MVP Act
Rep. Guthrie Introduces MVP Act to Link Medicaid Drug Payments to Patient Outcomes
Legislative Progress
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.
Impact Analysis
Personal Impact
Life & Work
Smaller pharmaceutical and biotech companies developing high-cost therapies like gene treatments would benefit from clearer rules around value-based pricing. The bill removes legal uncertainty about anti-kickback laws and price reporting, making it easier for these companies to offer performance-based deals to Medicaid without risking compliance violations.
Programs
Disabilities
Milestones
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.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
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.
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.
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.
Source Information
Document Type
Congressional Bill
Official Title
MVP Act
Data Sources
Sponsor
Cosponsors
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