The Centers for Medicare & Medicaid Services (CMS) recently notified states of calendar year (CY) 2024 clawback multipliers, which are used to calculate state payments to the federal government for the Medicare Part D prescription drug program. According to the CMS release, the per-beneficiary monthly clawback charge will increase by 8.01%.
In addition to significant Part D expenditure growth, states will see higher clawback costs in CY 2024 due to the December 31, 2023, termination of the temporary Federal Medical Assistance Percentage (FMAP) increase implemented in response to the COVID-19 public health emergency (PHE).
FFIS estimates that CY 2024 clawbacks will cost states almost $19 billion, an 18.9% ($3 billion) increase from CY 2023.