PlainBillCongress, translated.Legislation. Context. Public interest.Sponsor introductory remarks on measure. (CR S8546)
Congressional Research Service
Version 00 · Introduced in Senate · Jun 30, 2005
Medicare Value Purchasing (MVP) Act of 2005 - Amends title XVIII (Medicare) to add a new part E (Value-Based Purchasing) under which the Secretary of Health and Human Services shall develop measurement systems to provide value-based payments to: (1) hospitals; (2) physicians and practitioners; (3) health plans; (4) end stage renal disease (ESRD) providers and facilities; and (5) home health agencies.
Directs the Medicare Payment Advisory Commission (MEDPAC) to study how the Medicare value-based purchasing programs will impact Medicare beneficiaries, Medicare providers, and the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund.
Directs the Secretary to establish a program under which value-based payments are provided each fiscal year to hospitals that demonstrate a high quality health care for inpatients entitled to benefits under Medicare part A (Hospital Insurance).
Showing the opening paragraphs of the official summary.
Directs the Secretary to make a value-based payment to a hospital with respect to a fiscal year if the Secretary determines that the quality of the care provided in that year to Medicare inpatients: (1) has substantially improved over the prior year; or (2) exceeds a threshold established by the Secretary.
Prescribes a formula for the amount of such value-based payments, ranging from 1% of their Medicare payments for FY2007 by specified increments up to 2% for FY2011 and after.
Directs the MEDPAC to study and report to Congress and the Secretary on the advisability and feasibility of establishing Medicare value-based purchasing programs, including ones for prescription drugs and renal dialysis facilities.
Directs the Secretary to establish: (1) a Medicare value-based purchasing demonstration program for critical access hospitals; and (2) a demonstration project to determine the threshold amount of information technology connectivity necessary to improve the ability of rural and frontier physicians and practitioners to collect and use quality of care data.
Outlines a Medicare Advantage Plans value-based purchasing program.
Amends the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 to direct the Secretary to implement a value-based purchasing program for providers and facilities participating in the demonstration of bundled case-mix adjusted payment system for ESRD services.
Requires the Secretary to establish chronic kidney disease demonstration projects.
Outlines a value-based purchasing program for home health agencies and for skilled nursing facilities.
Directs the Secretary to study and report to Congress on appropriate measures to evaluate the quality of health care provided by skilled nursing facilities to Medicare patients.
Provides for a national health information network pilot project.
Requires the Secretary to study and report to Congress on telehealth and telemedicine.
People & committees
Sen. Grassley, Chuck [R-IA] · R–IA
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Sponsor introductory remarks on measure. (CR S8546)
Read twice and referred to the Committee on Finance.
Sponsor introductory remarks on measure. (CR 7/1/2005 S7848-7849)
Introduced in Senate
Primary sources
Text links open the official source. We currently store references to these documents.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Aug 15, 2025. Consult Congress.gov for the current record.
AI Conversation Starters
Choose a perspective, copy a prompt, and paste it into your preferred AI. Each prompt includes the bill version and available official source links, and asks for counterarguments as well as supporting evidence.
Analyze S.1356 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
Examine S.1356 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.
Examine S.1356 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.
Examine S.1356 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.