Medicare Modernization Act of 2003

Notes

• approved in December 2003
• created a federal Medicare-sponsored drug plan for senior citizens, called Medicare Part D, effective January 1, 2006
• provides subsidies for employers who continue to provide retired employees with insurance that covers prescription medications
• elimimates coverage for prescription medications by Medicaid
• competition between fee for service Medicare & Medicare Advantage programs
• higher premiums for Medicare part B for beneficiaries with higher incomes
• expanded coverage for preventive services
• increased reimbursement rates to physicans & hospitals in rural areas

Additional terms

• Medicare part D Prescription Drug Plan (PDP)