DEFINITION of 'Medicare Catastrophic Coverage Act Of 1988 - MCCA'

A government bill designed to improve acute care benefits for the elderly and disabled, which was to be phased in from 1989 to 1993. The Medicare Catastrophic Coverage Act of 1988 was meant to expand Medicare benefits to include outpatient drugs and limit enrollees' copayments for covered services. It was the first bill to significantly expand Medicare benefits since the program's inception.

BREAKING DOWN 'Medicare Catastrophic Coverage Act Of 1988 - MCCA'

A supplemental premium paid by all individuals eligible for Medicare Part A was to finance the expanded coverage because of high federal budget deficits at the time, and the supplemental premium was progressive so that it would not cause hardship for poor enrollees. These two characteristics represented a departure from previous methods of financing social insurance programs in the United States. Although the bill passed easily with great support just a year and a half later, the House and Senate repealed it in response to elderly peoples' widespread misunderstanding and criticism of the bill.

RELATED TERMS
  1. Medicare Wages

    An employee's earnings that are subject to a U.S. payroll tax ...
  2. Medicare Advantage

    Hospital and medical insurance provided by private companies ...
  3. Medicare Part B Premiums

    A monthly fee that Medicare participants pay for medical insurance ...
  4. State Health Insurance Assistance ...

    State Health Insurance Assistance Programs (SHIP) offer free ...
  5. Medicare Doughnut Hole

    A range of total prescription drug spending in the Medicare Part ...
  6. Medicare Supplementary Medical ...

    Health insurance sold by private insurance companies meant to ...
Related Articles
  1. Financial Advisor

    How to Help Clients Navigate Medicare Enrollment

    Here's how to help clients navigate the maze of Medicare enrollment.
  2. Retirement

    Pitfalls of Medicare Advantage Plans

    A Medicare Advantage plan may help you lower health costs not covered by Medicare. But there are definite tradeoffs, compared to classic Medicare/Medigap.
  3. Retirement

    Top 5 Costliest Health Issues Retirees Face

    The healthcare system today is murky, with plans changing what they cover. What are the costliest out-of-pocket or underestimated healthcare expenses that retirees need to watch out for?
  4. Retirement

    Medicare Open Enrollment Ends Dec. 7

    Avoid these 4 mistakes during the Medicare Open Enrollment period (Oct. 15 to Dec. 7).
  5. Insurance

    Understanding the Basics of Medicare

    Understanding these Medicare basics will help you choose the coverage that is right for you.
  6. Managing Wealth

    What Does Medicare Cover?

    Don't assume you're insured. Find out what you can expect from this healthcare program.
  7. Retirement

    What Are the Different Parts of Medicare?

    At age 65, most people have to sign up for Medicare. Learn which of its four programs are mandatory – and which you can skip.
  8. Managing Wealth

    Getting Through the Medicare Part D Maze

    Having trouble sorting through your prescription drug coverage options? Try these solutions to finding the right Medicare Part D option.
  9. Insurance

    Obamacare Repeal: Medicare Prices Could Soar

    Medicare recipients face possible higher healthcare costs through Trump's proposed repeal of the Affordable Care Act.
RELATED FAQS
  1. How does the role of Medicare/Medicaid affect the drugs sector in the U.S.? (UNH, ...

    Read about the impact of Medicare and Medicaid on the drugs sector in the United States and how some doctors get rich by ... Read Answer >>
Hot Definitions
  1. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  2. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  3. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  4. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  5. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  6. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
Trading Center