Medicare Modernization Essay

1141 WordsJan 21, 20095 Pages
Introduction On December 8, 2003, President Bush signed into existence the Medicare Prescription Drug, Improvement, and Modernization Act (CMS, 2003). 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 (CMS, 2003). Why were changes to Medicare deemed necessary? The changes to Medicare where deemed necessary, because many seniors and elderly began to find that prescription medication necessary for their well being was out of reach due to costs (CMS, 2003). An overhaul of Medicare would reverse this; create affordable prescription medication, better and…show more content…
Healthcare organizations such as Academy of Managed Care Pharmacy, AdvancePCS, American Gastroenterological Association, American Geriatrics Society, BlueCross BlueShield Association, California Healthcare Association, CIGNA, Missouri Hospital Association and Mutual of Omaha, also influenced the development of the legislation. Their role was to ensure Medicare modernization and competitiveness (Committee on Ways and Means, 2003). Employers would also benefit and get subsidies to discourage them from eliminating private prescription coverage to retired workers (Committee on Ways and Means, 2003). The following employers supported the modernization bill, 3M Company, Ahold USA, Inc., The Aluminum Association, American Benefits Council, American Chemistry Council, National Federation of Independent Businesses, National Mining Association, National Restaurant Association, and the National Retail Federation (Committee on Ways and Means, 2003). Why was the legislation controversial? Discuss the claims of the law's supporters and detractors. Who will benefit from the changes? The legislation was controversial because major changes where going to be made to a policy that had stood for almost forty years. Another significant factor for the conservatives that opposed the program was the cost. It was estimated at $400 billion dollars. However, in reality it is expected to cost almost a
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