PhRMA Sues Trump Over Medicare GLOBE Pricing Program

On Oct. 7, 2026, the Pharmaceutical Research and Manufacturers of America sued in the U.S. District Court for the District of Columbia to block CMS's Global Benchmark for Efficient Drug Pricing Model, or GLOBE. GLOBE would trigger rebates when Medicare Part B drug prices exceed those in comparable developed countries, using most-favored-nation pricing. It is expected to start Jan. 1. Defendants are CMS, the Center for Medicare and Medicaid Innovation, HHS, and leaders Mehmet Oz, Abe Sutton, and Robert F. Kennedy Jr. PhRMA argues CMS exceeded its authority by imposing foreign-linked price controls through a model-testing program without congressional approval. In the filing it wrote that MFN pricing would lead to the loss of hundreds of new treatments over the next decade, preventing both new drug approvals and approvals for new indications of existing drugs. The administration has defended the rule as authorized under existing law, saying Congress established a framework for testing such models. Wall Street Journal reporting cited in coverage says the program is expected to apply to just four manufacturers and that makers with any of 26 existing MFN agreements are expected to be exempt. CMS and HHS did not immediately respond to comment requests.