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By Marie Cheine, Medical Writer

At 11:10 A.M. EST on December 8, 2003, the President signed the Medicare Prescription Drug, Improvement and Modernization Act of 2003 at DAR Constitution Hall Washington, D.C.

In his opening remarks, the President said, “In a few moments I will have the honor of signing an historic act of Congress into law. I'm pleased that all of you are here to witness the greatest advance in health care coverage for America's seniors since the founding of Medicare.”

Exactly what is in the Medicare plan?
The Senate and the House of Representatives of the United States Congress set out to amend title XVIII of the Social Security Act to provide for a voluntary program for prescription drug coverage under the Medicare Program, to modernize the Medicare Program, to amend the Internal Revenue Code of 1986 to allow a deduction to individuals for amounts contributed to health savings security accounts and health savings accounts, to provide for the disposition of unused health benefits in cafeteria plans and flexible spending arrangements, and for other purposes.

The highlights of the new bill include:
    · 35 monthly premium
    · $250 annual deductible
    · 75% coverage until $2250 total costs
    · No coverage between $2200-$5100
    · Annual out-of-pocket limit $3600/yr (plus 5% over $5100)
    · 95% coverage above $5100 total

For more detailed questions and answers the AARP (a nonprofit membership organization dedicated to addressing the needs and interests of persons 50 and older) has set up a question and answer page available to the public at: http://www.aarp.org/prescriptiondrugs/informed/Articles/a2003-12-09-billfaq.html#what

The bill will also provide extra help for low-income beneficiaries. Nevertheless, according to Marilyn Moon, vice president and director of health for the American Institutes for Research in Washington, 33 percent of beneficiaries with incomes up to 135 percent of poverty and 47 percent of those at 150 percent have asset totals that would preclude them from help.

What are Prescription Discount Cards?
This new drug benefit will not be available until 2006, but in the spring of 2004, discount drug cards will be available for Medicare beneficiaries. This card will cost approximately $30.00 and, in many cases, can provide savings on prescriptions. Individuals whose income is less than $12,124 each year or married couples whose income is less than $16,363 may also qualify for $600 to help pay for prescription drugs.

Summary
American Medical Association President, Dr. Donald Palmisano, stated, “This Thanksgiving, Congress and the Bush Administration have given America’s seniors a Medicare bill for which they can be truly thankful.”

Other provisions of this new bill seniors can be thankful for include:
    · Healthcare choices that provide the coverage that best meet the        beneficiary’s needs.
    · Comprehensive screening for diabetes and cardiovascular        disease, which will encourage earlier diagnosis and treatment.
    · Coverage for blood tests that can diagnose heart diseases and for        those at high risk for diabetes for blood sugar screening coverage
    · A pilot project to get health-care providers to work more closely        with patients to control their chronic diseases and keep them out        of hospitals.
    · Ability to pay for out-of-pocket health care expenses through new        Health Savings Accounts.
    · A strengthening of rural care
    · Electronic prescribing of medications

After the historic signing of the Medicare bill, President Bush said, “ Now I'm honored and pleased to sign this historic piece of legislation: the Medicare Prescription Drug Improvement and Modernization Act of 2003.

For updates on Medicare, contact Medicare help line, 1-800-Medicare or the website www.medicare.gov.