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Medicare Prescription Drug Bill

Background: How It Became Law and What's In It

The U.S. Senate on Nov. 25, 2003, passed the Medicare Prescription Drug, Improvement and Modernization Act of 2003. The vote was 54 to 44. It followed the House's approval of the bill by a 220-215 vote on Nov. 22. The legislation then went to President Bush, who signed the bill into law on Dec. 8.

The act helps seniors gain access to affordable prescription drugs, while giving hospitals the resources needed to help them keep their promises of care. It helps America's teaching hospitals continue training tomorrow's caregivers by restoring needed funding; maintains and strengthens much needed payments to rural hospitals; protects vital community services, from trauma to neonatal care, by placing restrictions on the development of specialty providers; offers relief for hospitals treating large numbers of Medicaid and uninsured patients through the Medicaid disproportionate-share hospital program; and much more.

The bill provides a total of approximately $25 billion over the next 10 years in relief to hospitals.