the geographic portion of the program encompasses approximately 25% of beneficiaries who have Original Medicare as their primary coverage. Centers for Medicare & Medicaid Services
Medicare Advantage plans must cover Medicare-covered Part A and Part B services, subject to Medicare rules and plan requirements, but beneficiaries should not assume that this particular Original Medicare demonstration will automatically produce the same cost changes in an individual Medicare Advantage plan.
If you're enrolled in Medicare Advantage, review your plan's 2027 Evidence of Coverage and other plan materials to understand your costs for physician-administered medications.
Why This Matters on Florida's Gulf Coast
Florida has one of the country's largest Medicare populations, and many beneficiaries receive ongoing treatment for chronic or serious illnesses.
For someone receiving an expensive infusion, injection, or other clinician-administered medication, the distinction between Part B and Part D can have a meaningful financial impact.
But this new announcement is also a good example of why Medicare headlines require context.
This is not a $0-drug program.
It does not apply to every Medicare beneficiary.
It does not apply to every Part B medication.
And reduced beneficiary coinsurance under the model doesn't begin until April 1, 2027. Centers for Medicare & Medicaid Services
Knowing those details can help Florida seniors avoid making coverage decisions based on an oversimplified headline.
Frequently Asked Questions
Is Medicare lowering prescription drug prices in 2027?
CMS has finalized the GLOBE Model, which is intended to reduce costs for certain Part B drugs for qualifying Original Medicare beneficiaries in selected geographic areas. It does not lower the price of every Medicare-covered prescription. Centers for Medicare & Medicaid Services
When does the GLOBE Model begin?
The model launches January 1, 2027. Reduced beneficiary coinsurance under the model is scheduled to begin April 1, 2027. Centers for Medicare & Medicaid Services
Will everyone with Medicare participate?
No. CMS says the geographic areas selected for the model will encompass approximately 25% of Medicare beneficiaries who have Original Medicare as their primary coverage. Other eligibility requirements also apply. Centers for Medicare & Medicaid Services
What medications could be affected?
CMS says selected drugs can come from oncology, rheumatology, immunology, ophthalmology, and endocrinology therapeutic classes, subject to the program's inclusion and exclusion rules. Centers for Medicare & Medicaid Services
Is this the same as Medicare Part D?
No. GLOBE focuses on certain medications payable under Original Medicare Part B, including drugs typically administered by healthcare professionals in clinical settings. Centers for Medicare & Medicaid Services
Medicare Is Changing—Understand What Actually Applies to You
Changes involving Medicare drug coverage can sound straightforward in a headline but become much more complicated once Part B, Part D, Original Medicare, Medicare Advantage, geographic eligibility, and supplemental coverage enter the picture.
The important question isn't simply, “Did Medicare lower drug prices?”
It's “Does this particular Medicare change apply to my coverage and the medications I receive?”
If you live in Tampa Bay, Apollo Beach, Riverview, Brandon, Bradenton, Sarasota, or elsewhere along Florida's Gulf Coast, My Local Coverage can help you understand your Medicare coverage and the options available to you.
Visit My Local Coverage or call (813) 608-0986 for personalized help.
Summary
CMS finalized the new GLOBE Model on September 30, 2026, targeting certain expensive medications administered under Original Medicare Part B. The program begins January 1, 2027, while reduced beneficiary coinsurance for qualifying medications is scheduled to begin April 1. Centers for Medicare & Medicaid Services
The program will not apply to everyone. CMS says selected geographic areas will encompass about 25% of beneficiaries with Original Medicare as their primary coverage, and only qualifying medications are included. The biggest takeaway for Florida seniors is that this is a targeted Medicare drug-cost demonstration—not a blanket reduction in prescription costs.
