Analysis of the Costs and Benefits of Medicare Catastrophic Coverage act of 1988 and the Financial Impact on the Elderly

Abstract

This paper examines the benefits and the costs of the Medicare Catastrophic Coverage Act of 1988, as it relates to those 65 years and older, focusing on methods of funding and impact of those methods on various economic groups of elderly. Through literature search and examination of documents and various surveys I will examine the proposed methods of funding. Researching hearings from the House of Representatives, as well as several Senate committees, an analysis will be made of costs of medical services as well as the length of time it would take to plunge the elderly into poverty should they experience a chronic illness or require long term care. Public Law 100-360 will be evaluated for costs and benefits to the enroll lees with emphasis on equity in financing. Equity will be measured by looking at income and portions of income spent out-of-pocket on health care. A determination will then be made whether the benefits outweighed the costs for elderly participants of differing income levels.