The Medicare Modernization Act became effective on January 1 st of 2004. The purpose was to expand the Medicare program to include prescription drugs to all seniors and to be the most cost effective for the neediest citizens. Medicare Part A covers hospitalization, and Part B medical care. Part C created newer Medicare Health Plans called Medicare Advantage, and now the addition of Rx to Medicare is Part D.
The addition of Health Savings Accounts takes up 8 pages in the Medicare Modernization Act (MMA). The idea behind this as part of the Medicare Program is to allow people who have funds in their H.S.A’s the ability to purchase prescriptions and Long Term Care with Tax Advantaged dollars.
For Information about The New Medicare click here.