PhRMA sues to block CMS’s Medicare Part B foreign-price model

On Oct. 7, 2026, the Pharmaceutical Research and Manufacturers of America (PhRMA) sued the Trump administration in federal court in Washington, D.C., seeking to overturn CMS’s GLOBE model for Medicare Part B drugs.

GLOBE—short for Global Benchmark for Efficient Drug Pricing—would calculate rebates for certain Part B medicines using prices in 19 other countries. CMS finalized the model last week; it is scheduled to begin Jan. 1, 2027.

PhRMA argues CMS exceeded its authority to test payment models, effectively imposing nationwide price-setting and changing Medicare’s statutory rebate framework without Congress’s approval. It also raises separation-of-powers concerns and objects to benchmarks influenced by countries’ use of quality-adjusted life years.

The lawsuit asks the court to declare the rule unlawful and block it. The administration’s final version is narrower than its proposal, and the reported savings estimate fell substantially—from $11.9 billion to about $440 million over seven years. Reports also say many companies may be exempt if they agree to voluntary pricing arrangements.

The dispute echoes the first Trump administration’s MFN effort, which PhRMA helped challenge successfully; that earlier rule was blocked on procedural grounds, rather than finally resolved on the merits.