Issue Brief 12-37
October 22, 2012

The Medicare Modernization Act (MMA, P.L. 108-173) that established the Medicare Part D prescription drug program requires states to make cost-sharing payments to the federal government, commonly known as the “clawback.” As required by MMA, the Centers for Medicare & Medicaid Services (CMS) must notify states by October 15 of their per-beneficiary monthly clawback charges for the following year. The recent CMS release indicates that the per-beneficiary monthly clawback charge to states will increase by 0.91% in calendar year (CY) 2013.