Health Policy
Unit 4 IP
Cassandra Nunnelly
AIU Online
October 25, 2013 Abstract The Medicare Prescription Drug, Improvement, and Modernization Act 2003, was signed into existence by President Bush on December 8, 2003. To approve the H.R. 1, the Medicare Prescription drug and modernization conference agreement, on November 22, 2003, the House of Representatives voted 220 to 215 and on November 25, the Senate voted 54 to 44 in order to approve the conference agreement. This Act over the years is intended to provide prescription drug benefits to seniors. It will also provide subsidies to insurance companies, health maintenance organizations, and would allow private plans to compete with Medicare 2003.

Health Policy The Medicare Prescription Drug, Improvement, and Modernization Act 2003, was signed into law by President Bush on December 8, 2003. To approve the H.R. 1, the Medicare
Prescription drug and modernization conference agreement, on November 22, 2003, the House of Representatives voted 220 to 215 and on November 25, the Senate voted 54 to 44 in order to approve the conference agreement. This Act is created to provide prescription drug benefits to seniors. It will also provide subsidies to insurance companies, health maintenance organizations, and would allow private plans to compete with Medicare 2003(Jennifer O’Sullivan, Hinda Chaikind, Sibyl Tilson, Jennifer Boulanger, and Paulette Morgan, 2003).

Why were changes to Medicare deemed necessary?

The changes are deemed necessary, because several American seniors and elderly started to find that prescription medication is necessary for their welfare may be out of reach because of the costs. A revamp of Medicare would change this; generate reasonably priced prescription medication, better and more reasonably priced healthcare plans. To reduce the overall expense of Medicare was another reason for Medicare modernization, due to the rate it was going, there was estimation that Medicare would run out of funds approximately in 2026.

This act ensures that prescription medication was reasonably priced for American seniors, and it will generate competition, make Medicare more effective, and establish options for American seniors. Intended to providing $400 billion, this health policy, will assist more than 40 million American seniors get prescription medication at an reasonable price. The part of the bill about prescription, Medicare part D, started in 2006, and Medicare beneficiary pay a lowest amount of $35 per month, and a deductible of $250 for prescriptions. The plan would pay 75% of costs up to $2,250. The purpose is to renovate Medicare and offer 21st century care for the American seniors.

What are the main provisions of the new legislation? Do you think they accomplish the desired goals?

The main provisions of the new legislation are for our American seniors to be provided with reasonably priced prescription medication; construct Medicare to be more competitive; rely on private insurance companies to offer coverage and to endure some of the financial risk for drug costs; and federal subsidies covering the greater part of the risk would be provided to promote involvement. Plans will decide payments and would be likely to negotiate prices (O’Sullivan, Chaikind, Tilson, Boulanger, and Morgan, 2003). There is still room to tell if these goals are totally accomplished.
Who was involved in setting the agenda for this policy change? Discuss the roles and interests of specific agenda setters and their influence on the development of the legislation. President Bush and his administration, Tommy Thompson, Secretary. Some others who attend the meeting with President Bush were: Jim Parkel, AARP President, of Fairfield, Connecticut, a organization of 35 million members, provide a seal of approval. AARP committed $7 million to a newspaper for a week long television and newspaper advertising movement intended for Medicare beneficiaries. AARP endorsement infuriated their allies in the Democratic leadership, consumer and labor groups. About 60,000 members, in protest, did not renew their memberships or just resigned. Heritage Foundation and the National Taxpayers Union, a Conservative group, stated the new benefit was a burden to the economy and taxpayers. They opposed any legislation which had no direct competition among the free-for-service and manage care programs (Thomas R Oliver, Philip R Lee, and Helene L Lipton, 2004).
Why was the legislation controversial? Discuss the claims of the law's supporters and detractors. Who will benefit from the changes? A reason it was controversial is due to the requirement for American seniors with higher income pay more for their Medicare Part B coverage and billions of dollars to deter corporations from do away with existing coverage for retirees when the government program starts.
Do you think having electronically stored data (such as costs and access to individual patient files) played a role in the decision-making process? I feel electronically stored data did play a role in the decision making process, it will facilitate drug utilization review, medication therapy management, and quality assurance. It will protect the security and confidentiality of health information so that it will not be accidentally disclosed.

Reference Jennifer O’Sullivan, Hinda Chaikind, Sibyl Tilson, Jennifer Boulanger, and Paulette Morgan, (2003). Overview of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. Retrieved from http://royce.house.gov.
Thomas R Oliver, Philip R Lee, and Helene L Lipton, (2004). A Political History of Medicare and Prescription Drug Coverage. Retrieved from http://www.ncbi.nlm.nih.gov.