This legislation clarifies that states are permitted to provide medical assistance for primary care services through direct primary care arrangements under their Medicaid programs, including via managed care organizations or as part of value-based care initiatives. A direct primary care arrangement is defined as one where an individual receives only primary care services from primary care practitioners, with the sole compensation being a fixed periodic fee. To facilitate implementation, the bill requires the Secretary of Health and Human Services to convene stakeholders and issue guidance to states within one year on how to integrate these arrangements into their Medicaid plans. Additionally, within two years, the Secretary must submit a report to Congress analyzing the extent of state contracting with independent providers for Medicaid services and evaluating the quality and cost of care furnished under direct primary care arrangements through Medicaid managed care. These provisions do not alter existing Medicaid cost-sharing requirements nor limit medical assistance solely to direct primary care models, ensuring flexibility for states and beneficiaries.