Health Law & Policy Institute

MEDICARE PART D

THE FEDERAL MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION ACT OF 2003 (MMA) will offer both challenges and opportunities for Texas. At the request of a legislator, the Institute prepared a briefing paper that will help legislators and state agencies to understand both the policy and budgetary implications arising from the MMA. For example, Texas should eventually benefit fiscally from the new provisions providing prescription drug benefits to dual eligibles (those eligible for both Medicare and Medicaid) through Medicare Part D, but Texas will incur significant expenses in administering a new lowincome Part D subsidy. Texas state retirement plans may also benefit from the subsidy provided to qualified retiree health plans.