To amend title XVIII of the Social Security Act to establish the Medicare Benefits Administration within the Department of Health and Human Services, and for other purposes.

Amends title XVIII (Medicare) of the Social Security Act to establish within the Department of Health and Human Services (HHS) the Medicare Benefits Administration, headed by a Medicare Benefits Administrator who shall carry out Medicare parts C (Medicare+Choice) and D (Miscellaneous) (sic) and provisions relating to the Medicare prescription drug discount card endorsement program.

Directs the Secretary of HHS to establish within the Medicare Benefits Administration an Office of Beneficiary Assistance to coordinate functions relating to outreach and education of Medicare beneficiaries.

Establishes within the Medicare Benefits Administration the Medicare Policy Advisory Board to advise, consult with, and make recommendations to the Administrator with respect to the administration of Medicare parts C and D.

Directs the Administrator to establish a grant program to assist pharmacies in implementing the new prescription drug benefit under Medicare part D.