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Congress·In Committee

Rep. Guthrie Introduces MVP Act to Link Medicaid Drug Payments to Patient Outcomes

MVP Act

Also known as: MVP Act

1 day ago·View on Congress.gov

Legislative Progress

House
Senate
President
Law

Key Points

  • This bill allows Medicaid to enter into "pay-for-performance" deals with drug companies. Instead of paying a flat fee, the price of a drug could go down or the state could get a refund if the medicine doesn't work as promised for a patient.
  • It updates federal rules to allow drug makers to report multiple "best prices." This change makes it easier for companies to offer special discounts to Medicaid programs without accidentally triggering complicated price rules that affect their entire business.
  • The policy is designed to help states afford very expensive, one-time treatments like gene therapies for rare diseases. Since these cures can cost millions of dollars, these deals ensure the public doesn't pay full price for a treatment that fails to help the patient.
  • It creates a legal "safe harbor" so that performance-based refunds aren't treated as illegal kickbacks. This gives states and drug companies more freedom to experiment with new ways to lower costs without fear of breaking old anti-bribery laws.
  • The government will track the results of these deals through 2029. A formal study will look at whether these arrangements actually lower healthcare costs and help patients with rare diseases get better care more quickly.
HealthcareEconomy Finance

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Mar 9, 2026House

Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Mar 9, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within 180 days of enactment

HHS must issue new rules on drug price reporting and guidance to states on value-based purchasing for inpatient drugs

Within 180 days of becoming law, states would have clear federal guidance on how to set up pay-for-results deals with drug companies, and drug makers would know exactly how to report prices under these new arrangements.

2029-06-30

GAO publishes a report to Congress on how well value-based purchasing arrangements are working

By mid-2029, Congress would have data on whether these pay-for-results deals actually lowered costs and improved patient access to expensive therapies, which could shape future drug pricing policy.

Related News

3 articles
BioWorld·almost 3 years ago

Congress, states staging Act 2 of US Rx pricing reforms

The Medicaid VBPs for Patients (MVP) Act is intended to codify current Medicaid rules that permit the use of varying 'best price' points under voluntary, value-based state purchasing arrangements for curative cell and gene therapies, ensuring taxpayers aren't on the hook for ineffective treatments.

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340B Report·almost 5 years ago

CMS Moves to Delay Multiple-Best-Price Rule For Value-Based Drug Purchases

This report covers the regulatory foundation of the MVP Act, specifically the CMS rule allowing multiple best prices in Medicaid. The rule was intended to encourage drug manufacturers to enter into value-based agreements by protecting them from triggering a single low 'best price' across the board.

C=
Managed Healthcare Executive·about 1 month ago

Top 5 conference coverage articles in 2025

Coverage of the AMCP annual meeting highlights the MVP Act as a critical tool for modernizing the Medicaid payment framework. The bill allows manufacturers to report multiple best prices, facilitating outcomes-based contracts for expensive cell and gene therapies.

C=

Source Information

Document Type

Congressional Bill

Official Title

MVP Act

Bill NumberHR 7871
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsor

Cosponsors

(5)
D: 3R: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.