MVP Act

The MVP Act (S 4204) establishes a framework for Medicaid to use value-based purchasing (VBP) arrangements, where drug prices are tied to patient outcomes (e.g., refunds if a drug fails to work as intended). It revises Medicaid’s pricing rules to allow manufacturers to report multiple best price points for VBP drugs and adjusts how "average manufacturer price" is calculated to include outcome-based refunds or rebates. The bill also requires the federal government to issue guidance for states on implementing VBP for inpatient drugs and mandates a GAO study (reporting by 2028) to evaluate VBP’s impact on patient access, outcomes, and costs across Medicaid programs.