Medicare Preservation and Improvement Act of 2001

Medicare Preservation and Improvement Act of 2001 - Amends the Social Security Act to add a new title XXII (Medicare Competitive Premium System), outlining new parts A (Medicare Plans; Combining Parts A and B), B (Competitive Premium System), C (Medicare Board Charter), D (Unified Medicare Trust Fund); and E (Health Care Financing Administration (HCFA) Duties and Responsibilities).

Limits Medicare beneficiaries to those who are both entitled (or enrolled) under part A and enrolled under part B. Requires entities to offer both standard and high option Medicare plans, confining an outpatient prescription drug benefit and stop-loss coverage to high option plans. Prescribes requirements for computation of core benefit premiums and national average premiums, which shall be subject to geographic and risk adjusters.

Establishes a Medicare Board to govern the program and approve proposed Medicare plans.

Places a limitation on beneficiary obligations in certain areas and provides protection for areas with no contract with a private entity in effect.

Provides for Medicare plans for low-income Medicare beneficiaries.

Requires the Medicare Board to establish a Medicare beneficiary education program to provide timely, readable, accurate, and understandable information to Medicare beneficiaries regarding Medicare plan options. Directs the Medicare Board to establish Medicare Consumer Coalitions to inform Medicare beneficiaries about enrollment in Medicare plans.

Provides that, beginning on January 1, 2004, only Medicare beneficiaries enrolled in the HCFA-sponsored standard plan established under new part E may purchase or renew Medicare supplemental insurance policies.