Medicare Modernization and Solvency Act of 2001

Medicare Modernization and Solvency Act of 2001 - Amends title XVIII (Medicare) part C (Medicare+Choice) of the Social Security Act to revise provisions on payments to Medicare+Choice organizations to: (1) require the Secretary of Health and Human Services (HHS), with respect to monthly coverage of an individual in a Medicare+Choice payment area, to make separate monthly payments to each Medicare+Choice organization with respect to benefits under Medicare part A (Hospital Insurance) and part B (Supplementary Medical Insurance) combined, and (as applicable) with respect to benefits under the new optional Medicare part D (Prescription Medicine Benefit for the Aged and Disabled) program established by this Act; (2) replace requirements for calculation of annual Medicare+Choice capitation rates with requirements for submission of monthly plan bids by Medicare+Choice organizations for the provision of benefits; and (3) provide for determination of monthly Medicare+Choice premium reductions.Amends SSA title XVIII to add provisions for: (1) coordinated care services; (2) provider and physician collaborations; (3) a program to improve outcomes and reduce patient morbidity and mortality; (4) increased flexibility in contracting for Medicare claims processing; and (5) funding of activities related to certain overpayment recoveries and provider enrollment and reverification of eligibility.Provides for: (1) promoting the use of cost-effective Medicare noninstitutional services through waiver of benefit limitations; (2) reducing Medicare capital payments in case of excess bed supply in hospitals without a plan of adjustment; (3) provision of Medicare outpatient prescription drug coverage under the Medicare+Choice program; (4) increasing access to Medicare supplemental health insurance for disabled and end stage renal disease beneficiaries; and (5) promoting provision of Medicare cost-sharing assistance under Medicaid for identified low-income Medicare beneficiaries.Amends SSA title XVIII to add a new part E (Purchase of Medicare Benefits by Certain Individuals Age 62 to 65 Years of Age).Provides access to Medicare benefits for displaced workers 55 to 62 years of age.Amends the Employee Retirement Income Security Act of 1974, the Public Health Service Act, and the Internal Revenue Code (IRC) to provide COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) continuation benefits for certain retired workers who lose retiree health coverage.Amends the IRC to provide for Medicare buy-in premiums and certain COBRA continuation coverage premiums.Outlines requirements for protecting and extending Medicare solvency.