Medicare Payment Restoration and Benefits Improvement Act of 2003 - Revises requirements with regard to title XVIII (Medicare) of the Social Security Act (SSA): (1) part A concerning rural health care, inpatient hospital services, skilled nursing facility services, and hospices; (2) part B concerning physicians' and other services; and (3) part A and B concerning home health services, Medicare Payment Advisory Commission (MEDPAC), and other specified matters.Amends part C (Medicare+Choice) (M+C) of SSA title XVIII to: (1) provide for equalizing payments between fee-for-service and Medicare+Choice; and (2) specialized Medicare+Choice plans for special needs beneficiaries.Amends: (1) the Omnibus Budget Reconciliation Act of 1987 to provide for extension of the social health maintenance organization demonstration project; and (2) the Consolidated Omnibus Budget Reconciliation Act of 1985 to provide for extension of municipal health service demonstration projects.Amends SSA title XVIII part E (Miscellaneous) (previously part D) to include a number of regulatory reduction, contracting, and administrative changes.
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