Issue Brief 10-04
January 13, 2010
Summary 

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.” Multipliers released by the Centers for Medicare and Medicaid Services (CMS) in October 2009, indicate that the per-beneficiary monthly clawback charge to states will increase 2.7% in calendar year (CY) 2010.