Medicare Takes a Stand: New Plans to Cut Drug Costs

The U.S. government has unveiled two new initiatives, GUARD and GLOBE, aimed at reducing high drug prices for seniors and individuals with disabilities. These plans are set to launch in 2026 and 2027 and are designed to align Medicare drug prices with those in other economically similar countries.

Key Features of the Plans

• GUARD and GLOBE will utilize price comparisons from other countries to determine drug company rebates and patient out-of-pocket costs.
• GLOBE will focus on drugs treating cancer, autoimmune diseases, eye problems, and hormonal issues, starting in October 2025 and running until 2031.
• GUARD will address drugs covered under Medicare Part D, which assists with outpatient medications, beginning in January 2027 and concluding in 2031.

Impact on Patients

Out-of-pocket costs include co-pays, flat fees, and coinsurance, which is a percentage of the drug price. The goal is to make medications more affordable for those in need.

Potential Challenges

• Drug companies may resist the idea of paying rebates.
• Patients might still face high costs despite the new plans.

Only time will tell if these initiatives will achieve their intended results.