This article basically deals with the details of Medicare Modernization Act (MMA), the specific schemes that would be available use by people and the various benefits provided under Part D of Medicare and Medicaid. MMA would be available under Part D providing for outpatient medications. The Act would also improve the application of IT with relation to healthcare and in this way improve quality issues in e-prescription and EMR. The rate of medical errors is set to improve following the implementation of the MMA act. The details of the health plan provide under MMA would vary from one state to another. In the US, the implementation of the MMA act is beneficiary for the entire population. However, studies have shown that MMA would not help decrease the cost of healthcare. Efforts should be made to use this act to bring down the costs of healthcare.