S.1637 - Medicaid VBPs for Patients Act; MVP Act (119th Congress)
Summary
S.1637, the Medicaid VBPs for Patients Act or MVP Act, aims to amend Title XIX of the Social Security Act to codify value-based purchasing (VBP) arrangements under Medicaid and reform related price reporting. The bill seeks to allow for multiple best price points for drugs under VBP arrangements, clarify the definition of average manufacturer price, and provide guidance on VBP arrangements for inpatient drugs under Medicaid. It also includes an exception under the anti-kickback statute and mandates a GAO study on the use of VBP arrangements.
Expected Effects
The bill is likely to increase the adoption of value-based purchasing arrangements in Medicaid, potentially leading to better patient outcomes and cost savings. It will also require the Secretary of Health and Human Services and the Inspector General to issue rules and guidance related to these arrangements. The GAO study will provide further insight into the effectiveness and impact of VBP arrangements.
Potential Benefits
- Increased access to innovative therapies, including rare disease gene therapies.
- Potential for improved patient outcomes through value-based purchasing arrangements.
- Possible cost savings for state Medicaid programs and the federal government.
- Encourages manufacturers to offer value-based purchasing arrangements to all states, promoting consistency.
- Provides clarity and guidance on implementing value-based purchasing arrangements within the Medicaid program.
Potential Disadvantages
- Potential complexity in implementing and managing value-based purchasing arrangements.
- Risk of increased administrative burden for states and manufacturers.
- Possibility of unintended consequences related to drug pricing and access.
- The GAO study may reveal limitations or challenges in the effectiveness of value-based purchasing arrangements.
- Requires rulemaking and guidance, which may take time and resources.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve healthcare access and outcomes for Medicaid beneficiaries. Specifically, the preamble states the Constitution is intended to "promote the general Welfare". The bill's focus on regulating commerce through healthcare programs also aligns with the powers granted to Congress under the Commerce Clause (Article I, Section 8).
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).