Issue Brief 14-38
November 6, 2014

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 the MMA, the Centers for Medicare & Medicaid Services (CMS) must notify states by October 15 of their clawback charges for the coming year. The recent CMS release indicates that the per-beneficiary monthly clawback charge to states will increase by 1.39% in calendar year (CY) 2015, following last year’s decline of -6.07%.