The New Medicare Prescription Drug Law: Implications for State Health Plans in Massachusetts

The Medicare Prescription Drug Improvement and Modernization Act of 2003 created a new drug benefit for Medicare recipients, which began in 2006. The new law had significant effects on the Massachusetts Medicaid program, which at the time provided prescription drug and other benefits to about 190,000 Medicare beneficiaries. This policy brief identifies the key factors affecting the interaction between Medicare and Medicaid and describes the impacts "financial, programmatic and administrative" of the new drug benefit on the Medicaid program in Massachusetts.