Medicare Catastrophic Coverage Act

Updated: 11 March 2024

What Does Medicare Catastrophic Coverage Act Mean?

The Medicare Catastrophic Coverage Act, or MCCA, was a bill that was passed by the government in 1988. It was designed to expand catastrophic coverage for Medicare recipients. However, this act turned out to be short lived. It was repealed less than two years after its initial inception date.

Insuranceopedia Explains Medicare Catastrophic Coverage Act

The MCCA was supposed to do things such as improve catastrophic coverage, include outpatient drugs, and reduce copays for covered services. However, it required the payment of a premium from eligible Medicare recipients. The reason why the act was repealed was because many Medicare recipients thought that the costs were too high, and that the benefits did not outweigh the costs. This act was the first substantial change to the Medicare system since its beginning. However, it was very short lived.

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