Medicare Prescription Drug and Modernization Act of 2003

Medicare Prescription Drug and Modernization Act of 2003 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to add a new part D (Voluntary Prescription Drug Benefit Program) under which each individual who is entitled to benefits under Medicare part A (Hospital Insurance) or enrolled under Medicare part B (Supplemental Medical Insurance) is entitled to obtain qualified prescription drug coverage. Authorizes the individual to elect to enroll: (1) in a Medicare Advantage (MA) plan (replacing the current Medicare+Choice plans); (2) in an enhanced fee-for-service (EFFS) plan; or (3) in a prescription drug plan (PDP) if the individual is not enrolled in an MA-EFFS plan (a Medicare Advantage plan and an EFFS plan).Establishes a Medicare Prescription Drug Trust Fund.Outlines standard coverage benefit packages for FY 2006. Includes for the standard package an annual deductible of $250, and requires insurers to cover 80 percent of enrollees drug costs up to the initial coverage limit of $2,000. Requires enrollees to cover all costs between $2,001 and $3,700, and Medicare to cover the entire cost once the beneficiary has reached the $3,700 catastrophic out-of-pocket threshold. Prescribes a formula for adjustment of: (1) such deductible and annual limits for inflation; and (2) such catastrophic limit for each enrollee in a PDP or in an MA-EFFS Rx plan (an MA-EFFS plan which provides qualified prescription drug coverage) whose adjusted gross income exceeds $60,000.Establishes a competitive bidding process for negotiating the terms and conditions of PDP sponsors.Provides for full premium subsidy and reduction of cost-sharing for individuals with incomes below 135 percent of the Federal poverty level. Contains subsidy payments for qualifying entities to promote the participation of PDP and MA-EFFS Rx plan sponsors.Sets out a: (1) new Medicare prescription drug discount card endorsement program under the Medicare program; and (2) requirements for combating waste, fraud, and abuse under Medicare.Makes a number of other changes with regard to Medicare: (1) part A concerning rural health care, inpatient hospital services, skilled nursing facility services, and hospices; (2) part B concerning physicians services and other services; and (3) part A and B concerning home health services, direct graduate medical education, and voluntary chronic care improvement.Establishes the Medicare Benefits Administration in the Department of Health and Human Services. Amends SSA title XVIII part F (Miscellaneous) (currently part D) to include a number of regulatory, contracting, and administrative changes, such as: (1) coordination of educational funding; (2) transfer of responsibility for Medicare appeals; (3) provision of expedited access to judicial review of Medicare appeals; (4) recovery of overpayments; and (5) revision of reassignment requirements.