Trump Administration Finalized Drug Pricing Rule Exemption
A new rule exempts certain drug manufacturers from the GLOBE Medicare drug pricing model requirements.
Updated on Oct. 1, 2026 in Healthcare
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The Trump administration has finalized a rule that exempts manufacturers from the GLOBE Medicare drug pricing model if they previously signed separate pricing agreements with the White House. This regulatory shift limits participation in the model to four specific drug companies.
Why it matters
The change significantly reduces the scope of the program, which was originally intended to curb costs for Medicare Part B. By shifting many drugmakers to separate deals, the administration is narrowing the program's reach compared to initial projections.
The program is now expected to reduce Medicare Part B spending by $440 million, a decrease from the earlier $11.9 billion projection. Currently, only four manufacturers remain subject to the GLOBE model following the exemption of at least 24 companies.
The players
Trump administration
The executive branch of the United States federal government under the leadership of the current President of the United States.
Department of Health and Human Services
The federal department responsible for protecting the health of all Americans and providing essential human services.
The details
The finalized rule grants an exemption to any drug manufacturer that signed a separate most favored nation pricing agreement directly with the Trump administration. This policy change utilizes the GLOBE pricing model to set costs for hospital patients while opting for individual negotiation strategies for the majority of the industry.
Timeline
The administration began signing separate drug pricing agreements with various companies in 2025.
The finalized rule was officially published on October 1, 2026.
Federal and state government drug cost savings are projected over the next decade.
Market Landscape
This policy pivot marks a major departure from the original implementation of the GLOBE Medicare drug pricing model, which was designed to govern pricing across a broader segment of the industry. By incentivizing individual agreements, the government is effectively transitioning from a systemic regulatory approach to a strategy based on private negotiation.
Average Medicare beneficiaries may see changes in how drug costs are managed within hospital settings as fewer manufacturers participate in the standard model. Patients should monitor whether these individual pricing agreements lead to shifts in the availability or cost of specific hospital-administered drugs.
The takeaway
The administration projects that these combined drug pricing efforts will save federal and state governments a total of $64.2 billion over the next decade. Consumers should remain aware that changes to federal drug pricing regulations can significantly alter the cost structure of medical care.
Further reading
For more information on national medical cost strategies, visit our Healthcare section.
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