Issue Brief 19-33
November 15, 2019

The Centers for Medicare & Medicaid Services (CMS) recently notified states of a correction to next year’s clawback charges—the cost-sharing payments to the federal government for the Medicare Part D prescription drug program. A previous notice—released in October—incorrectly used a 2.59% growth rate.  The revised CMS release states that the per-beneficiary monthly clawback charge will increase 5.21% in calendar year (CY) 2020—the same increase announced in April because no additional adjustments were required.

Based on the release, FFIS estimates that CY 2020 clawbacks will cost states $12.5 billion, a 4.7% ($564 million) increase from CY 2019.