Sweeping Legislation Creates New Medicare Drug Benefit, Reforms Traditional Medicare Program

Today, President Bush signed the "Medicare Prescription Drug Improvement and Modernization Act of 2003," which adds a voluntary prescription drug benefit to Medicare. The legislation also creates a temporary drug discount card program; makes significant changes in the existing Medicare program, including the payment rules for drugs already covered under Medicare; and changes the rules under which innovator companies can challenge the entry of generics into the market. This summary briefly describes some of the major provisions of the new legislation, focusing on issues relevant to drug manufacturers.