Bipartisan bill introduced by Reps. Schrader (D-OR), Guthrie (R-KY) and Mullin (R-OK) creates a new drug pricing paradigm allowing value-based payments
WASHINGTON, DC (April 5, 2022): Today CAHC issued the following statement in support of the bipartisan H.R. 7389, “Medicaid VBPs for Patients (MVP) Act:”
“The Council for Affordable Health Coverage fully endorses H.R. 7389, the “Medicaid VBPs for Patients Act,” said CAHC President Joel White. “VBPs are a critical tool to make sure we only pay for prescription drugs that work. This bill eliminates statutory barriers that hinder the uptake of these vital innovative payment arrangements in the prescription drug market for both commercial and public payers. We look forward to continuing to work with the bill sponsors and Congress to gain passage of the bill.”
Specifically, the Bill:
- Codifies the multiple best price provisions of the Centers for Medicare and Medicaid Services (CMS) VBP Rule;
- Clarifies how Average Manufacturer Price (AMP) is to be calculated for VBP drugs;
- Establishes a safe harbor to the Federal Anti-Kickback Statute (AKS) for any remuneration that result from a VBP; and
- Requires a GAO study on the effectiveness of VBPs on patient access and overall health costs.
CAHC’s Campaign for Transformative Therapies released a white paper earlier this year that explores the uptake of VBPs among states.