Impact on States of the Medicare Drug Benefit: Information for State Administrators


As administrators work to integrate Medicaid and state prescription assistance programs with the new drug benefit established by Part D of the Medicare Modernization Act, there will be significant savings opportunities as well as significant costs. The decisions states make must not only reflect budget considerations, but must also recognize the lead role that states have in providing a safety net to the poorest, frailest, and most vulnerable of our citizens. This issue brief identifies key decision points and factors that must be taken into consideration as states prepare for the January 1, 2006, implementation of the new Medicare drug benefit.