Issue Brief 17-34
October 27, 2017

The Centers for Medicare & Medicaid Services (CMS) recently notified states of next year’s clawback charges—the cost-sharing payments to the federal government for the Medicare Part D prescription drug program. The CMS release indicates that the per-beneficiary monthly clawback charge to states will increase by 1.22% in calendar year (CY) 2018—the same increase announced earlier this year because no additional adjustments were required.

This modest growth follows two years of double-digit increases, and is likely due to slowing use of expensive specialty drugs (such as those for Hepatitis C). Based on this increase, FFIS estimates that state payments will total $11.3 billion in CY 2018, an $87 million (0.8%) increase from CY 2017.