Glossary

clawback

Popular term for “phased-down state contribution” that describes how the federal government is recovering (o r”clawing” back, from the states’ perspective) money spent on Medicare-covered drugs for persons dually eligible for Medicare and Medicaid. Since January 2006, states have made monthly payments to the federal Medicare program, reflecting the amount of money they spent on prescription drugs for Medicaid-eligible seniors (known as dual eligibles) before the enactment of Medicare Part D. Payments were set at 90 percent of costs in FY 2006, decreasing to 75 percent by FY 2015. However, because of the recession of 2007-2009, the federal government reduced the amount each state had to pay from October 1, 2008 through the end of 2010. The Education, Jobs and Medicaid Assistance Act extended this provision through June 30, 2011.