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Impact of the Medicare Catastrophic Coverage Act on Enrollees by Selected Demographic Characteristics 1 (January 1989)

handle is hein.congrec/cbo9131 and id is 1 raw text is: q d CONG S OAL aGEr OFFICE U.S CONGRESS WASHNGTON, D.C. 20515 MEMORANDUM January 5, 1989 TO: Health Staff FROM: Sandra Christensen SUBJECT: Impact of the Medicare Catastrophic Coverage Act on Enrollees by Selected Demographic Characteristics This memorandum is in response to a number of requests for additional information on the impact of the Medicare Catastrophic Coverage Act (Public Law 100-360). In particular, requests have been made for estimates of the impact of the Medicare provisions alone (without consideration of medigap and Medicaid coverage), shown by age, disability, and use of services.4/ The first section below summarizes briefly the new Medicare benefits that will be provided under the act. The second section presents impact estimates for enrollees by selected demographic characteristics. OVERVIEW OF NEW MEDICARE BENEFITS New Medicare benefits under the act are to be phased in over several years, with most new Hospital Insurance (HI) benefits to be effective for 1989, new Supplementary Medical Insurance (SKI) benefits to be effective for 1990, and new Catastrophic Drug Insurance (CDI) benefits to be fully effective by 1993. Hospital Insurance The act eliminated all enrollee cost-sharing for hospital inpatient stays except for a single inpatient deductible ($560 for 1989). It eliminated current limits on covered days both for hospital inpatient stays and for hospice benefits. Both coverage limits and coinsurance requirements for stays in skilled nursing facilities 1. See CBO's October 1, 1988, working paper called The Medicare Catastrophic Coverage Act of 1988 for a full description of the act, for CB's cost estimate for the act, and for the impact on enrollees by income and poverty status. The main body of the working paper presents results that show the combined effects of Medicare, Medicaid, and medigap, while an appendix to the working paper shows the effects of Medicare alone, regardless of supplementary coverage.

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