S. 1637 · Where this bill is now
In committee
Introduced in the Senate, May 7, 2025
What this bill does
In plain words · AI-written from the official summaryLinks drug prices to patient outcomes
This bill gives legal authority for Medicaid to use value-based purchasing arrangements, where the price of a drug changes depending on how well it works for patients. This approach is especially used for expensive new treatments like gene therapies. The bill also tells Medicare to exclude these specially-priced drugs from certain payment calculations, and requires the government to give states guidance on how to use this method for drugs given in hospitals.
How it affects you
If you're covered by Medicaid or Medicare, this could eventually affect what you pay for expensive drugs and how they're priced, though the exact impact depends on how states and the government use these new rules. The bill requires a government study to measure whether value-based purchasing actually helps federal health programs, so the real effects on patients and costs aren't yet clear.
Read the official summary (Introduced in Senate, May 7, 2025)
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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1637
A BILL
MVP Act
Sponsor: Sen. Markwayne Mullin (R-OK) · Introduced May 7, 2025 · Health · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action May 7, 2025: “Read twice and referred to the Committee on Finance.”
Sections
Sections · 6
- Sec. 1Short titleNo change
- Sec. 2Codifying value-based purchasing arrangements under Medicaid and reforms related to price reporting under such arrangementsNo change
- Sec. 3Calculation of average sales price under MedicareNo change
- Sec. 4Guidance on value-based purchasing arrangements for inpatient drugs under MedicaidNo change
- Sec. 5Exception under the antikickback statuteNo change
- Sec. 6GAO study and report on use of value-based purchasing arrangementsNo change