On October 2, the Centers for Medicare & Medicaid Services published a final rule for a new Medicare Part B drug-price test called the GLOBE Model. The rule takes effect November 30. The first performance year begins April 1, 2027.
The model will apply to a test group drawn from about 25% of eligible people with Original Medicare Part B. CMS will randomly select geographic areas built from groups of ZIP codes. It will then use each beneficiary's address of record to identify who is in the test group. Medicare Advantage members and people with certain other primary coverage are outside that group.
That address is only one part of the decision. The model covers a limited set of separately payable Part B drugs, generally medicines given in a doctor's office or other clinical setting. The drug, the date of service, the beneficiary's coverage, and the model's price calculation must also qualify. Living in a selected area does not promise a lower bill.
Why the address matters
Because a qualifying claim may reduce the beneficiary's coinsurance and increase Medicare's share of the allowed amount, the recorded address becomes relevant when a patient or caregiver tries to understand a charge. Medicare says official address changes go through Social Security, even for people who do not receive Social Security benefits. A beneficiary can review and update that information through a personal my Social Security account.
Before April 2027, confirm that the official address on the Medicare record is current. If a Part B drug charge later looks unfamiliar, keep the drug name or billing code, date of service, Medicare Summary Notice, and address record together when asking the provider's billing office or Medicare to explain the coinsurance.
CMS is testing whether this payment model can reduce costs while preserving care quality. It has projections, but no results yet. For the first bill, the useful question is narrower: what address and model status did Medicare use for this claim?