Medicare Catastrophic Coverage Act

What Does Medicare Catastrophic Coverage Act Mean?

The Medicare Catastrophic Coverage Act (MCCA) was a bill passed by the government in 1988, aimed at expanding catastrophic coverage for Medicare recipients. However, the act was short-lived, as it was repealed less than two years after its initial implementation.

Insuranceopedia Explains Medicare Catastrophic Coverage Act

The MCCA was intended to enhance catastrophic coverage, include outpatient drugs, and reduce co-pays for covered services. However, it required eligible Medicare recipients to pay a premium. The act was repealed because many Medicare recipients felt that the costs were too high and that the benefits did not justify the expenses. The tradeoff between premiums and benefits is still the main tension in any health plan; our breakdown of premiums, deductibles, co-pays, and coinsurance explains how those costs fit together. Although it represented the first substantial change to the Medicare system since its inception, the MCCA was very short-lived. For anyone comparing Medicare options or private plans today, knowing how to choose health insurance based on your actual costs and needs is the best place to start.