MVP Act
Key claim: The MVP Act would give statutory authority to value-based purchasing arrangements under the Medicaid Drug Rebate Program, allowing varying best price points tied to clinical outcomes, and exempts such sales from Medicare average sales price calculations.
Abstract
(HR7871 · 119th Congress) Medicaid VBPs for Patients Act or the MVP Act This bill provides statutory authority for regulations that allow for the use of varying best price points under value-based purchasing arrangements for purposes of the Medicaid Drug Rebate Program. ( Value-based purchasing arrangements refer to arrangements in which the price of a drug is linked to clinical outcomes; such arrangements are particularly used for new high-cost treatments, such as gene therapies.) The Government Accountability Office must study the impact of value-based purchasing arrangements on federal health care programs, including with respect to the bill’s changes. Additionally, the bill (1) exempts sales of drugs that are made under value-based purchasing arrangements from calculations of the manufacturer average sales price for purposes of payments under Medicare medical services, if the manufacturer reports multiple best prices under Medicaid in accordance with the bill’s changes; and (2) requires the Centers for Medicare & Medicaid Services to issue guidance on how state Medicaid programs may cover drugs in inpatient settings via value-based purchasing arrangements. Latest action (2026-03-09): 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.
Why this matters
The MVP Act would remove long-standing regulatory obstacles — chiefly Medicaid best-price and Medicare ASP reporting — that manufacturers cite as barriers to outcome-based contracts, particularly for high-cost gene and cell therapies. If enacted, payers and manufacturers could tie payment to clinical results without triggering rebate cascades, potentially affecting what Medicaid and Medicare pay and what coverage arrangements patients encounter.