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Estimated Impact of Legislation from 1981 through 1989 on Medicare Disbursements 1 (June 1990)

handle is hein.congrec/cbo9134 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE U.S. CONGRESS WASHINGTON, DC 20515 NEMORANDUM June 27, 1990 To: Health Staff From: Sandra Christensen Subject: Estimated Impact of Legislation from 1981 through 1989 on Medicare Disbursements This memorandum responds to numerous requests to update an earlier analysis called 'Recent Trends in Medicare Costs, done in March of 1988. It provides estimates of the impact that legislation enacted since 1980 has had on costs under Medicare, separately by major service categories. Except for 1988, the provisions examined here are contained in the annual budget reconcilation acts from 1981 through 1989. In 1988, there was no budget reconciliation act, but the Medicare Catastrophic Coverage Act (MCCA) was passed. Almost all of the new Medicare benefits provided under this act were subsequently repealed, however. Only new benefits under the Hospital Insurance program were implemented, and these were in place only for calendar year 1989. The only MCCA benefit to survive repeal was a relaxation of the blood deductible requirement, and only the costs of this benefit are shown in the accompanying tables for 1988-. Only legislative changes that altered payment or coverage provisions are included in the analysis. Those changes that altered Medicare receipts through premiums or taxes are not considered here. Thus, the impacts shown are those on total federal disbursements under Medicare, rather than on costs net of offsetting receipts. The results also reflect the impact on total costs under Medicare (adding costesharing amounts paid by enrollees to federal disbursements) because cost-sharing baa been a fairly constant proportion of total costs throughout the 1980s.

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