The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 - commonly called the Medicare Modernization Act (MMA) or Medicare Part D - passed congress in 2003 after much controversy among seniors, politicians, employers, tax payers and lobbyists across the country. The intent of the legislation is to assist Medicare Participants with the cost of their prescription drugs - an expense that is increasing by upwards of 15% per year.

Medicare D is easily the most sweeping reform to occur around Medicare since its inception in 1965. Here is a list of some key facts about the Act:

• Takes effect on January 1, 2006
• The Center for Medicare & Medicaid Services (CMS) - the government agency which administers Medicare - has outsourced the administration of Medicare D to private companies. These private companies have had to submit applications to CMS to become an approved provider and administrator of Prescription Drug Plans or PDP's.
• The country will be divided into 34 regions for administrative purposes. Each region will have multiple PDP's available for retirees to contract with for their Medicare D plan administration. The regions were designed to provide a significant number of potential enrollees.
• These plans are different from the Medicare - approved drug discount cards, which phase out by May 15, 2006, or when enrollment in a Medicare Prescription Drug plan takes effect, if earlier.
• Medicare will contract with risk-bearing drug plans in each of 34 regions to provide the new benefit. If two or more risk-bearing plans are not available (including at least one PDP) Medicare will contract with a "fallback" plan to serve beneficiaries in that area.

Please use the navigational links to the left to learn more about how Medicare reform is likely to impact you and how NEBCO can help you navigate the opportunities and challenges of this monumental Act.